Micron says AI demand pushed sales to $23.86B and points to bigger Q3

03/18/2026 - 01:01 PM

Record results and outlook reflect strategic value of memory in AI era

BOISE, Idaho, March 18, 2026 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its second quarter of fiscal 2026, which ended February 26, 2026.

Fiscal Q2 2026 highlights

• • Revenue of $23.86 billion versus $13.64 billion for the prior quarter and $8.05 billion for the same period last year
  • GAAP net income of $13.79 billion, or $12.07 per diluted share
  • Non-GAAP net income of $14.02 billion, or $12.20 per diluted share
  • Operating cash flow of $11.90 billion versus $8.41 billion for the prior quarter and $3.94 billion for the same period last year

“Micron set new records across revenue, gross margin, EPS, and free cash flow in fiscal Q2, driven by a strong demand environment, tight industry supply, and our strong execution, and we expect significant records again in fiscal Q3,” said Sanjay Mehrotra, Chairman, President and CEO of Micron Technology. “In the AI era, memory has become a strategic asset for our customers, and we are investing in our global manufacturing footprint to support their growing demand. Reflecting confidence in the sustained strength of our business, our board has approved a 30% increase in our quarterly dividend.”

Quarterly Financial Results
(in millions, except per share amounts)	GAAP(1)										Non-GAAP(2)
	FQ2-26			FQ1-26			FQ2-25				FQ2-26			FQ1-26			FQ2-25
Revenue	$	23,860		$	13,643		$	8,053			$	23,860		$	13,643		$	8,053
Gross margin		17,755			7,646			2,963				17,876			7,753			3,053
Percent of revenue		74.4	%		56.0	%		36.8	%			74.9	%		56.8	%		37.9	%
Operating expenses		1,620			1,510			1,190				1,421			1,334			1,046
Operating income		16,135			6,136			1,773				16,455			6,419			2,007
Percent of revenue		67.6	%		45.0	%		22.0	%			69.0	%		47.0	%		24.9	%
Net income		13,785			5,240			1,583				14,021			5,482			1,783
Diluted earnings per share (EPS)		12.07			4.60			1.41				12.20			4.78			1.56

For the second quarter of 2026, investments in capital expenditures, net(2) were $5.0 billion and adjusted free cash flow(2) was $6.9 billion. Micron ended the quarter with cash, marketable investments, and restricted cash of $16.7 billion. On March 18, 2026, Micron’s Board of Directors declared a quarterly dividend of $0.15 per share, payable in cash on April 15, 2026, to shareholders of record as of the close of business on March 30, 2026.

Quarterly Business Unit Financial Results
	FQ2-26			FQ1-26			FQ2-25
Cloud Memory Business Unit
Revenue	$	7,749		$	5,284		$	2,947
Gross margin		74	%		66	%		55	%
Operating margin		66	%		55	%		45	%
Core Data Center Business Unit
Revenue	$	5,687		$	2,379		$	1,830
Gross margin		74	%		51	%		47	%
Operating margin		67	%		37	%		33	%
Mobile and Client Business Unit
Revenue	$	7,711		$	4,255		$	2,236
Gross margin		79	%		54	%		15	%
Operating margin		76	%		47	%		1	%
Automotive and Embedded Business Unit
Revenue	$	2,708		$	1,720		$	1,034
Gross margin		68	%		45	%		21	%
Operating margin		62	%		36	%		6	%

Business Outlook

The following table presents Micron’s guidance for the third quarter of 2026:

FQ3-26	GAAP(1) Outlook	Non-GAAP(2) Outlook
Revenue	$33.5 billion ± $750 million	$33.5 billion ± $750 million
Gross margin	Approximately 81%	Approximately 81%
Operating expenses	Approximately $1.60 billion	Approximately $1.40 billion
Diluted earnings per share	$18.90 ± $0.40	$19.15 ± $0.40

Further information regarding Micron’s business outlook is included in the prepared remarks and slides, which have been posted at investors.micron.com.

Investor Webcast

Micron will host a conference call on Wednesday, March 18, 2026 at 2:30 p.m. Mountain Time to discuss its second quarter financial results and provide forward-looking guidance for its third quarter. A live webcast of the call will be available online at investors.micron.com. A webcast replay will be available for one year after the call.

We encourage you to visit our website at micron.com throughout the quarter for the most current information on the company, including information on financial conferences that we may be attending. You can also follow us on LinkedIn, X (@MicronTech) and YouTube (@MicronTechnology).

About Micron Technology, Inc.

Micron Technology, Inc. is an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.

© 2026 Micron Technology, Inc. All rights reserved. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners.

Forward-Looking Statements

This press release contains forward-looking statements regarding our industry, our strategic position, our customers, including customer demand, and our financial and operating performance, including our guidance for the third quarter of 2026, as well as our investments in manufacturing and goals for such investments. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities and Exchange Commission, including our most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at investors.micron.com/risk-factor. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements to conform these statements to actual results.

(1)

GAAP represents U.S. Generally Accepted Accounting Principles.

(2)

Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings; adjusted free cash flow; investments in capital expenditures, net; and business outlook. Further information regarding Micron’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release.

MICRON TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share amounts) (Unaudited)
	2nd Qtr.			1st Qtr.			2nd Qtr.			Six Months Ended
	February 26, 2026			November 27, 2025			February 27, 2025			February 26, 2026			February 27, 2025
Revenue	$	23,860		$	13,643		$	8,053		$	37,503		$	16,762
Cost of goods sold		6,105			5,997			5,090			12,102			10,451
Gross margin		17,755			7,646			2,963			25,401			6,311
Research and development		1,250			1,171			898			2,421			1,786
Selling, general, and administrative		344			337			285			681			573
Other operating (income) expense, net		26			2			7			28			5
Operating income		16,135			6,136			1,773			22,271			3,947
Interest income		155			139			108			294			215
Interest expense		(32	)		(74	)		(112	)		(106	)		(230	)
Other non-operating income (expense), net		(98	)		(140	)		(11	)		(238	)		(22	)
		16,160			6,061			1,758			22,221			3,910
Income tax (provision) benefit		(2,371	)		(829	)		(177	)		(3,200	)		(460	)
Equity in net income (loss) of equity method investees		(4	)		8			2			4			3
Net income	$	13,785		$	5,240		$	1,583		$	19,025		$	3,453
Earnings per share
Basic	$	12.25		$	4.66		$	1.42		$	16.91		$	3.10
Diluted		12.07			4.60			1.41			16.68			3.08
Number of shares used in per share calculations
Basic		1,126			1,125			1,115			1,125			1,113
Diluted		1,142			1,138			1,123			1,140			1,123

MICRON TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited)
As of	February 26, 2026			November 27, 2025			August 28, 2025
Assets
Cash and equivalents	$	13,908		$	9,731		$	9,642
Short-term investments		681			587			665
Receivables		17,314			10,184			9,265
Inventories		8,267			8,205			8,355
Other current assets		1,243			958			914
Total current assets		41,413			29,665			28,841
Long-term marketable investments		2,038			1,697			1,629
Property, plant, and equipment		51,408			48,477			46,590
Operating lease right-of-use assets		684			700			736
Intangible assets		468			465			453
Deferred tax assets		680			641			616
Goodwill		1,150			1,150			1,150
Other noncurrent assets		3,668			3,176			2,783
Total assets	$	101,509		$	85,971		$	82,798
Liabilities and equity
Accounts payable and accrued expenses	$	10,997		$	9,796		$	9,649
Current debt		585			569			560
Other current liabilities		2,714			1,695			1,245
Total current liabilities		14,296			12,060			11,454
Long-term debt		9,557			11,187			14,017
Noncurrent operating lease liabilities		656			669			701
Noncurrent unearned government incentives		1,002			1,148			1,018
Other noncurrent liabilities		3,539			2,101			1,443
Total liabilities		29,050			27,165			28,633
Commitments and contingencies
Shareholders’ equity
Common stock		127			127			127
Additional capital		14,092			13,610			13,339
Retained earnings		66,824			53,344			48,583
Treasury stock		(8,502	)		(8,152	)		(7,852	)
Accumulated other comprehensive income (loss)		(82	)		(123	)		(32	)
Total equity		72,459			58,806			54,165
Total liabilities and equity	$	101,509		$	85,971		$	82,798

MICRON TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited)
Six Months Ended	February 26, 2026			February 27, 2025
Cash flows from operating activities
Net income	$	19,025		$	3,453
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense and amortization of intangible assets		4,498			4,109
Stock-based compensation		599			469
Change in operating assets and liabilities:
Receivables		(8,298	)		338
Inventories		88			(132	)
Accounts payable and accrued expenses		928			(714	)
Other current liabilities		1,469			(321	)
Other noncurrent liabilities		2,106			195
Other		(101	)		(211	)
Net cash provided by operating activities		20,314			7,186
Cash flows from investing activities
Expenditures for property, plant, and equipment		(11,776	)		(7,261	)
Purchases of available-for-sale securities		(1,120	)		(816	)
Proceeds from government incentives		2,256			1,028
Proceeds from maturities and sales of available-for-sale securities		701			874
Other		(180	)		(125	)
Net cash used for investing activities		(10,119	)		(6,300	)
Cash flows from financing activities
Repayments of debt		(4,626	)		(2,626	)
Repurchases of common stock - repurchase program		(650	)		—
Repurchases of common stock - withholdings on employee equity awards		(545	)		(252	)
Payments of dividends to shareholders		(266	)		(261	)
Proceeds from issuance of debt		—			2,682
Other		175			131
Net cash used for financing activities		(5,912	)		(326	)
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash		5			(49	)
Net increase in cash, cash equivalents, and restricted cash		4,288			511
Cash, cash equivalents, and restricted cash at beginning of period		9,646			7,052
Cash, cash equivalents, and restricted cash at end of period	$	13,934		$	7,563

MICRON TECHNOLOGY, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES (In millions, except per share amounts)
	2nd Qtr.			1st Qtr.			2nd Qtr.
	February 26, 2026			November 27, 2025			February 27, 2025
GAAP gross margin	$	17,755		$	7,646		$	2,963
Stock-based compensation		121			107			89
Other		—			—			1
Non-GAAP gross margin	$	17,876		$	7,753		$	3,053
GAAP operating expenses	$	1,620		$	1,510		$	1,190
Stock-based compensation		(176	)		(173	)		(144	)
Other		(23	)		(3	)		—
Non-GAAP operating expenses	$	1,421		$	1,334		$	1,046
GAAP operating income	$	16,135		$	6,136		$	1,773
Stock-based compensation		297			280			233
Other		23			3			1
Non-GAAP operating income	$	16,455		$	6,419		$	2,007
GAAP net income	$	13,785		$	5,240		$	1,583
Stock-based compensation		297			280			233
Loss on debt prepayments		47			130			4
Other		25			(20	)		—
Estimated tax effects of above and other tax adjustments		(133	)		(148	)		(37	)
Non-GAAP net income	$	14,021		$	5,482		$	1,783
GAAP weighted-average common shares outstanding - Diluted		1,142			1,138			1,123
Adjustment for stock-based compensation		7			10			20
Non-GAAP weighted-average common shares outstanding - Diluted		1,149			1,148			1,143
GAAP diluted earnings per share	$	12.07		$	4.60		$	1.41
Effects of the above adjustments		0.13			0.18			0.15
Non-GAAP diluted earnings per share	$	12.20		$	4.78		$	1.56

RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
	2nd Qtr.			1st Qtr.			2nd Qtr.
	February 26, 2026			November 27, 2025			February 27, 2025
GAAP net cash provided by operating activities	$	11,903		$	8,411		$	3,942
Expenditures for property, plant, and equipment		(6,387	)		(5,389	)		(4,055	)
Proceeds from sales of property, plant, and equipment		5			6			7
Proceeds from government incentives		1,378			878			963
Investments in capital expenditures, net		(5,004	)		(4,505	)		(3,085	)
Adjusted free cash flow	$	6,899		$	3,906		$	857

The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income, net income, diluted shares, diluted earnings per share, and adjusted free cash flow. The non-GAAP adjustments above may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful in understanding trends and in analyzing our operating results and earnings. We are providing this information to investors to assist in performing analysis of our operating results. When evaluating performance and making decisions on how to allocate our resources, management uses this non-GAAP information and believes investors should have access to similar data when making their investment decisions. We believe these non-GAAP financial measures increase transparency by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced comparison of our operating results between periods and with peer companies. The presentation of these adjusted amounts varies from amounts presented in accordance with U.S. GAAP and therefore may not be comparable to amounts reported by other companies. Our management excludes the following items as applicable in analyzing our operating results and understanding trends in our earnings:

• Stock-based compensation;
• Gains and losses from debt prepayments;
• Restructure and asset impairments; and
• The estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures, certain tax matters related to prior fiscal periods, and significant changes in tax law. The divergence between our GAAP and non-GAAP income tax (provision) benefit relates to the difference in our GAAP and non-GAAP estimated annual effective tax rates, which are computed separately.

Non-GAAP diluted shares are adjusted for the impact of additional shares resulting from the exclusion of stock-based compensation from non-GAAP income.

MICRON TECHNOLOGY, INC. RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
FQ3-26	GAAP Outlook		Adjustments				Non-GAAP Outlook
Revenue	$33.5 billion ± $750 million		—				$33.5 billion ± $750 million
Gross margin	Approximately 81%		—		A		Approximately 81%
Operating expenses	Approximately $1.60 billion		$200 million		B		Approximately $1.40 billion
Diluted earnings per share(1)	$18.90 ± $0.40		$0.25		A, B, C		$19.15 ± $0.40

Non-GAAP Adjustments (in millions)
A	Stock-based compensation – cost of goods sold						$	141
B	Stock-based compensation – research and development							132
B	Stock-based compensation – sales, general, and administrative							68
C	Tax effects of the above items and other tax adjustments							(52	)
							$	289

(1)	GAAP earnings per share based on approximately 1.14 billion diluted shares and non-GAAP earnings per share based on approximately 1.15 billion diluted shares.

The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, additional restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.

Contacts: Satya Kumar Investor Relations [email protected] (408) 450-6199 Mark Plungy Media Relations [email protected] (408) 203-2910

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