Micron Technology (NASDAQ:MU) delivered a historic performance for fiscal Q2 2026, shattering expectations as memory continues its transition into a critical AI infrastructure asset. Revenue reached a record $23.86 billion, significantly surpassing the $19.18 billion expected, while adjusted EPS climbed to $12.20, well ahead of the $8.60 estimate. Guidance for fiscal Q3 was equally aggressive, with a revenue midpoint of $33.50 billion and EPS of $19.15, both tracking nearly 50% above Wall Street projections.
The primary narrative was the explosive growth in high-value segments, specifically Cloud Memory and Core Data Center, which saw sequential revenue increases of 47% and 139% respectively. Massive margin expansion was the highlight of the quarter, as non-GAAP gross margins hit 74% and are projected to reach 81% next quarter. Leadership confirmed that HBM capacity is now effectively sold out through both 2026 and 2027, providing rare long-term visibility into pricing and volume.
During the Q&A, analysts focused heavily on the sustainability of this growth and the capital intensity required to maintain it. Management defended a significant increase in the fiscal 2026 CapEx budget to $25 billion, arguing that the transition to HBM4 requires more physical wafer capacity than prior nodes, making new fab investment mandatory rather than discretionary. While the fundamental story remains exceptionally bullish, the sheer scale of capital commitments introduces new layers of risk. With tens of billions dedicated to greenfield expansion in New York and Idaho, any potential softening in AI hardware demand or a shift in hyperscaler spending could leave the company exposed to significant fixed-cost headwinds in future cycles.
For more details, key highlights, and commentary, check out the high-level earnings summary.
