Micron Earnings Hit Record Q2 Results
Micron earnings topped forecasts with a record Q2 and higher Q3 guidance, prompting traders to weigh upside versus heavy capex and cash-flow risk.
KEY TAKEAWAYS
- Record Q2 revenue of $23.9B and EPS of $12.2 beat Street estimates.
- Management raised Q3 revenue guidance to $33.5B and gross margin to 81.0%.
- FY2026 capex set above $25.0B, deepening analyst split over cash flow and valuation.
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Micron Technology reported a record quarter on April 1, 2026, as Micron earnings topped forecasts and the company issued elevated Q3 revenue and margin guidance. The results have intensified debate between AI-driven demand and rising capital spending that could pressure cash flow.
Record Quarter and Elevated Guidance
Micron’s Q2 revenue reached $23.9 billion, surpassing the consensus estimate of $20.1 billion. Earnings per share came in at $12.20, well above the $9.31 expected. These figures marked the company’s strongest quarterly sales on record and exceeded Street expectations.
The company projected Q3 revenue of $33.5 billion and an 81.0% gross margin, reflecting anticipated demand for AI-related memory products.
Capital Spending and Analyst Divergence
Micron plans to spend more than $25.0 billion on capital expenditures in fiscal 2026, with further increases expected in 2027 as it expands capacity for AI workloads. Analysts are divided on this outlook. Some rate the stock a Strong Buy, citing robust AI-driven demand, while others have downgraded it to Sell, concerned that heavy spending and current valuation could pressure returns and free cash flow.
The company declared a quarterly dividend of $0.15 per share, annualized to $0.60, with a record date of March 30, 2026, representing a yield of roughly 0.2%.
The combination of a record quarter and an aggressive capital-spending program has deepened investor debate about future free cash flow and valuation. Supporters point to the strong guidance and higher margins as signs of durable demand, while critics warn that the spending could compress cash generation and complicate longer-term returns.
