BOISE, Idaho — Micron Technology reported financial results Wednesday evening that shattered every record in the company's history and stunned Wall Street with guidance that pointed to yet another round of extraordinary growth. For its fiscal second quarter ended February 28, 2026, Micron posted revenue of $23.86 billion, up 196% from the year-ago period and a 75% sequential increase — the largest dollar-denominated sequential revenue gain in the company's existence. Adjusted earnings per share of $12.20 beat the consensus estimate of $9.31 by more than 30%. The results sent the stock modestly higher in after-hours trading, with some analysts attributing the muted reaction to investor expectations having already been elevated.
The guidance, however, was unambiguous in its ambition. For fiscal Q3, Micron projected revenue of $33.5 billion — a figure that, the company noted, exceeds the total annual revenue Micron generated in every fiscal year through fiscal 2024. Operating margin is expected to reach approximately 81%, an extraordinary level for what has historically been considered a commodity business. CEO Sanjay Mehrotra attributed the step-change to 'an increase in memory demand driven by AI, structural supply constraints, and Micron's strong execution across the board.' He also announced a 30% increase in the quarterly dividend to $0.15 per share, reflecting confidence in the sustainability of the company's cash generation.
The engine driving these numbers is AI infrastructure. Micron's high-bandwidth memory — the specialized DRAM stacked atop Nvidia's GPU dies to enable the rapid data movement required by AI models — is in a state of acute undersupply. Mehrotra confirmed that volume production of HBM4, the next-generation standard, for Nvidia's upcoming Vera Rubin chips began in fiscal Q1, and HBM4e is slated to ramp in 2027. Micron said it has secured agreements covering its entire calendar 2026 HBM supply. Some customers are receiving only 50% to two-thirds of their requested supply, underscoring the tightness of the market.
Cloud and data center revenue led the growth, with cloud memory revenue rising more than 160% to $7.75 billion. The mobile and client unit also surged to $7.71 billion from $2.24 billion a year earlier. In a notable strategic development, Micron signed its first five-year Strategic Customer Agreement, providing long-term volume and supply commitments that management said would materially enhance revenue visibility. The company also disclosed that its 1-gamma DRAM and G9 NAND technology nodes are on track to represent a majority of its production mix by mid-calendar 2026, which is expected to further expand margins as yields improve.
On the manufacturing front, Micron is building two massive campus-scale fabrication facilities — one in Clay, New York, backed by a $100 billion investment commitment, and another in Boise, Idaho, with initial production expected by mid-2027. Full-year fiscal 2026 capital expenditures are expected to exceed $25 billion, with an even higher step-up planned for fiscal 2027 as the AI buildout continues to accelerate. The company ended the quarter with its highest net cash position on record after reducing total debt by more than $5 billion over the past three quarters.
The implications of Micron's results extend broadly across the semiconductor ecosystem. Companies supplying equipment, materials, and services to Micron — including Lam Research, Applied Materials, ASML, and Tokyo Electron — should see continued order strength. The results also reinforce the demand signals that Nvidia highlighted at its GTC conference earlier this week, building a compelling case that the AI infrastructure investment cycle is accelerating rather than plateauing.