Micron Technology announced financial results for its second quarter of fiscal 2026 (ended February 26, 2026), covering the period from December 2025 to February 2026. Revenue reached $23.86 billion, representing a substantial sequential increase of 75% and a year-over-year surge of 196%. On a non-GAAP basis, operating income was $16.455 billion, with operating margin expanding to 69% from 47% in the prior quarter. Net income reached $14.021 billion, up 156% sequentially and 686% year-over-year.
Consolidated gross margin for the quarter was 75%, an 18-percentage point improvement from the previous quarter. Micron attributed this significant growth primarily to favorable pricing, an optimized product mix, and effective cost controls. Compared to the same quarter last year, gross margin nearly doubled, reaching an all-time high for the company.
Data Source: Micron Technology, Inc.; Q2 FY2026 covers Dec 2025 – Feb 2026. Chart by CFM Flash Market.
Segment Performance Overview
DRAM revenue reached a record $18.8 billion in the second fiscal quarter, accounting for 79% of total revenue. This represents a 207% increase year-over-year and a 74% sequential increase. DRAM bit shipments grew mid-single-digits sequentially. Driven by industry supply constraints and favorable market dynamics, DRAM ASP increased approximately 65% sequentially.
NAND flash revenue also hit a record high of $5.0 billion in the quarter, comprising 21% of total revenue. This reflects a 169% increase year-over-year and an 82% increase sequentially. NAND bit shipments grew low-single-digits sequentially. NAND ASP increased between 75% and 79%, influenced by competitive market dynamics and a favorable product mix.
The performance of each business unit is as follows:
Compute and Networking Business Unit (CMBU): Revenue of $7.749 billion, 32% of total revenue. Gross margin: 74%. Operating margin: 66%.
Core Data Center Business Unit (CDBU): Revenue of $5.687 billion, 24% of total revenue. Gross margin: 74%. Operating margin: 67%.
Mobile and Client Business Unit (MCBU): Revenue of $7.711 billion, 32% of total revenue. Gross margin: 79%. Operating margin: 76%.
Automotive and Embedded Business Unit (AEBU): Revenue of $2.708 billion, 11% of total revenue. Gross margin: 68%. Operating margin: 62%.
Capacity and Capital Expenditure
To address sustained robust market demand, Micron is significantly increasing its global manufacturing investments. Capital expenditures for fiscal 2026 are now expected to exceed $25 billion, up from the prior estimate of $20 billion communicated in the last earnings call. The increase is primarily related to capital spending for cleanroom facilities, including the recently acquired Powerchip Semiconductor wafer fab in Tongluo and projects at US wafer fab sites.
Micron anticipates capital expenditures will continue to grow substantially in fiscal 2027, driven by investments supporting HBM and DRAM. Construction-related spending is projected to increase by over $10 billion year-over-year. Additionally, equipment spending is also expected to increase year-over-year in fiscal 2027. Alongside these investments, Micron will continue to adjust supply plans appropriately in response to market conditions and customer requirements.
Regarding global expansion: The Tongluo fab is expected to begin shipments in fiscal 2028. The first wafer fab in Idaho remains on track for production startup in mid-2027. Construction has commenced at the New York wafer fab. Cleanroom expansion in Hiroshima, Japan, is progressing smoothly. In the NAND segment, a new fab in Singapore has broken ground, with production anticipated in the second half of fiscal 2028. An assembly and test facility in India has achieved commercial shipments, and an HBM packaging facility in Singapore is expected to become operational in 2027.
As of the end of the fiscal quarter, Micron's inventory stood at $8.3 billion, an increase of $62 million sequentially. Inventory days were 123. DRAM inventory days remain tight, below 120 days.
Data source: Micron, FY2026Q2 fiscal quarter covers December 2025 to February 2026; Chart created by: CFM Flash Market
Technology Innovation
Micron's 1γ DRAM node is progressing well and is expected to become the company's highest-volume node ever, projected to constitute the majority of DRAM shipments by mid-2026. The 1-delta node will introduce the latest EUV equipment.
In the NAND space, the G9 node is advancing according to plan and is expected to account for the majority of shipments by mid-year. QLC bit shipments reached a record high.
The HBM product line continues to see breakthroughs. HBM4 36GB 12H commenced volume shipments in the first quarter of 2026, designed for the NVIDIA Vera Rubin platform. Micron expects HBM4 to achieve mature yields faster than HBM3E. Samples of HBM4 16H, offering 33% more capacity than the 12H version, have been introduced. Development of the next-generation HBM4E is progressing well, with mass production anticipated in 2027.
In low-power DRAM, Micron introduced samples of the industry's first 256GB LPCAMM2, which consumes only one-third the power of DDR solutions. In the data center SSD space, PCIe Gen6 products have entered volume production. The 122TB high-capacity SSD delivers 16x the read throughput per watt compared to HDDs. Micron's data center SSD market share has grown for the fourth consecutive year.
End Markets
In the data center sector, AI demand drove the combined DRAM and NAND data center bit TAM to surpass 50% of the overall industry total for the first time. Server unit shipments are projected to grow approximately 10% in 2026. Data center NAND revenue doubled sequentially.
For the PC market, 2026 unit shipments may see a double-digit percentage decline due to supply constraints. However, AI PCs are driving increased memory requirements, with agentic AI PCs suggesting 32GB+ DRAM configurations. Micron's LPCAMM2 has completed OEM qualifications, and the company has launched its 5th generation QLC client SSD based on G9 NAND.
In the Mobile market, 2026 smartphone shipments also face potential declines. However, AI-capable phones are driving memory upgrades in flagship models. In the fourth quarter of 2025, the proportion of models equipped with 12GB or more DRAM jumped to nearly 80%, up from under 20% in the same period last year. Customer feedback on Micron's 1y LPDDR6 samples has been positive, and LPDDR5X 16Gb products are in volume production.
In the automotive and industrial markets, the Automotive and Embedded Business Unit achieved record revenue exceeding $2.0 billion. L4 autonomous driving requires over 300GB of DRAM. Micron has delivered the industry's first automotive-qualified 1y LPDDR5 samples and pioneered the first G9-based UFS 4.1 automotive solution. Emerging fields like humanoid robots are viewed as significant growth drivers for the next two decades, presenting substantial demand for memory and storage.
Future Outlook
For the third fiscal quarter (March to May 2026), Micron expects revenue in the range of $32.75 billion to $34.25 billion, with gross margin around 81.0%. Key metrics are anticipated to reach new highs. The company stated that pricing improvements, cost optimizations, and a favorable product mix will continue to drive profitability expansion.
Data source: Micron
Compared to the previous quarter's outlook, Micron has raised its expectations for industry DRAM and NAND bit shipment growth for the 2026 calendar year. The company now expects calendar 2026 DRAM bit shipment growth of approximately 20%, slightly above prior forecasts. NAND bit shipment growth is also projected to be around 20%. Micron expects its DRAM and NAND bit shipments to grow roughly in line with industry averages.
Looking ahead to 2027, Micron believes industry bit demand growth for both DRAM and NAND will continue to be constrained by overall supply capabilities, indicating a persistently tight supply-demand balance.
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