Micron Technology (MU) MU Q2 Financial Results Summary
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Micron Technology, Inc. (MU) Q3 2026: Record Revenue and Earnings — Strongly Positive
Micron Technology, Inc. (Nasdaq: MU) reported exceptional results for its third quarter of fiscal 2026, ending May 28, 2026. The company achieved a record revenue of $41.46 billion, which represents a significant increase of $32.16 billion or 346% compared to $9.30 billion in the same period last year. This remarkable growth underscores Micron's strong position in the memory and storage solutions market, particularly in the context of rising demand driven by advancements in artificial intelligence (AI).
Key Financial Metrics
- Revenue: $41.46 billion vs. $9.30 billion YoY (+346%)
- GAAP Net Income: $28.24 billion, or $24.67 per diluted share
- Non-GAAP Net Income: $28.86 billion, or $25.11 per diluted share
- Operating Cash Flow: $25.39 billion vs. $4.61 billion YoY (+450%)
- Adjusted Free Cash Flow: $18.3 billion
- Capital Expenditures: $7.1 billion
Analyst Opinion
This quarter is undoubtedly a strong positive for shareholders. The substantial increase in revenue and net income reflects Micron's successful execution of its strategic initiatives, particularly in securing long-term customer agreements that enhance revenue predictability. The company's ability to generate operating cash flow of $25.39 billion, up from $4.61 billion a year ago, indicates robust operational efficiency and financial health. Furthermore, the declaration of a quarterly dividend of $0.15 per share, payable on July 21, 2026, adds to the attractiveness for investors seeking income.
Business Unit Performance
- Cloud Memory Business Unit: Revenue of $13.77 billion, up from $3.39 billion YoY (+307%)
- Core Data Center Business Unit: Revenue of $11.52 billion, up from $1.53 billion YoY (+653%)
- Mobile and Client Business Unit: Revenue of $11.52 billion, up from $3.26 billion YoY (+253%)
- Automotive and Embedded Business Unit: Revenue of $4.63 billion, up from $1.13 billion YoY (+310%)
Each segment's growth reflects Micron's strategic focus on high-demand areas, particularly in AI and data center applications.
Guidance and Future Outlook
Looking ahead, Micron provided guidance for the fourth quarter of fiscal 2026, projecting revenue of $50.0 billion ± $1.0 billion with a gross margin of approximately 86%. The expected diluted earnings per share are $30.73 ± $1.00. This guidance suggests continued strong performance, driven by ongoing investments in technology and capacity to meet customer demand.
Key Catalysts to Watch
- Continued execution of Strategic Customer Agreements that could further stabilize revenue streams.
- Progress in product development, particularly in advanced memory technologies such as HBM4 and 1-gamma DRAM, which are expected to drive future growth.
- The impact of global demand trends in AI and data centers on Micron's sales and profitability.
In conclusion, Micron's Q3 2026 results not only highlight its operational excellence but also position the company favorably for future growth. The strong financial performance, coupled with strategic investments and a positive outlook, makes Micron a compelling investment opportunity for shareholders.
Note: The following tables are in thousands.
| CONSOLIDATED STATEMENTS OF OPERATIONS | May 28, 2026 | February 26, 2026 | May 29, 2025 | Nine Months Ended | May 28, 2026 | May 29, 2025 |
|---|---|---|---|---|---|---|
| Revenue | $41,400 | $23,800 | $9,301 | $78,900 | $26,000 | |
| Cost of goods sold | 6,400 | 6,105 | 5,793 | 18,500 | 16,000 | |
| Gross margin | 35,000 | 17,700 | 3,508 | 60,400 | 9,800 | |
| Research and development | 1,316 | 1,250 | 965 | 3,737 | 2,700 | |
| Selling, general and administrative | 407 | 344 | 318 | 1,088 | 891 | |
| Other operating expenses (in net) | 15 | 26 | 56 | 43 | 61 | |
| Operating income | 33,300 | 16,100 | 2,169 | 55,500 | 6,100 | |
| Interest income | 215 | 155 | 135 | 509 | 350 | |
| Interest expense | — | -32 | -123 | -106 | -353 | |
| Other non-operating income (expense) | -321 | -98 | -68 | -559 | -90 | |
| Income before tax | 33,200 | 16,100 | 2,113 | 55,400 | 6,000 | |
| Income tax provision (benefit) | -4,900 | -2,300 | -235 | -8,100 | -695 | |
| Equity in net income (loss) of equity method investments | 9 | -4 | 7 | 13 | 10 | |
| Net income | $28,243 | $13,785 | $1,885 | $47,268 | $5,338 | |
| Earnings per share | ||||||
| Basic earnings per share | $25.03 | $12.25 | $1.69 | $41.97 | $4.79 | |
| Diluted earnings per share | 24.67 | 12.07 | 1.68 | 41.40 | 4.75 | |
| Number of shares used in per share calculation | ||||||
| Basic | 1,128 | 1,126 | 1,118 | 1,126 | 1,118 | |
| Diluted | 1,145 | 1,142 | 1,125 | 1,142 | 1,125 |
| CONSOLIDATED BALANCE SHEETS | May 28, 2026 | February 26, 2026 | August 28, 2025 |
|---|---|---|---|
| Assets | |||
| Cash and equivalents | $24,995 | $13,908 | $9,642 |
| Short-term investments | 1,027 | 681 | 665 |
| Receivables | 31,025 | 17,314 | 9,265 |
| Inventories | 8,567 | 8,267 | 8,355 |
| Other current assets | 1,123 | 1,243 | 914 |
| Total current assets | 66,737 | 41,413 | 28,841 |
| Long-term marketable investments | 4,106 | 2,038 | 1,629 |
| Property, plant, and equipment | 56,426 | 51,408 |
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