Micron Technology reported impressive fiscal Q2 2026 earnings that far exceeded Wall Street expectations, yet the stock experienced a steep decline following the announcement. The company announced earnings of $12.20 per share on revenues of $23.9 billion, shattering forecasts which anticipated earnings of $8.79 per share and revenues of $19.2 billion. The staggering year-over-year growth saw sales nearly triple, soaring from $8 billion in fiscal Q2 2025.
CEO Sanjay Mehrotra highlighted the company’s remarkable performance, indicating that Micron achieved new records in revenue, gross margin, earnings per share (EPS), and free cash flow. He emphasized the robust demand for computer memory products and the tight supply conditions in the market. In a show of confidence, Mehrotra announced a 30% increase in the company’s dividend, signaling optimism about future performance.
Despite these positive indicators, the market reacted negatively, with Micron’s stock plummeting by 5.8% as of 9:50 a.m. ET, leaving shares trading at $444.59. The stock’s current market capitalization stands at approximately $520 billion, with a trading range on the day between $421.23 and $457.20.
Looking ahead, Micron has provided forward guidance anticipating $33.5 billion in revenue for the upcoming quarter, with a margin of error of plus or minus $750 million. This projection represents a staggering 260% increase from the revenue generated in fiscal Q3 2025 and is nearly 50% above the forecasts of Wall Street analysts. The company also indicated expected GAAP earnings of $18.90 per share, well ahead of analysts’ non-GAAP expectations.
Analysts had estimated a profit of $36.67 per share for Micron for the year, but at the current valuation of just 12.2 times trailing earnings, the company may be regarded as undervalued given its exceptional growth trajectory. However, concerns regarding an increase in capital expenditures may have contributed to investors’ hesitation.
