【AI+MU】Micron Drops 4% After Hours on Strong Results; Expected to Double Capital Expenditure in Second Half of Fiscal Year

SocialAnxietyStaker · 2026-03-19T00:53:20+00:00

Micron announced its fiscal year 2026 second-quarter results, with revenue of $23.86 billion, a 196% increase year-over-year, and an adjusted net profit soaring by 686%. Although it exceeded expectations, concerns about capital expenditures led to a decline in the stock price. Micron revised its full-year capital spending upward to $25 billion and anticipates further increases in fiscal year 2027, mainly targeting HBM and DRAM. The company expects next quarter’s revenue to reach $33.5 billion, once again surpassing analyst predictions. The CEO stated that the earnings growth is driven by demand for artificial intelligence and supply constraints.

SocialAnxietyStaker

2026-03-19 00:53:20

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Micron (MU) reported its second quarter fiscal year 2026 results, ending February 28, with revenue of $23.86 billion, up 196% year-over-year, surpassing expectations of $20.07 billion. Adjusted net income was $14.021 billion, a 686% increase, with adjusted earnings per share of $12.20, exceeding the forecast of $9.31.

However, concerns over capital expenditures caused after-hours U.S. stock prices to fall 4.4%, closing at $441.31. According to Micron, the company has revised its full-year capital spending upward to over $25 billion, with further significant increases planned for FY2027 to support HBM and DRAM, including plant construction costs expected to increase by more than $10 billion compared to the previous year. Global manufacturing facilities include the early acquisition of the Taiwan Tongluo plant, the advancement of new plants in Idaho and New York, and groundbreaking for a new NAND plant in Singapore.

Second quarter capital expenditures totaled $5.004 billion, up 62%, compared to $4.505 billion in the first quarter. In other words, the remaining two quarters of the fiscal year will require $15.49 billion, accelerating the year-over-year increase to 104%.

Micron estimates this quarter’s revenue will reach approximately $33.5 billion, higher than last year’s $9.3 billion, indicating continued exponential growth. This surpasses analyst expectations of $24.3 billion. Adjusted earnings per share are projected at $19.15, exceeding market forecasts of $12.05.

Micron CEO Sanjay Mehrotra stated, “The improved performance and outlook are the joint results of increased memory demand driven by artificial intelligence, structural supply constraints, and Micron’s strong execution across the board.”

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