Micron Shares Fall 6% Despite Strong Results on Higher Capex Plans

Font: Financial Modeling Prep  • Mar 19, 2026

Micron Technology (NASDAQ: MU) reported strong fiscal second-quarter results, with revenue nearly tripling year over year and earnings rising sharply, but shares fell more than 6% in premarket trading Thursday after the company announced higher-than-expected capital spending plans.

The semiconductor manufacturer posted adjusted earnings per share of $12.20 for the quarter ended February 26, significantly higher than $1.56 in the prior year and well above the analyst consensus of $8.79.

Revenue surged 196% year over year to $23.86 billion, compared with $8.05 billion a year earlier, exceeding estimates of $19.19 billion. Gross margin reached a record 74.9%, increasing 18 percentage points sequentially.

DRAM revenue, which accounted for 79% of total sales, totaled $18.77 billion, representing a 207% increase year over year. Bit shipments rose in the mid-single-digit range, while pricing increased in the mid-60% range.

NAND revenue climbed 169% to $5.0 billion, supported by pricing gains in the high-70% range.

For the current quarter ending in May, Micron forecast revenue of $33.5 billion, plus or minus $750 million, significantly above the analyst estimate of $24.29 billion. Adjusted EPS guidance of $19.15 was nearly double the consensus estimate of $12.03, and gross margin is expected to rise to 81%, up 610 basis points sequentially.

However, the company said it plans to invest more than $25 billion in new manufacturing facilities in fiscal 2026, approximately $5 billion higher than previous projections. It also expects capital expenditures to increase by more than $10 billion year over year in fiscal 2027 as it expands global manufacturing capacity. Construction spending is expected to outpace equipment spending in both fiscal 2026 and 2027.