Micron (MU 7.24%) reported a powerful earnings beat last night, earning $12.20 per share on $23.9 billion in fiscal Q2 2026 revenue, where Wall Street expected only $8.79 per share and $19.2 billion in sales.
The stock promptly crashed. As of 9:50 a.m. ET, Micron stock is down 5.8%.
Image source: Micron.
Wait. What?
Yes, you read that right. Micron came close to tripling its sales year over year (fiscal Q2 2025 sales were only $8 billion). Non-GAAP earnings soared 682% to $12.20, and GAAP standard earnings did even better, rising 756% to $12.07 per share.
CEO Sanjay Mehrotra said, "Micron set new records across revenue, gross margin, EPS, and free cash flow in fiscal Q2," confirming demand for computer memory products remains strong, and supply tight. He promised to set even more "significant" records in Q3 -- and in demonstration of this confidence, Micron raised its dividend by 30%.
Investors sold off Micron stock anyway.
NASDAQ: MU
Key Data Points
Micron firing on all cylinders
Micron gave guidance for $33.5 billion in revenue this coming quarter (plus or minus $750 million). That's 260% more revenue than the company collected in fiscal Q3 2025, and nearly 50% more than Wall Street analysts are forecasting. The company said quarterly GAAP earnings should be $18.90 per share, plus or minus $0.40, well ahead of the $10.57 non-GAAP forecast.
At this rate, Micron is going to blow past analyst forecasts of $36.67 per share in profit this year, with growth well into the triple digits. And yet, investors are valuing the stock at just 12.2 times trailing earnings.
Granted, Micron says it will need to expand capex. Possibly, this has investors a bit spooked. But at this price, and this growth rate, Micron looks like quite a bargain.
