Micron Technology(US:MU)2026-03-18 23:00Revenue Growth - Total revenue for Q2 2026 was $23,860 million, a 75% increase compared to Q1 2026 and a 196% increase compared to Q2 2025, driven by higher sales of DRAM and NAND products [104][105]. - DRAM sales increased by 74% in Q2 2026, primarily due to a mid-60% increase in average selling prices and a mid-single-digit percentage increase in bit shipments [106]. - NAND sales increased by 82% in Q2 2026, primarily due to a high-70% increase in average selling prices and a low-single-digit percentage increase in bit shipments [106]. - CMBU revenue increased by 47% in Q2 2026 compared to Q1 2026, primarily due to increases in average selling prices and favorable mix [113]. - CDBU revenue increased by 139% in Q2 2026 compared to Q1 2026, driven by increases in average selling prices and bit shipments [113]. - MCBU revenue increased by 81% in Q2 2026 compared to Q1 2026, primarily due to increases in average selling prices [113]. - AEBU revenue increased by 57% in Q2 2026 compared to Q1 2026, primarily due to increases in average selling prices [113]. Profitability - Consolidated gross margin improved to 74% in Q2 2026 from 56% in Q1 2026, attributed to higher average selling prices and manufacturing cost reductions [108]. - Operating income for Q2 2026 was $16,135 million, representing 68% of total revenue, compared to 45% in Q1 2026 [103]. - Operating income for CMBU, CDBU, MCBU, and AEBU all increased in Q2 2026, mainly due to higher average selling prices [120]. - Income before taxes for Q2 2026 was $16.16 billion, with an effective tax rate of 14.7% [121]. Expenses - R&D expenses for Q2 2026 increased by 39% compared to Q2 2025, driven by higher volumes of development wafers and increased employee compensation [117]. - SG&A expenses for Q2 2026 increased by 21% compared to Q2 2025, primarily due to higher employee compensation [118]. Cash Flow and Investments - Cash and marketable investments totaled $16.63 billion as of February 26, 2026, up from $11.94 billion as of August 28, 2025 [124]. - Net cash provided by operating activities for the first six months of 2026 was $20.31 billion, significantly higher than $7.19 billion in the same period of 2025 [138]. - Net cash used for investing activities in the first six months of 2026 was $10.12 billion, primarily for property, plant, and equipment [142]. - Capital expenditures for property, plant, and equipment are estimated to exceed $25 billion in 2026 [127]. - The company plans to invest in new DRAM wafer capacity and has announced construction of new manufacturing sites in Idaho and New York [128][130]. - The company has authorized a stock repurchase of up to $10 billion, with $7.84 billion repurchased as of February 26, 2026 [135]. Market Risk Management - There have been no material changes to the company's market risk during the six months ended February 26, 2026 [148]. - The company continues to monitor interest rates and currency exchange rates as part of its market risk management strategy [148]. - The Annual Report on Form 10-K for the year ended August 28, 2025, provides further discussion on market risk and sensitivity analysis [148].