TLDR
- Micron reported fiscal Q2 2026 revenue of $23.86 billion with adjusted EPS of $12.20, both beating expectations
- Q3 2026 revenue guidance of ~$33.5 billion came in well above Wall Street forecasts
- Micron raised its fiscal 2026 capex plan to over $25 billion, up ~$5 billion from prior guidance
- The stock fell after earnings despite strong results, with investors reacting to the higher spending plan
- Wall Street consensus remains firmly Buy, with 29 Buy ratings, 5 Strong Buys, and zero Sell ratings per MarketBeat
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Micron Technology delivered a blockbuster quarter on March 19, but the market had questions. Strong revenue and record free cash flow weren’t enough to stop the stock from falling, as investors zeroed in on a sharply higher capital spending plan.
Micron posted fiscal second-quarter 2026 revenue of $23.86 billion and adjusted earnings of $12.20 per share. The company also said it ended the quarter with $16.7 billion in cash and investments, a record for free cash flow.
The numbers were big. But the guidance stole the show — for better and worse.
Micron said it expects fiscal Q3 2026 revenue of around $33.5 billion. That blew past Wall Street estimates. The company credited surging demand for high-bandwidth memory (HBM) used in AI data centers and accelerators.
HBM is the product everyone wants right now. Micron is one of only three major suppliers globally, alongside Samsung and SK hynix. That tight supply picture has helped support pricing and margins.
Why the Stock Dropped
Despite the strong results, Micron stock fell after the earnings release. The trigger was a revised capital expenditure plan.
Micron said fiscal 2026 capex will now exceed $25 billion, up by around $5 billion from its previous guidance. The company said it needs to expand clean-room capacity and ramp DRAM production to meet AI-related demand.
It’s a familiar tension in the chip world — spending big to capture demand, but risking a glut if the cycle turns. Memory companies have been caught out before, and investors remember.
There’s also the matter of how far the stock had already run. Micron had surged more than 61% in 2026 before Thursday’s drop, following strong gains in 2025. At those levels, some profit-taking on any sign of risk is not a surprise.
Analysts Stay Bullish
Wall Street didn’t flinch. Per MarketBeat data published on March 19, Micron carries five Strong Buy ratings, 29 Buy ratings, and four Hold ratings. There are zero Sell ratings.
That’s a clean sweep of bullish sentiment. The four Hold ratings reflect some caution at current levels, but no one is calling it a sell.
Price targets moved around after the report as analysts updated their models. MarketBeat’s tracked consensus range settled between roughly $425.62 and $446.66.
Then came the target hikes. Needham raised its price target to $500. UBS also lifted its target and kept a Buy rating. Both firms pointed to the durability of AI-linked memory demand as the core reason.
Those $500 targets aren’t chasing headlines — they reflect a view that Micron’s AI tailwind has more runway than the market is pricing in.
The debate on the stock has shifted. It’s no longer about whether Micron is recovering. It’s about whether the company can keep growing without overspending.
For now, analysts are saying yes. With 34 Buy or Strong Buy ratings and no Sells in the current MarketBeat data, Micron remains one of the most widely backed names in the AI chip trade.
The stock fell on March 19. The analyst community didn’t move with it.
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