Micron Technology, Inc. has reported its financial results for the second quarter of fiscal year 2026, highlighting significant growth in revenue and gross margins. The company's total revenue for the second quarter of 2026 increased by 75% compared to the first quarter, reaching $23.86 billion. This growth was primarily driven by increases in sales of both DRAM and NAND products.
DRAM products saw a 74% increase in sales, mainly due to a mid-60% range increase in average selling prices and a mid-single-digit percentage range increase in bit shipments. Similarly, NAND product sales increased by 82%, driven by a high-70% range increase in average selling prices and a low-single-digit percentage range increase in bit shipments.
The company's consolidated gross margin percentage improved to 74% for the second quarter of 2026 from 56% for the first quarter of 2026, driven by improvements in margins for both DRAM and NAND products. This improvement was attributed to increases in average selling prices, favorable mix, and manufacturing cost reductions driven by improvements in product and process technology.
In terms of business units, revenue for each segment increased significantly compared to the corresponding periods of 2025. The Compute and Networking Business Unit (CMBU) saw a 163% increase, the Mobile Business Unit (MCBU) saw a 245% increase, the Storage Business Unit (CDBU) saw a 211% increase, and the Embedded Business Unit (AEBU) saw a 162% increase in revenue.
Operating income for each business unit also saw substantial growth, with the CMBU, CDBU, MCBU, and AEBU reporting increases of 66%, 67%, 76%, and 62% respectively for the second quarter of 2026 compared to the first quarter of 2026.
The company's research and development (R&D) expenses increased by 7% for the second quarter of 2026 compared to the first quarter, primarily due to an increase in employee compensation. Similarly, selling, general, and administrative (SG&A) expenses increased by 21% for the second quarter of 2026 compared to the first quarter, primarily due to increases in employee compensation.
Micron Technology, Inc. reported an effective tax rate of 14.7% for the second quarter of 2026, which was slightly higher than the 13.7% reported for the first quarter of 2026. The change in the effective tax rate for the second quarter and first six months of 2026, compared to the corresponding periods of 2025, was primarily due to the implementation of the 15% minimum tax Pillar Two Model Rules in Singapore, which largely offset the benefit from the company's Singapore tax incentive arrangements.
The market has reacted to these announcements by moving the company's shares 7.76% to a price of $362.75. If you want to know more, read the company's complete 10-Q report here.
