"Micron Technology's Q2 FY2026 guidance called for revenue of $18.70 billion and non-GAAP EPS of $8.42, following a record-breaking Q1 with revenue of $13.64 billion."
"The significant increase in capital expenditures to $5.39 billion in Q1 FY2026, up 68% year over year, indicates a strong bet on sustained AI-driven memory demand."
"Concerns arose from a large debt repurchase tender offer and a meaningful increase in capital expenditure guidance, which could pressure near-term profitability."
"CEO Sanjay Mehrotra stated, 'Our Q2 outlook reflects substantial records across revenue, gross margin, EPS and free cash flow,' indicating high expectations from investors."
Micron Technology shares declined 5% following fiscal Q2 2026 earnings, which, while strong, raised investor concerns due to a debt repurchase tender offer and increased capital expenditure guidance. The company set ambitious targets, including $18.70 billion in revenue and a non-GAAP EPS of $8.42. However, the significant rise in capital expenditures, which reached $5.39 billion in Q1 FY2026, raises questions about future profitability amid potential fluctuations in AI-driven memory demand. The market is currently assessing these risks.
Read at 24/7 Wall St.
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