| Micron Technology, Inc. Reports Results for the Second Quarter of Fiscal 2026Record results and outlook reflect strategic value of memory in AI eraGlobeNewswireMarch 18, 2026 BOISE, Idaho, March 18, 2026 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its second quarter of fiscal 2026, which ended February 26, 2026. Fiscal Q2 2026 highlights Revenue of $23.86 billion versus $13.64 billion for the prior quarter and $8.05 billion for the same period last yearGAAP net income of $13.79 billion, or $12.07 per diluted shareNon-GAAP net income of $14.02 billion, or $12.20 per diluted shareOperating cash flow of $11.90 billion versus $8.41 billion for the prior quarter and $3.94 billion for the same period last year"Micron set new records across revenue, gross margin, EPS, and free cash flow in fiscal Q2, driven by a strong demand environment, tight industry supply, and our strong execution, and we expect significant records again in fiscal Q3," said Sanjay Mehrotra, Chairman, President and CEO of Micron Technology. "In the AI era, memory has become a strategic asset for our customers, and we are investing in our global manufacturing footprint to support their growing demand. Reflecting confidence in the sustained strength of our business, our board has approved a 30% increase in our quarterly dividend." Quarterly Financial Results(in millions, except per share amounts)GAAP(1)Non-GAAP(2)FQ2-26FQ1-26FQ2-25FQ2-26FQ1-26FQ2-25Revenue$23,860$13,643$8,053$23,860$13,643$8,053Gross margin17,7557,6462,96317,8767,7533,053Percent of revenue74.4%56.0%36.8%74.9%56.8%37.9%Operating expenses1,6201,5101,1901,4211,3341,046Operating income16,1356,1361,77316,4556,4192,007Percent of revenue67.6%45.0%22.0%69.0%47.0%24.9%Net income13,7855,2401,58314,0215,4821,783Diluted earnings per share (EPS)12.074.601.4112.204.781.56For the second quarter of 2026, investments in capital expenditures, net(2) were $5.0 billion and adjusted free cash flow(2) was $6.9 billion. Micron ended the quarter with cash, marketable investments, and restricted cash of $16.7 billion. On March 18, 2026, Micron's Board of Directors declared a quarterly dividend of $0.15 per share, payable in cash on April 15, 2026, to shareholders of record as of the close of business on March 30, 2026. Quarterly Business Unit Financial ResultsFQ2-26FQ1-26FQ2-25Cloud Memory Business UnitRevenue$7,749$5,284$2,947Gross margin74%66%55%Operating margin66%55%45%Core Data Center Business UnitRevenue$5,687$2,379$1,830Gross margin74%51%47%Operating margin67%37%33%Mobile and Client Business UnitRevenue$7,711$4,255$2,236Gross margin79%54%15%Operating margin76%47%1%Automotive and Embedded Business UnitRevenue$2,708$1,720$1,034Gross margin68%45%21%Operating margin62%36%6%Business Outlook The following table presents Micron's guidance for the third quarter of 2026: FQ3-26GAAP(1) OutlookNon-GAAP(2) OutlookRevenue$33.5 billion ± $750 million$33.5 billion ± $750 millionGross marginApproximately 81%Approximately 81%Operating expensesApproximately $1.60 billionApproximately $1.40 billionDiluted earnings per share$18.90 ± $0.40$19.15 ± $0.40Further information regarding Micron's business outlook is included in the prepared remarks and slides, which have been posted at investors.micron.com. Investor Webcast Micron will host a conference call on Wednesday, March 18, 2026 at 2:30 p.m. Mountain Time to discuss its second quarter financial results and provide forward-looking guidance for its third quarter. A live webcast of the call will be available online at investors.micron.com. A webcast replay will be available for one year after the call. We encourage you to visit our website at micron.com throughout the quarter for the most current information on the company, including information on financial conferences that we may be attending. You can also follow us on LinkedIn, X (@MicronTech) and YouTube (@MicronTechnology). About Micron Technology, Inc. Micron Technology, Inc. is an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications that unleash opportunities -- from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com. (C) 2026 Micron Technology, Inc. All rights reserved. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners. Forward-Looking Statements This press release contains forward-looking statements regarding our industry, our strategic position, our customers, including customer demand, and our financial and operating performance, including our guidance for the third quarter of 2026, as well as our investments in manufacturing and goals for such investments. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities and Exchange Commission, including our most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at investors.micron.com/risk-factor. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements to conform these statements to actual results. (1)GAAP represents U.S. Generally Accepted Accounting Principles.(2)Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings; adjusted free cash flow; investments in capital expenditures, net; and business outlook. Further information regarding Micron's use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release.MICRON TECHNOLOGY, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(In millions, except per share amounts)(Unaudited)2nd Qtr.1st Qtr.2nd Qtr.Six Months EndedFebruary 26,2026November 27,2025February 27,2025February 26,2026February 27,2025Revenue$23,860$13,643$8,053$37,503$16,762Cost of goods sold6,1055,9975,09012,10210,451Gross margin17,7557,6462,96325,4016,311Research and development1,2501,1718982,4211,786Selling, general, and administrative344337285681573Other operating (income) expense, net2627285Operating income16,1356,1361,77322,2713,947Interest income155139108294215Interest expense(32)(74)(112)(106)(230)Other non-operating income (expense), net(98)(140)(11)(238)(22)16,1606,0611,75822,2213,910Income tax (provision) benefit(2,371)(829)(177)(3,200)(460)Equity in net income (loss) of equity method investees(4)8243Net income$13,785$5,240$1,583$19,025$3,453Earnings per shareBasic$12.25$4.66$1.42$16.91$3.10Diluted12.074.601.4116.683.08Number of shares used in per share calculationsBasic1,1261,1251,1151,1251,113Diluted1,1421,1381,1231,1401,123MICRON TECHNOLOGY, INC.CONSOLIDATED BALANCE SHEETS(In millions)(Unaudited)As ofFebruary 26,2026November 27,2025August 28,2025AssetsCash and equivalents$13,908$9,731$9,642Short-term investments681587665Receivables17,31410,1849,265Inventories8,2678,2058,355Other current assets1,243958914Total current assets41,41329,66528,841Long-term marketable investments2,0381,6971,629Property, plant, and equipment51,40848,47746,590Operating lease right-of-use assets684700736Intangible assets468465453Deferred tax assets680641616Goodwill1,1501,1501,150Other noncurrent assets3,6683,1762,783Total assets$101,509$85,971$82,798Liabilities and equityAccounts payable and accrued expenses$10,997$9,796$9,649Current debt585569560Other current liabilities2,7141,6951,245Total current liabilities14,29612,06011,454Long-term debt9,55711,18714,017Noncurrent operating lease liabilities656669701Noncurrent unearned government incentives1,0021,1481,018Other noncurrent liabilities3,5392,1011,443Total liabilities29,05027,16528,633Commitments and contingenciesShareholders' equityCommon stock127127127Additional capital14,09213,61013,339Retained earnings66,82453,34448,583Treasury stock(8,502)(8,152)(7,852)Accumulated other comprehensive income (loss)(82)(123)(32)Total equity72,45958,80654,165Total liabilities and equity$101,509$85,971$82,798MICRON TECHNOLOGY, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited)Six Months EndedFebruary 26,2026February 27,2025Cash flows from operating activitiesNet income$19,025$3,453Adjustments to reconcile net income to net cash provided by operating activities:Depreciation expense and amortization of intangible assets4,4984,109Stock-based compensation599469Change in operating assets and liabilities:Receivables(8,298)338Inventories88(132)Accounts payable and accrued expenses928(714)Other current liabilities1,469(321)Other noncurrent liabilities2,106195Other(101)(211)Net cash provided by operating activities20,3147,186Cash flows from investing activitiesExpenditures for property, plant, and equipment(11,776)(7,261)Purchases of available-for-sale securities(1,120)(816)Proceeds from government incentives2,2561,028Proceeds from maturities and sales of available-for-sale securities701874Other(180)(125)Net cash used for investing activities(10,119)(6,300)Cash flows from financing activitiesRepayments of debt(4,626)(2,626)Repurchases of common stock - repurchase program(650)--Repurchases of common stock - withholdings on employee equity awards(545)(252)Payments of dividends to shareholders(266)(261)Proceeds from issuance of debt--2,682Other175131Net cash used for financing activities(5,912)(326)Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash5(49)Net increase in cash, cash equivalents, and restricted cash4,288511Cash, cash equivalents, and restricted cash at beginning of period9,6467,052Cash, cash equivalents, and restricted cash at end of period$13,934$7,563MICRON TECHNOLOGY, INC.RECONCILIATION OF GAAP TO NON-GAAP MEASURES(In millions, except per share amounts)2nd Qtr.1st Qtr.2nd Qtr.February 26,2026November 27,2025February 27,2025GAAP gross margin$17,755$7,646$2,963Stock-based compensation12110789Other----1Non-GAAP gross margin$17,876$7,753$3,053GAAP operating expenses$1,620$1,510$1,190Stock-based compensation(176)(173)(144)Other(23)(3)--Non-GAAP operating expenses$1,421$1,334$1,046GAAP operating income$16,135$6,136$1,773Stock-based compensation297280233Other2331Non-GAAP operating income$16,455$6,419$2,007GAAP net income$13,785$5,240$1,583Stock-based compensation297280233Loss on debt prepayments471304Other25(20)--Estimated tax effects of above and other tax adjustments(133)(148)(37)Non-GAAP net income$14,021$5,482$1,783GAAP weighted-average common shares outstanding - Diluted1,1421,1381,123Adjustment for stock-based compensation71020Non-GAAP weighted-average common shares outstanding - Diluted1,1491,1481,143GAAP diluted earnings per share$12.07$4.60$1.41Effects of the above adjustments0.130.180.15Non-GAAP diluted earnings per share$12.20$4.78$1.56RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued2nd Qtr.1st Qtr.2nd Qtr.February 26,2026November 27,2025February 27,2025GAAP net cash provided by operating activities$11,903$8,411$3,942Expenditures for property, plant, and equipment(6,387)(5,389)(4,055)Proceeds from sales of property, plant, and equipment567Proceeds from government incentives1,378878963Investments in capital expenditures, net(5,004)(4,505)(3,085)Adjusted free cash flow$6,899$3,906$857The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income, net income, diluted shares, diluted earnings per share, and adjusted free cash flow. The non-GAAP adjustments above may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful in understanding trends and in analyzing our operating results and earnings. We are providing this information to investors to assist in performing analysis of our operating results. When evaluating performance and making decisions on how to allocate our resources, management uses this non-GAAP information and believes investors should have access to similar data when making their investment decisions. We believe these non-GAAP financial measures increase transparency by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced comparison of our operating results between periods and with peer companies. The presentation of these adjusted amounts varies from amounts presented in accordance with U.S. GAAP and therefore may not be comparable to amounts reported by other companies. Our management excludes the following items as applicable in analyzing our operating results and understanding trends in our earnings: Stock-based compensation;Gains and losses from debt prepayments;Restructure and asset impairments; andThe estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures, certain tax matters related to prior fiscal periods, and significant changes in tax law. The divergence between our GAAP and non-GAAP income tax (provision) benefit relates to the difference in our GAAP and non-GAAP estimated annual effective tax rates, which are computed separately.Non-GAAP diluted shares are adjusted for the impact of additional shares resulting from the exclusion of stock-based compensation from non-GAAP income. MICRON TECHNOLOGY, INC.RECONCILIATION OF GAAP TO NON-GAAP OUTLOOKFQ3-26GAAP OutlookAdjustmentsNon-GAAP OutlookRevenue$33.5 billion ± $750 million--$33.5 billion ± $750 millionGross marginApproximately 81%--AApproximately 81%Operating expensesApproximately $1.60 billion$200 millionBApproximately $1.40 billionDiluted earnings per share(1)$18.90 ± $0.40$0.25A, B, C$19.15 ± $0.40Non-GAAP Adjustments(in millions)AStock-based compensation - cost of goods sold$141BStock-based compensation - research and development132BStock-based compensation - sales, general, and administrative68CTax effects of the above items and other tax adjustments(52)$289(1)GAAP earnings per share based on approximately 1.14 billion diluted shares and non-GAAP earnings per share based on approximately 1.15 billion diluted shares.The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, additional restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.  | Contacts:
Satya Kumar
Investor Relations
satyakumar@micron.com
(408) 450-6199
Mark Plungy
Media Relations
mplungy@micron.com
(408) 203-2910 | |
COMTEX_475503300/2010/2026-03-18T16:01:01 BOISE, Idaho, March 18, 2026 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its second quarter of fiscal 2026, which ended February 26, 2026. Fiscal Q2 2026 highlights Revenue of $23.86 billion versus $13.64 billion for the prior quarter and $8.05 billion for the same period last yearGAAP net income of $13.79 billion, or $12.07 per diluted shareNon-GAAP net income of $14.02 billion, or $12.20 per diluted shareOperating cash flow of $11.90 billion versus $8.41 billion for the prior quarter and $3.94 billion for the same period last year"Micron set new records across revenue, gross margin, EPS, and free cash flow in fiscal Q2, driven by a strong demand environment, tight industry supply, and our strong execution, and we expect significant records again in fiscal Q3," said Sanjay Mehrotra, Chairman, President and CEO of Micron Technology. "In the AI era, memory has become a strategic asset for our customers, and we are investing in our global manufacturing footprint to support their growing demand. Reflecting confidence in the sustained strength of our business, our board has approved a 30% increase in our quarterly dividend." Quarterly Financial Results(in millions, except per share amounts)GAAP(1)Non-GAAP(2)FQ2-26FQ1-26FQ2-25FQ2-26FQ1-26FQ2-25Revenue$23,860$13,643$8,053$23,860$13,643$8,053Gross margin17,7557,6462,96317,8767,7533,053Percent of revenue74.4%56.0%36.8%74.9%56.8%37.9%Operating expenses1,6201,5101,1901,4211,3341,046Operating income16,1356,1361,77316,4556,4192,007Percent of revenue67.6%45.0%22.0%69.0%47.0%24.9%Net income13,7855,2401,58314,0215,4821,783Diluted earnings per share (EPS)12.074.601.4112.204.781.56For the second quarter of 2026, investments in capital expenditures, net(2) were $5.0 billion and adjusted free cash flow(2) was $6.9 billion. Micron ended the quarter with cash, marketable investments, and restricted cash of $16.7 billion. On March 18, 2026, Micron's Board of Directors declared a quarterly dividend of $0.15 per share, payable in cash on April 15, 2026, to shareholders of record as of the close of business on March 30, 2026. Quarterly Business Unit Financial ResultsFQ2-26FQ1-26FQ2-25Cloud Memory Business UnitRevenue$7,749$5,284$2,947Gross margin74%66%55%Operating margin66%55%45%Core Data Center Business UnitRevenue$5,687$2,379$1,830Gross margin74%51%47%Operating margin67%37%33%Mobile and Client Business UnitRevenue$7,711$4,255$2,236Gross margin79%54%15%Operating margin76%47%1%Automotive and Embedded Business UnitRevenue$2,708$1,720$1,034Gross margin68%45%21%Operating margin62%36%6%Business Outlook The following table presents Micron's guidance for the third quarter of 2026: FQ3-26GAAP(1) OutlookNon-GAAP(2) OutlookRevenue$33.5 billion ± $750 million$33.5 billion ± $750 millionGross marginApproximately 81%Approximately 81%Operating expensesApproximately $1.60 billionApproximately $1.40 billionDiluted earnings per share$18.90 ± $0.40$19.15 ± $0.40Further information regarding Micron's business outlook is included in the prepared remarks and slides, which have been posted at investors.micron.com. Investor Webcast Micron will host a conference call on Wednesday, March 18, 2026 at 2:30 p.m. Mountain Time to discuss its second quarter financial results and provide forward-looking guidance for its third quarter. A live webcast of the call will be available online at investors.micron.com. A webcast replay will be available for one year after the call. We encourage you to visit our website at micron.com throughout the quarter for the most current information on the company, including information on financial conferences that we may be attending. You can also follow us on LinkedIn, X (@MicronTech) and YouTube (@MicronTechnology). About Micron Technology, Inc. Micron Technology, Inc. is an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications that unleash opportunities -- from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com. (C) 2026 Micron Technology, Inc. All rights reserved. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners. Forward-Looking Statements This press release contains forward-looking statements regarding our industry, our strategic position, our customers, including customer demand, and our financial and operating performance, including our guidance for the third quarter of 2026, as well as our investments in manufacturing and goals for such investments. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities and Exchange Commission, including our most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at investors.micron.com/risk-factor. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements to conform these statements to actual results. (1)GAAP represents U.S. Generally Accepted Accounting Principles.(2)Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings; adjusted free cash flow; investments in capital expenditures, net; and business outlook. Further information regarding Micron's use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release.MICRON TECHNOLOGY, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(In millions, except per share amounts)(Unaudited)2nd Qtr.1st Qtr.2nd Qtr.Six Months EndedFebruary 26,2026November 27,2025February 27,2025February 26,2026February 27,2025Revenue$23,860$13,643$8,053$37,503$16,762Cost of goods sold6,1055,9975,09012,10210,451Gross margin17,7557,6462,96325,4016,311Research and development1,2501,1718982,4211,786Selling, general, and administrative344337285681573Other operating (income) expense, net2627285Operating income16,1356,1361,77322,2713,947Interest income155139108294215Interest expense(32)(74)(112)(106)(230)Other non-operating income (expense), net(98)(140)(11)(238)(22)16,1606,0611,75822,2213,910Income tax (provision) benefit(2,371)(829)(177)(3,200)(460)Equity in net income (loss) of equity method investees(4)8243Net income$13,785$5,240$1,583$19,025$3,453Earnings per shareBasic$12.25$4.66$1.42$16.91$3.10Diluted12.074.601.4116.683.08Number of shares used in per share calculationsBasic1,1261,1251,1151,1251,113Diluted1,1421,1381,1231,1401,123MICRON TECHNOLOGY, INC.CONSOLIDATED BALANCE SHEETS(In millions)(Unaudited)As ofFebruary 26,2026November 27,2025August 28,2025AssetsCash and equivalents$13,908$9,731$9,642Short-term investments681587665Receivables17,31410,1849,265Inventories8,2678,2058,355Other current assets1,243958914Total current assets41,41329,66528,841Long-term marketable investments2,0381,6971,629Property, plant, and equipment51,40848,47746,590Operating lease right-of-use assets684700736Intangible assets468465453Deferred tax assets680641616Goodwill1,1501,1501,150Other noncurrent assets3,6683,1762,783Total assets$101,509$85,971$82,798Liabilities and equityAccounts payable and accrued expenses$10,997$9,796$9,649Current debt585569560Other current liabilities2,7141,6951,245Total current liabilities14,29612,06011,454Long-term debt9,55711,18714,017Noncurrent operating lease liabilities656669701Noncurrent unearned government incentives1,0021,1481,018Other noncurrent liabilities3,5392,1011,443Total liabilities29,05027,16528,633Commitments and contingenciesShareholders' equityCommon stock127127127Additional capital14,09213,61013,339Retained earnings66,82453,34448,583Treasury stock(8,502)(8,152)(7,852)Accumulated other comprehensive income (loss)(82)(123)(32)Total equity72,45958,80654,165Total liabilities and equity$101,509$85,971$82,798MICRON TECHNOLOGY, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited)Six Months EndedFebruary 26,2026February 27,2025Cash flows from operating activitiesNet income$19,025$3,453Adjustments to reconcile net income to net cash provided by operating activities:Depreciation expense and amortization of intangible assets4,4984,109Stock-based compensation599469Change in operating assets and liabilities:Receivables(8,298)338Inventories88(132)Accounts payable and accrued expenses928(714)Other current liabilities1,469(321)Other noncurrent liabilities2,106195Other(101)(211)Net cash provided by operating activities20,3147,186Cash flows from investing activitiesExpenditures for property, plant, and equipment(11,776)(7,261)Purchases of available-for-sale securities(1,120)(816)Proceeds from government incentives2,2561,028Proceeds from maturities and sales of available-for-sale securities701874Other(180)(125)Net cash used for investing activities(10,119)(6,300)Cash flows from financing activitiesRepayments of debt(4,626)(2,626)Repurchases of common stock - repurchase program(650)--Repurchases of common stock - withholdings on employee equity awards(545)(252)Payments of dividends to shareholders(266)(261)Proceeds from issuance of debt--2,682Other175131Net cash used for financing activities(5,912)(326)Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash5(49)Net increase in cash, cash equivalents, and restricted cash4,288511Cash, cash equivalents, and restricted cash at beginning of period9,6467,052Cash, cash equivalents, and restricted cash at end of period$13,934$7,563MICRON TECHNOLOGY, INC.RECONCILIATION OF GAAP TO NON-GAAP MEASURES(In millions, except per share amounts)2nd Qtr.1st Qtr.2nd Qtr.February 26,2026November 27,2025February 27,2025GAAP gross margin$17,755$7,646$2,963Stock-based compensation12110789Other----1Non-GAAP gross margin$17,876$7,753$3,053GAAP operating expenses$1,620$1,510$1,190Stock-based compensation(176)(173)(144)Other(23)(3)--Non-GAAP operating expenses$1,421$1,334$1,046GAAP operating income$16,135$6,136$1,773Stock-based compensation297280233Other2331Non-GAAP operating income$16,455$6,419$2,007GAAP net income$13,785$5,240$1,583Stock-based compensation297280233Loss on debt prepayments471304Other25(20)--Estimated tax effects of above and other tax adjustments(133)(148)(37)Non-GAAP net income$14,021$5,482$1,783GAAP weighted-average common shares outstanding - Diluted1,1421,1381,123Adjustment for stock-based compensation71020Non-GAAP weighted-average common shares outstanding - Diluted1,1491,1481,143GAAP diluted earnings per share$12.07$4.60$1.41Effects of the above adjustments0.130.180.15Non-GAAP diluted earnings per share$12.20$4.78$1.56RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued2nd Qtr.1st Qtr.2nd Qtr.February 26,2026November 27,2025February 27,2025GAAP net cash provided by operating activities$11,903$8,411$3,942Expenditures for property, plant, and equipment(6,387)(5,389)(4,055)Proceeds from sales of property, plant, and equipment567Proceeds from government incentives1,378878963Investments in capital expenditures, net(5,004)(4,505)(3,085)Adjusted free cash flow$6,899$3,906$857The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income, net income, diluted shares, diluted earnings per share, and adjusted free cash flow. The non-GAAP adjustments above may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful in understanding trends and in analyzing our operating results and earnings. We are providing this information to investors to assist in performing analysis of our operating results. When evaluating performance and making decisions on how to allocate our resources, management uses this non-GAAP information and believes investors should have access to similar data when making their investment decisions. We believe these non-GAAP financial measures increase transparency by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced comparison of our operating results between periods and with peer companies. The presentation of these adjusted amounts varies from amounts presented in accordance with U.S. GAAP and therefore may not be comparable to amounts reported by other companies. Our management excludes the following items as applicable in analyzing our operating results and understanding trends in our earnings: Stock-based compensation;Gains and losses from debt prepayments;Restructure and asset impairments; andThe estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures, certain tax matters related to prior fiscal periods, and significant changes in tax law. The divergence between our GAAP and non-GAAP income tax (provision) benefit relates to the difference in our GAAP and non-GAAP estimated annual effective tax rates, which are computed separately.Non-GAAP diluted shares are adjusted for the impact of additional shares resulting from the exclusion of stock-based compensation from non-GAAP income. MICRON TECHNOLOGY, INC.RECONCILIATION OF GAAP TO NON-GAAP OUTLOOKFQ3-26GAAP OutlookAdjustmentsNon-GAAP OutlookRevenue$33.5 billion ± $750 million--$33.5 billion ± $750 millionGross marginApproximately 81%--AApproximately 81%Operating expensesApproximately $1.60 billion$200 millionBApproximately $1.40 billionDiluted earnings per share(1)$18.90 ± $0.40$0.25A, B, C$19.15 ± $0.40Non-GAAP Adjustments(in millions)AStock-based compensation - cost of goods sold$141BStock-based compensation - research and development132BStock-based compensation - sales, general, and administrative68CTax effects of the above items and other tax adjustments(52)$289(1)GAAP earnings per share based on approximately 1.14 billion diluted shares and non-GAAP earnings per share based on approximately 1.15 billion diluted shares.The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, additional restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control. | Contacts:
Satya Kumar
Investor Relations
satyakumar@micron.com
(408) 450-6199
Mark Plungy
Media Relations
mplungy@micron.com
(408) 203-2910 | |
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6.62% $51.35
