Micron Technology Corporation MU will report second-quarter fiscal 2026 results on March 18 after the market closes.
The company expects fiscal second-quarter revenue of $18.7 billion (+/- $400 million). The Zacks Consensus Estimate for revenue is pegged at $19.15 billion, implying year-over-year growth of 137.8%.
Micron Technology expects adjusted earnings of $8.42 (+/-20 cents). Over the past 30 days, the consensus earnings estimate has been revised upward by 29 cents to $8.69 per share, a year-over-year increase of 457.1%.
Zacks Investment Research
Image source: Zacks Investment Research
The company has surpassed the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 14.4%.
Micron Technology, Inc. Price-eps-Surprise | Micron Technology, Inc. Micron Technology Company Quote
Our proven model predicts Micron Technology will beat earnings estimates this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of earnings beating estimates, and that’s the case here.
MU’s earnings ESP: The Earnings ESP, which represents the difference between the Most Accurate Estimate ($9.19 per share) and the Zacks Consensus Estimate ($8.69 per share), is +5.69%. You can discover the best stocks to buy or sell before they report with our Earnings ESP filter.
MU’s Zacks Rank: MU carries a Zacks Rank #1. you can see The complete list of today’s Zacks #1 Rank stocks is here.
Micron Technology’s second-quarter results are expected to reflect growing demand for memory chips, driven significantly by the growing adoption of artificial intelligence (AI) servers powered by graphics processing units (GPUs). As data center operators expand their infrastructure to support generative artificial intelligence and large language models, memory chips have become an important component. Surge in demand for artificial intelligence-driven technology is likely to boost Micron Technology’s revenue in the current quarter.
Another positive factor is the improvement in supply and demand dynamics in the memory chip market. For several consecutive quarters, MU faced the headwinds of excess inventory across various industries, which severely impacted its financial results. However, conditions have improved over the past year, causing the price of DRAM chips to rise. According to the Zacks Consensus Estimate, second-quarter DRAM revenue is expected to reach $15.03 billion, representing strong year-over-year growth of 145.5%.
Micron Technology has achieved the industry’s first mass production of 1β DRAM, HBM3E and 232-layer/368-layer NAND, preparing for next-generation demand in the second quarter of fiscal 2026. MU also benefited from an improving memory pricing environment, driven by industry discipline, supply constraints and a richer product portfolio.
However, inflationary pressures and macroeconomic uncertainty have dampened consumer spending, potentially reducing demand for memory chips in key markets such as smartphones and personal computers. Micron Technology’s heavy reliance on China poses risks amid ongoing trade tensions between the United States and China.
Micron Technology shares have soared 302.2% over the past year, outperforming the Zacks Computer – Integrated Systems industry’s gain of 101.8%. The stock has also outperformed major semiconductor companies, including TSMC TSM, Broadcom AVGO and NVIDIA NVIDIA. The share prices of TSMC, Broadcom and NVIDIA rose by 93.4%, 71.8% and 50.5% respectively.
Zacks Investment Research
Image source: Zacks Investment Research
From a valuation perspective, MU appears to be trading at a discount to the industry and well below its average. Based on the price-to-earnings ratio (P/E) for the next 12 months, the company’s stock price is currently 9.52 times, which is significantly lower than the industry’s 15.49 times.
Zacks Investment Research
Image source: Zacks Investment Research
MU stock also trades at a discount compared to Broadcom, Nvidia, and TSMC. Currently, the price-to-earnings ratios of Broadcom, Nvidia and TSMC are 28.53, 22.75 and 22.73 respectively.
Micron Technology is at the center of multiple transformative technology trends. The company’s exposure to artificial intelligence, high-performance data centers, autonomous vehicles and the industrial Internet of Things gives it a unique position for sustainable long-term growth. As the adoption of artificial intelligence accelerates, demand for advanced memory solutions such as DRAM and NAND is soaring. Micron Technology’s investments in next-generation DRAM and 3D NAND ensure it remains competitive in delivering the performance required for modern computing.
The company’s diversification strategy has also begun to bear fruit. Micron Technology has created a more stable revenue base by shifting its focus from the volatile consumer electronics market to resilient vertical markets such as automotive and enterprise IT.
Micron Technology is also benefiting from a strong wave of high-bandwidth memory (HBM) demand. Its HBM3E product has attracted significant interest due to its superior energy efficiency and bandwidth, making it ideally suited for artificial intelligence workloads. Evolving new technology trends and diversification strategies may help MU’s growth in the long run.
Micron Technology’s fundamentals remain strong and its position in the AI-driven memory market is solid. The company offers impressive long-term growth potential, maintains a disciplined approach to innovation, and trades at a discount relative to its peers. Given these factors, it would be prudent to accumulate MU stock ahead of its fiscal 2026 second-quarter results.
Want the latest recommendations from Zacks Investment Research? Today you can download the 7 best stocks for the next 30 days. Click to get this free report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
