Micron Stock Investors Just Got Spectacular News From CEO Sanjay Mehrotra

By Danny Vena, CPA – Mar 18, 2026 at 7:16PM ESTKey PointsMicron delivered record-setting, triple-digit growth across the board. The company's artificial intelligence (AI) chip business is on fire, fueling robust revenue and profit growth.Micron is predicting another record-breaking performance in Q3.After operating behind the scenes for years, Micron Technology (MU +0.21%) has been thrust into the limelight. The company's flash memory and storage processors are critical components in graphics processing units (GPUs) and other chips that underpin artificial intelligence (AI), fueling unprecedented demand. As such, investors were sitting on the edge of their seats on Wednesday afternoon, awaiting the results of the chipmaker's quarterly financial report. The say Micron delivered is something of an understatement. The company generated record revenue, gross margin, earnings per share (EPS), and cash flow -- and is promising to smash those records again next quarter. Image source: The Motley Fool. Blockbuster results ... and more Micron reported the results of its fiscal 2026 second quarter (ended Feb. 26), and both sales and profits far outpaced expectations. The company generated revenue of $23.9 billion, up 196% year over year and 75% sequentially. This resulted in adjusted EPS of $12.20, which rose 155%. For context, analysts' consensus estimates were calling for revenue of $20 billion and EPS of $9.19, so Micron simply blew the doors off expectations. CEO Sanjay Mehrotra said (emphasis mine), "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." Its cloud memory segment led the charge, as revenue of $7.7 billion jumped 163%. Revenue from Micron's core data center business jumped 211% to $5.7 billion, while revenue from its mobile and client business segment climbed 245% to $7.7 billion. Last but not least was the automotive and embedded segment, with revenue of $2.7 billion, up 162%. ExpandNASDAQ: MUMicron TechnologyToday's Change(0.21%) $0.97Current Price$462.66Key Data PointsMarket Cap$520BDay's Range$458.36 - $471.2552wk Range$61.54 - $471.34Volume2.2MAvg Vol35MGross Margin45.53%Dividend Yield0.10% Micron's soaring profits were driven higher by significant margin expansion. The company's gross margin jumped 3,760 basis points to 74.4% from 36.8% in the prior-year quarter. Micron's cash generation was equally impressive, as operating cash flow of $11.9 billion increased 202% year over year and 41% sequentially. Management is predicting that its accelerating growth will continue to gain steam. For the third quarter, Micron is guiding to revenue of $33.5 billion, representing year-over-year growth of 260%. The company's margin expansion is expected to continue, soaring to 81% at the midpoint of its guidance, driving adjusted EPS of $19.15, a 10-fold increase. That's an order of magnitude ahead of Wall Street's expectations for revenue of $23.3 billion and EPS of $10.77. The company cited "confidence in the sustained strength of our business" as the rationale behind a 30% increase in Micron's quarterly dividend, which increased to $0.15 per share, payable on April 15 to shareholders of record as of March 30. That works out to a yield of 0.10%, but that's a function of the soaring stock price, which has surged 348% over the past year and 715% over the past three years. Not to worry, though: Micron is spending less than 5% of its profits to fund the dividend, so there are plenty of resources for future increases. Notwithstanding the blistering results, investors remain wary about the future of AI adoption, despite all the evidence to the contrary. That's why the stock is trading for less than 13 times forward earnings. For investors who believe, like I do, that the AI revolution will continue, Micron stock is a buy.Read NextMar 18, 2026 •By Howard SmithStock Market Today, March 18: Micron Technology Holds Steady as Investors React to Key Earnings Report on AI Memory DemandMar 18, 2026 •By David Jagielski, CPAWill Micron Technology Be the Next Tech Stock to Reach a $1 Trillion Market Cap?Mar 17, 2026 •By Eric TrieStock Market Today, March 17: Micron Advances Ahead of Earnings as Tight HBM Supply Lifts AI Memory OutlookMar 16, 2026 •By Danny Vena, CPAShould You Buy Micron Stock Before Thursday? Here's What History and Wall Street SuggestMar 16, 2026 •By Harsh ChauhanPrediction: Micron Technology Stock Will Soar Higher After March 18Mar 16, 2026 •By Keithen DruryBetter Chip Stock to Buy: Micron or Taiwan Semiconductor?About the AuthorDanny Vena, CPA, is a contributing Motley Fool technology analyst specializing in artificial intelligence, cloud computing, semiconductors, software, cybersecurity, and consumer electronics. He is a Certified Public Accountant and previously worked as a controller and accountant across small and midsize businesses. Danny also served 13 years in the U.S. Army. He holds a bachelor’s degree in accounting from the University of Phoenix.TMFLifeIsGoodX@dannyvenaStocks MentionedMicron TechnologyNASDAQ: MU$462.66(+0.21%)+$0.97*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.