Why Micron Stock Crashed After Blowout Earnings

Micron (NASDAQ: MU) reported a almighty net bushed past night, earning $12.20 per stock connected $23.9 cardinal successful fiscal Q2 2026 revenue, wherever Wall Street expected lone $8.79 per stock and $19.2 cardinal successful sales.

The banal promptly crashed. As of 9:50 a.m. ET, Micron banal is down 5.8%.

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Yes, you work that right. Micron came adjacent to tripling its income twelvemonth implicit twelvemonth (fiscal Q2 2025 income were lone $8 billion). Non-GAAP net soared 682% to $12.20, and GAAP modular net did adjacent better, rising 756% to $12.07 per share.

CEO Sanjay Mehrotra said, "Micron acceptable caller records crossed revenue, gross margin, EPS, and escaped currency travel successful fiscal Q2," confirming request for machine representation products remains strong, and proviso tight. He promised to acceptable adjacent much "significant" records successful Q3 -- and successful objection of this confidence, Micron raised its dividend by 30%.

Investors sold disconnected Micron banal anyway.

Micron gave guidance for $33.5 cardinal successful gross this coming 4th (plus oregon minus $750 million). That's 260% much gross than the institution collected successful fiscal Q3 2025, and astir 50% much than Wall Street analysts are forecasting. The institution said quarterly GAAP net should beryllium $18.90 per share, positive oregon minus $0.40, well ahead of the $10.57 non-GAAP forecast.

At this rate, Micron is going to stroke past expert forecasts of $36.67 per stock successful nett this year, with maturation good into the triple digits. And yet, investors are valuing the banal astatine conscionable 12.2 times trailing earnings.

Granted, Micron says it volition request to grow capex. Possibly, this has investors a spot spooked. But astatine this price, and this maturation rate, Micron looks similar rather a bargain.

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