The latest financial information available is Micron Technology's Q2 fiscal year 2026 earnings report, which ended on February 26, 2026, and was released on March 18, 2026. The fiscal year 2025 10-K report is also available. I will prioritize using the most recent Q2 2026 data where available, and the fiscal year 2025 10-K for annual figures or segment breakdowns if not provided in the Q2 2026 report.

The Business Model (How They Make Money)

Micron Technology is a company that designs, develops, and makes specialized computer memory and storage products. Think of them as a key supplier for the "brains" and "storage lockers" of electronic devices all around us. They essentially make two main types of chips:

• DRAM (Dynamic Random-Access Memory): This is the "working memory" that your computer, smartphone, or gaming console uses to run programs and access data quickly. It's like your brain's short-term memory – fast and crucial for current tasks. Micron sells these chips for various uses, including computers, mobile devices, and the powerful systems found in data centers that power cloud services and artificial intelligence (AI).
• NAND (Negative-AND) Flash Memory: This is the "storage memory" that keeps your data safe even when the power is off. It's found in things like solid-state drives (SSDs) for laptops, USB drives, and the storage inside your smartphone. It's like your brain's long-term memory or a digital filing cabinet.

Micron makes money by selling these DRAM and NAND products to a wide range of customers, including original equipment manufacturers (OEMs) who build devices like PCs, smartphones, and servers.

In the second quarter of fiscal year 2026, Micron reported total revenue of $23.86 billion. The majority of their revenue came from DRAM products, which accounted for $18.8 billion (79% of total revenue), while NAND products generated $5.0 billion (21% of total revenue). For the fiscal year ending August 28, 2025, their total revenue was $37.378 billion, with DRAM products generating $28.58 billion (77.07% of total revenue) and NAND products generating $8.50 billion (22.93% of total revenue).

The Metrics That Matter Most

Here are the most important numbers to watch for Micron Technology and why:

1. Revenue: This simply measures the total sales the company made over a period. For Micron, watching revenue tells you how much demand there is for their memory and storage chips. Because the semiconductor industry can be quite "cyclical," meaning sales can go up and down dramatically with technology trends and economic health, a growing revenue figure signals that more customers are buying their products, which is a good sign for the company's overall health and market position. Micron's revenue for the second quarter of fiscal year 2026 was $23.86 billion, a significant increase from the prior year.

2. Gross Margin: This metric shows how much profit Micron makes from selling its chips after subtracting the direct costs of making those chips (like raw materials and manufacturing labor). It's expressed as a percentage of revenue. A higher gross margin means they're doing a better job of producing their chips efficiently and/or getting good prices for them. In a memory market where prices can fluctuate, a strong and improving gross margin indicates that Micron has good control over its production costs and can command better prices for its advanced memory products. Micron's GAAP gross margin for Q2 fiscal year 2026 was 74.4%.

3. R&D Expenses (Research & Development Expenses): This number represents how much money Micron spends on creating new and better memory and storage technologies. In the fast-paced world of semiconductors, innovation is key. Investing heavily in R&D is crucial for Micron to stay competitive, develop next-generation chips (like those used in AI), and maintain its technological leadership. This spending directly impacts their future ability to offer cutting-edge products that customers will want to buy.

4. CapEx (Capital Expenditures): This refers to the money Micron spends on buying, maintaining, or upgrading its physical assets, like manufacturing plants and equipment. Making memory chips is a very capital-intensive business, meaning it requires massive investments in specialized factories. High CapEx indicates that Micron is investing in its production capacity and technology, which is essential for meeting future demand and staying efficient. For the second quarter of 2026, investments in capital expenditures, net, were $5.0 billion. Their CapEx outlook for fiscal year 2026 was raised to over $25 billion.

5. Free Cash Flow: This metric shows the cash a company has left over after paying for its day-to-day operations and all its capital investments (like building new factories). It's a really important indicator of a company's financial health because it represents the cash that can be used for things like paying down debt, buying back shares, or issuing dividends. For a capital-intensive business like Micron, generating consistent free cash flow demonstrates their ability to fund their growth and return value to shareholders without relying heavily on outside funding. Micron reported an adjusted free cash flow of $6.9 billion for the second quarter of fiscal year 2026.

How to Value This Company

P/Book Value per Share (Price-to-Book Value per Share):

The P/Book Value per Share ratio is a great way to figure out if Micron's stock is cheap or expensive, especially for a company like Micron that owns a lot of physical assets like factories and equipment.

Here's how it works: "Book value per share" is basically the total value of all the company's assets (what it owns) minus its liabilities (what it owes), divided by the number of shares outstanding. It's essentially the theoretical value of the company if it were to sell all its assets and pay off all its debts.

When you look at the P/Book Value per Share, you're comparing the current stock price to this underlying asset value. If the P/Book Value per Share is low (for example, below 1.0), it might suggest that the market is valuing the company less than the value of its physical assets. This could be a sign that the stock is undervalued, especially if the company's business is expected to improve. Conversely, a high P/Book Value per Share might mean the market believes the company's future earnings power, driven by its intellectual property and market position, is worth much more than its tangible assets.

For a company like Micron, which is in a cyclical industry and requires massive investments in physical plants, this metric helps investors understand if they are paying a reasonable price for the company's underlying assets, especially during different points in the memory market cycle.