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Micron mobile segment gross margins reach 79 percent in second fiscal quarter
Friday, March 20, 2026 at 04:30 PM
Micron reported a significant expansion in its mobile segment during the second fiscal quarter of 2026. The mobile division's gross margin increased from 15% in 1QF25 to 79% in 2QF26, surpassing the gross margins of the HBM segment. The mobile business now contributes as much revenue as the cloud segment, with an incremental gross profit fall-through of 110%.
Context
On March 18, 2026, Micron reported record-breaking results for its second fiscal quarter, headlined by an extraordinary surge in its Mobile and Client Business Unit. The segment’s gross margins skyrocketed from 15% in the same period last year to 79% this quarter, driven by a 110% incremental profit fall-through. This performance allowed mobile revenue to reach $7.71 billion, effectively matching the scale of the Cloud Memory segment. CEO Sanjay Mehrotra stated during the earnings call that "AI hasn’t just increased demand for memory — it has fundamentally recast memory as a defining strategic asset in the AI era."
This margin expansion reflects a broader structural shift as AI integration moves from data centers to edge devices. Micron's consolidated revenue nearly tripled year-over-year to $23.86 billion, significantly exceeding Wall Street's expectations of $19.10 billion. With DRAM prices increasing in the mid-60s percentage range due to tight supply, the company has declared a 30% increase in its quarterly dividend, signaling high confidence in the sustainability of this AI-driven growth cycle into fiscal 2027.
Sources (4)
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