01—Abstract
Summary
Summary of the 10-K filed October 3, 2025. Cited figures are marked; the original filing is the authoritative source.
Micron Technology, Inc. (MU) reported a strong financial year, driven by significant demand for its memory and storage solutions, particularly from the accelerating AI sector.
Total revenue saw a substantial increase of 49% year-over-year to $37.38 billiona, primarily fueled by a robust performance in DRAM, which grew 62% due to improved average selling prices and higher bit shipments. The company's strategic shift towards high-value segments like High Bandwidth Memory (HBM) for data centers has paid off, with the Cloud Memory Business Unit (CMBU) revenue surging by 257% and becoming the largest segment. Micron's operational efficiency also improved, with consolidated gross margins expanding significantly to 40% from 22% in the prior year, attributed to higher selling prices, a favorable product mix including HBM, and cost reductions.
The company continues to invest heavily in manufacturing capacity and technology, including significant expansion plans in the U.S. supported by the CHIPS Act, aiming to meet future demand and maintain its competitive edge. Despite ongoing risks in the highly competitive semiconductor market, including pricing volatility and geopolitical factors, Micron appears well-positioned to capitalize on the growth trends in AI and data-centric applications.
02—Key points
Key Highlights
- Total revenue increased by 49% year-over-year to $37.38 billion, driven by strong DRAM and NAND sales.
- The Cloud Memory Business Unit (CMBU) saw a remarkable 257% revenue increase, becoming the largest segment, fueled by AI-driven demand for HBM and server DRAM.
- Consolidated gross margin improved significantly to 40% from 22% in the prior year, reflecting higher average selling prices and cost efficiencies.
- Micron is making substantial capital investments in expanding manufacturing capacity in the U.S. under the CHIPS Act, with plans for new fabs in Idaho and New York.
- The company introduced its first DRAM node incorporating EUV lithography (1γ node) and is advancing HBM4 technology, with samples delivered for next-generation AI platforms.
- Despite strong performance, Micron faces continued risks related to pricing volatility, intense competition, supply chain constraints, and geopolitical tensions.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Micron Technology Inc kept $0.23.
- Revenue$37.38B100.0%
- Cost of revenue−$22.50B60.2%
- Gross profit$14.87B39.8%
- Operating costs−$5.10B13.7%
- Operating income$9.77B26.1%
- Interest, other & tax−$1.23B3.3%
- Net income$8.54B22.8%
Where FY2025 revenue went
$37.38B- Cost of revenue: $22.50B, 60% of revenue
- Net income: $8.54B, 23% of revenue
- R&D: $3.80B, 10% of revenue
- SG&A: $1.21B, 3.2% of revenue
- Interest, other & tax: $1.23B, 3.3% of revenue
Kept 23% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed October 3, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $37.38B$25.11B | +48.9% |
| Cost of Revenue | $22.50B$19.50B | +15.4% |
| Gross Profit | $14.87B$5.61B | +165.0% |
| R&D Expenses | $3.80B$3.43B | +10.7% |
| SG&A Expenses | $1.21B$1.13B | +6.7% |
| Operating Income | $9.77B$1.30B | +649.2% |
| Net Income | $8.54B$778.00M | +997.6% |
| EPS (Basic) | $7.65$0.70 | +992.9% |
| EPS (Diluted) | $7.59$0.70 | +984.3% |
| Shares Outstanding (Basic) | 1.12B1.10B | +1.0% |
| Shares Outstanding (Diluted) | 1.13B1.12B | +0.6% |
05—Questions
Frequently Asked Questions
What were the primary drivers of Micron's revenue growth in the reported fiscal year?
Micron's revenue growth was primarily driven by a significant increase in DRAM sales, up 62%, due to a substantial improvement in average selling prices and higher bit shipments. This was further boosted by strong demand from the AI sector, leading to a surge in revenue from the Cloud Memory Business Unit (CMBU), which includes High Bandwidth Memory (HBM) products.
How is Micron positioning itself to capitalize on the AI trend?
Micron is strategically focusing on High Bandwidth Memory (HBM) and other high-performance memory solutions for data centers and AI applications. The company is investing heavily in expanding its manufacturing capacity, particularly for advanced products like HBM, and is advancing its HBM4 technology to support next-generation AI platforms. The reorganization into market-focused business units, including the CMBU, also reflects this strategic alignment with AI growth opportunities.
What are the key risks and challenges facing Micron?
Micron operates in a highly competitive semiconductor market characterized by significant pricing volatility. Key risks include intense competition, potential oversupply, supply chain disruptions, geopolitical risks (such as trade restrictions impacting China), the need for continuous technological innovation, and the inherent capital intensity of the industry. The company also faces risks related to the successful ramp-up of new manufacturing facilities and potential intellectual property disputes.
What is the significance of the CHIPS Act funding for Micron?
The CHIPS Act funding, totaling up to $6.4 billion in direct grants, is crucial for Micron's ambitious plans to expand its leading-edge memory manufacturing capacity in the United States. This funding supports the construction of new fabs in Idaho and New York, modernizing facilities, and enhancing advanced packaging capabilities, thereby strengthening Micron's domestic production and competitiveness.
06—Continue