01—Abstract
Summary
Summary of the 10-Q filed March 21, 2025. Cited figures are marked; the original filing is the authoritative source.
Micron Technology Inc. reported strong financial performance for the second quarter and first six months of fiscal year 2025, demonstrating significant recovery and growth compared to the prior year.
Revenue surged by 38% year-over-year for the quarter, reaching $8.05 billiona, and by 59% for the six-month period to $16.76 billion. This growth was primarily driven by substantial increases in average selling prices for both DRAM and NAND products, fueled by robust demand in data center markets, particularly for High Bandwidth Memory (HBM) and AI-related applications. Profitability also saw a marked improvement, with gross margins expanding significantly year-over-year to 37% in the quarter and 38% year-to-date.
Net income for the quarter was $1.58 billionb, a substantial increase from $793 million in the prior year, reflecting the favorable pricing environment and operational efficiencies. The company continues to invest heavily in capital expenditures, estimating approximately $14 billion for 2025, to support future growth and capacity expansions, particularly in the U.S. under the CHIPS Act, underscoring a strategic focus on advanced technologies and market leadership.
02—Key points
Key Highlights
- Revenue for the second quarter of fiscal year 2025 increased by 38% year-over-year to $8.05 billion, driven by strong demand and improved pricing.
- Gross margin improved significantly to 37% in the second quarter of fiscal year 2025, up from 19% in the same period last year, reflecting better pricing and cost management.
- Net income for the second quarter of fiscal year 2025 was $1.58 billion, a substantial increase from $793 million in the prior year's quarter.
- The Compute and Networking Business Unit (CNBU) saw revenue surge by 109% year-over-year, primarily due to increased sales of HBM products and improved demand in cloud server markets.
- Micron continues to invest aggressively in its future, with estimated capital expenditures of approximately $14 billion for fiscal year 2025, including significant investments in U.S. manufacturing facilities supported by the CHIPS Act.
- The company has a strong liquidity position, with $7.55 billion in cash and equivalents and $1.38 billion in short-term investments as of February 27, 2025.
- DRAM revenue increased by 47% year-over-year in the second quarter, benefiting from higher average selling prices, while NAND revenue saw an 18% increase.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Micron Technology Inc kept $0.20.
- Revenue$8.05B100.0%
- Cost of revenue−$5.09B63.2%
- Gross profit$2.96B36.8%
- Operating costs−$1.19B14.8%
- Operating income$1.77B22.0%
- Interest, other & tax−$190.0M2.4%
- Net income$1.58B19.7%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed March 21, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $8.05B$5.82B | +38.3% |
| Cost of Revenue | $5.09B$4.75B | +7.3% |
| Gross Profit | $2.96B$1.08B | +174.6% |
| R&D Expenses | $898.00M$832.00M | +7.9% |
| SG&A Expenses | $285.00M$280.00M | +1.8% |
| Operating Income | $1.77B$191.00M | +828.3% |
| Net Income | $1.58B$793.00M | +99.6% |
| EPS (Basic) | $1.42$0.72 | +97.2% |
| EPS (Diluted) | $1.41$0.71 | +98.6% |
| Shares Outstanding (Basic) | 1.11B1.10B | +1.0% |
| Shares Outstanding (Diluted) | 1.12B1.11B | +0.8% |
05—Questions
Frequently Asked Questions
What were the main drivers of Micron's revenue growth in the second quarter of fiscal year 2025?
Micron's revenue growth in the second quarter of fiscal year 2025 was primarily driven by significant increases in the average selling prices (ASPs) for both DRAM and NAND products. This was supported by strong demand, particularly in data center markets, including High Bandwidth Memory (HBM) and AI-related applications, which offset a slight decrease in DRAM bit shipments and a decline in NAND ASPs due to market conditions.
How has Micron's profitability improved compared to the previous year?
Micron's profitability has substantially improved year-over-year. Gross margin expanded significantly to 37% in the second quarter of fiscal year 2025, compared to 19% in the same quarter of fiscal year 2024. This improvement is attributed to higher ASPs for both DRAM and NAND, cost reductions in NAND manufacturing, and a favorable product mix leaning towards high-margin cloud products like HBM. Consequently, net income for the quarter more than doubled year-over-year.
What are Micron's key investments and capital expenditure plans for the near future?
Micron is making significant investments to bolster its manufacturing capabilities and technological leadership. The company estimates capital expenditures of approximately $14 billion for fiscal year 2025. Key initiatives include expanding DRAM wafer capacity in the U.S. under the CHIPS Act, with planned facilities in Idaho and New York, and enhancing advanced packaging capacity globally, such as the new HBM facility in Singapore. These investments are aimed at meeting projected memory demand in the latter half of the decade and maintaining market share.
What is the company's liquidity position and outlook?
Micron maintains a strong liquidity position, with total cash, cash equivalents, and short-term investments amounting to approximately $8.22 billion as of February 27, 2025. The company expects its cash generated from operations, government incentives, and available financing to be sufficient to meet its obligations and capital expenditure requirements for at least the next 12 months and beyond. They also have a new five-year, $3.50 billion unsecured Revolving Credit Facility in place.
06—Continue