10-QPeriod: Q3 FY2025

MICRON TECHNOLOGY INC Quarterly Report for Q3 Ended May 29, 2025

Filed June 26, 2025For Securities:MU

Summary

Micron Technology, Inc. reported a strong third quarter for fiscal year 2025, demonstrating significant recovery and growth. Revenue surged to $9.301 billion, a substantial 37% increase year-over-year, driven by robust demand and improved average selling prices, particularly in DRAM. Net income reached an impressive $1.885 billion, a significant improvement from $332 million in the prior year quarter, translating to diluted earnings per share of $1.68. The company's operational performance highlights a dramatic turnaround from the previous year, with gross margins expanding significantly to 38% from 27% year-over-year. This expansion is attributed to strong pricing for DRAM, increased bit shipments, and cost reductions, especially with the growing contribution of high-margin products like High Bandwidth Memory (HBM). The Compute and Networking Business Unit (CNBU) was a standout performer, almost tripling its revenue year-over-year and significantly boosting operating income, underscoring the company's strategic alignment with AI growth opportunities. Financially, Micron maintained a healthy liquidity position with over $10 billion in cash and cash equivalents. The company also continues to invest heavily in future growth, with significant capital expenditures planned, supported by government incentives such as the CHIPS Act. Despite ongoing legal challenges and industry competition, Micron's operational and financial performance in the third quarter of fiscal year 2025 indicates a strong recovery and positive momentum.

Financial Highlights

51 data points
Beta

Revenue

$9.30B

37.7% Gross Margin

Net Income

$1.89B

20.3% Net Margin

EPS (Diluted)

$1.68

Total Assets

$78.40B

Cash & Equivalents

$10.17B

Free Cash Flow

$1.67B

Financial Statements
Beta
Revenue$9.30B
Cost of Revenue$5.79B
Gross Profit$3.51B
R&D Expenses$965.00M
SG&A Expenses$318.00M
Operating Income$2.17B
Net Income$1.89B
EPS (Basic)$1.69
EPS (Diluted)$1.68
Shares Outstanding (Basic)1.12B
Shares Outstanding (Diluted)1.13B

Key Highlights

  • 1Revenue for the third quarter of fiscal year 2025 was $9.301 billion, a 37% increase compared to the prior year's third quarter.
  • 2Net income for the quarter was $1.885 billion, a substantial improvement from $332 million in the same period last year.
  • 3Diluted earnings per share (EPS) stood at $1.68, up from $0.30 in the prior year quarter.
  • 4Gross margin significantly improved to 38% in Q3 FY2025, compared to 27% in Q3 FY2024, reflecting improved pricing and cost efficiencies.
  • 5The Compute and Networking Business Unit (CNBU) showed exceptional growth, with revenue increasing 97% year-over-year, driven by HBM products and data center demand.
  • 6Cash and cash equivalents stood at $10.163 billion as of May 29, 2025, indicating strong liquidity.
  • 7The company is making substantial investments in future capacity, with significant capital expenditures planned for 2025, supported by CHIPS Act funding.

Frequently Asked Questions

The substantial increase in revenue and profit was primarily driven by a strong recovery in the memory market, particularly for DRAM products. This was fueled by improved average selling prices (ASPs) and an increase in bit shipments. The growing demand for High Bandwidth Memory (HBM) in AI applications and data centers, coupled with manufacturing cost reductions and a favorable product mix, significantly boosted gross margins and overall profitability.

Micron is making significant capital investments in advanced memory manufacturing, particularly for High Bandwidth Memory (HBM), which is crucial for AI applications. The company is expanding its capacity in the U.S. and other regions, supported by substantial government incentives like the CHIPS Act. These investments are aimed at meeting the projected demand for memory and storage solutions needed to power AI and other data-intensive applications.

Despite the positive results, Micron faces several risks. These include the inherent volatility in semiconductor average selling prices, intense industry competition, potential supply chain disruptions, geopolitical uncertainties, and ongoing legal and patent litigation. The company also faces risks related to the successful execution of its large capital expenditure plans and the evolving landscape of government incentives and regulations.

The Compute and Networking Business Unit (CNBU) has been a major growth driver, significantly increasing revenue and operating income, largely due to HBM and data center demand. While other segments like Storage (SBU), Mobile (MBU), and Embedded (EBU) also saw varied performance, the company is strategically reorganizing its business units into four new segments (Cloud Memory, Core Data Center, Mobile and Client, and Automotive and Embedded) to better align with market needs, particularly AI growth opportunities, and enhance customer engagement. This new structure will be reported starting with the 2025 Annual Report.