01—Abstract
Summary
Summary of the 10-Q filed June 26, 2025. Cited figures are marked; the original filing is the authoritative source.
Micron Technology, Inc. reported a strong third quarter for fiscal year 2025, demonstrating significant recovery and growth.
Revenue surged to $9.301 billiona, 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 billionb 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.
02—Key points
Key Highlights
- Revenue for the third quarter of fiscal year 2025 was $9.301 billion, a 37% increase compared to the prior year's third quarter.
- Net income for the quarter was $1.885 billion, a substantial improvement from $332 million in the same period last year.
- Diluted earnings per share (EPS) stood at $1.68, up from $0.30 in the prior year quarter.
- Gross margin significantly improved to 38% in Q3 FY2025, compared to 27% in Q3 FY2024, reflecting improved pricing and cost efficiencies.
- The Compute and Networking Business Unit (CNBU) showed exceptional growth, with revenue increasing 97% year-over-year, driven by HBM products and data center demand.
- Cash and cash equivalents stood at $10.163 billion as of May 29, 2025, indicating strong liquidity.
- The company is making substantial investments in future capacity, with significant capital expenditures planned for 2025, supported by CHIPS Act funding.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Micron Technology Inc kept $0.20.
- Revenue$9.30B100.0%
- Cost of revenue−$5.79B62.3%
- Gross profit$3.51B37.7%
- Operating costs−$1.34B14.4%
- Operating income$2.17B23.3%
- Interest, other & tax−$284.0M3.1%
- Net income$1.89B20.3%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed June 26, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $9.30B$6.81B | +36.6% |
| Cost of Revenue | $5.79B$4.98B | +16.3% |
| Gross Profit | $3.51B$1.83B | +91.5% |
| R&D Expenses | $965.00M$850.00M | +13.5% |
| SG&A Expenses | $318.00M$291.00M | +9.3% |
| Operating Income | $2.17B$719.00M | +201.7% |
| Net Income | $1.89B$332.00M | +467.8% |
| EPS (Basic) | $1.69$0.30 | +463.3% |
| EPS (Diluted) | $1.68$0.30 | +460.0% |
| Shares Outstanding (Basic) | 1.12B1.11B | +1.0% |
| Shares Outstanding (Diluted) | 1.13B1.12B | +0.2% |
05—Questions
Frequently Asked Questions
What drove the significant revenue and profit increase in Q3 FY2025?
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.
How is Micron investing in future growth, especially concerning AI?
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.
What are the key risks or challenges facing Micron despite this strong performance?
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.
How has Micron's business segment performance evolved, and what is the impact of the recent reorganization?
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.
06—Continue