Micron Technology, Inc. Reports Results for the Third Quarter of Fiscal 2025

Rhea-AI Summary

Micron Technology (NASDAQ:MU) reported outstanding fiscal Q3 2025 results, achieving record revenue of $9.30 billion, up from $8.05 billion in the previous quarter and $6.81 billion year-over-year. The company posted GAAP net income of $1.89 billion ($1.68 per share) and non-GAAP net income of $2.18 billion ($1.91 per share).

Key highlights include nearly 50% sequential growth in HBM revenue and data center revenue more than doubling year-over-year. Operating cash flow reached $4.61 billion. The company declared a quarterly dividend of $0.115 per share and projects Q4 2025 revenue of $10.7 billion (±$300 million), representing 15% sequential growth.

Positive

• Record quarterly revenue of $9.30 billion, up 36.6% year-over-year
• Data center revenue more than doubled year-over-year
• HBM revenue grew nearly 50% sequentially
• Strong operating cash flow of $4.61 billion, up 85.9% year-over-year
• Projected 15% sequential revenue growth for Q4 2025
• Gross margin improved to 37.7% from 26.9% year-over-year

Negative

• Operating expenses increased 20.3% year-over-year to $1.339 billion
• High capital expenditures of $2.66 billion in Q3

Insights

Financial Analyst

Micron delivered exceptional Q3 results with record revenue, strong profit growth, and impressive Q4 guidance, driven by AI-related memory demand.

Micron's fiscal Q3 2025 results showcase remarkable financial momentum, with revenue reaching an all-time high of $9.30 billion, representing a 15.5% sequential increase and a substantial 36.6% year-over-year growth. The company's profitability metrics are equally impressive, with GAAP diluted EPS of $1.68 and non-GAAP EPS of $1.91.

The data center segment performance stands out particularly, more than doubling revenue year-over-year and achieving record quarterly figures. HBM (High Bandwidth Memory) revenue grew approximately 50% sequentially, highlighting Micron's strong positioning in the AI infrastructure market. These results demonstrate that AI-driven demand for specialized memory continues to accelerate.

Cash generation has strengthened significantly, with operating cash flow reaching $4.61 billion, an 85.9% year-over-year increase. Despite substantial capital expenditures of $2.66 billion, the company generated adjusted free cash flow of $1.95 billion, indicating a healthy balance between growth investments and financial returns.

The forward guidance for Q4 is notably optimistic, projecting sequential revenue growth of approximately 15% to $10.7 billion (±$300 million). Gross margin is expected to improve to 42% (non-GAAP), with diluted EPS forecasted at $2.50 (±$0.15), representing a substantial 30.9% sequential increase from Q3's non-GAAP EPS.

This consistent improvement across revenue, margins, and cash flow demonstrates Micron's successful execution in capturing high-value market opportunities, particularly in AI-related segments, while maintaining financial discipline. The company appears well-positioned to achieve its projection of record annual revenue with solid profitability for fiscal 2025.

Semiconductor Industry Expert

Micron's stellar performance reflects the memory industry's inflection point, with AI demand driving unprecedented growth in specialized memory segments.

Micron's exceptional Q3 results reveal a fundamental shift in the memory semiconductor landscape. The standout performance of High Bandwidth Memory (HBM) with ~50% sequential growth demonstrates the intensifying demand for specialized AI memory solutions. This acceleration aligns with the industry-wide trend of memory becoming a critical bottleneck and enabler for advanced AI workloads.

The data center segment's performance - more than doubling year-over-year - highlights how AI infrastructure deployments are creating a structural increase in memory demand density. Unlike previous memory cycles that were primarily driven by consumer devices, this cycle appears to be anchored by data center and enterprise spending, which typically offers more stable and predictable demand patterns.

Importantly, Micron is showing strength across diverse market segments. While AI-centric products lead the growth narrative, the company noted "strong sequential growth" in consumer-oriented markets. This balanced portfolio approach provides resilience against potential volatility in any single market segment.

The gross margin improvements - reaching 39% on a non-GAAP basis - reflect both favorable industry pricing dynamics and Micron's execution on advanced technology nodes. This margin expansion alongside revenue growth indicates that Micron is successfully monetizing its technology leadership rather than merely benefiting from a cyclical upturn.

The continued capital expenditure of $2.66 billion demonstrates Micron's commitment to expanding capacity for high-value memory products. This investment approach appears calibrated to address the structural growth in AI memory demand while avoiding the over-expansion that has historically led to boom-bust cycles in the memory industry.

Record revenue in fiscal Q3 with growth across end markets
Fiscal Q4 revenue projected to grow another 15% sequentially

BOISE, Idaho, June 25, 2025 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its third quarter of fiscal 2025, which ended May 29, 2025.

Fiscal Q3 2025 highlights

• Revenue of $9.30 billion versus $8.05 billion for the prior quarter and $6.81 billion for the same period last year
• GAAP net income of $1.89 billion, or $1.68 per diluted share
• Non-GAAP net income of $2.18 billion, or $1.91 per diluted share
• Operating cash flow of $4.61 billion versus $3.94 billion for the prior quarter and $2.48 billion for the same period last year

“Micron delivered record revenue in fiscal Q3, driven by all-time-high DRAM revenue including nearly 50% sequential growth in HBM revenue. Data center revenue more than doubled year-over-year and reached a quarterly record, and consumer-oriented end markets had strong sequential growth,” said Sanjay Mehrotra, Chairman, President and CEO of Micron Technology. “We are on track to deliver record revenue with solid profitability and free cash flow in fiscal 2025, while we make disciplined investments to build on our technology leadership and manufacturing excellence to satisfy growing AI-driven memory demand.”

Quarterly Financial Results
(in millions, except per share amounts)	GAAP(1)										Non-GAAP(2)
	FQ3-25			FQ2-25			FQ3-24				FQ3-25			FQ2-25			FQ3-24
Revenue	$	9,301		$	8,053		$	6,811			$	9,301		$	8,053		$	6,811
Gross margin		3,508			2,963			1,832				3,623			3,053			1,917
percent of revenue		37.7	%		36.8	%		26.9	%			39.0	%		37.9	%		28.1	%
Operating expenses		1,339			1,190			1,113				1,133			1,046			976
Operating income		2,169			1,773			719				2,490			2,007			941
percent of revenue		23.3	%		22.0	%		10.6	%			26.8	%		24.9	%		13.8	%
Net income		1,885			1,583			332				2,181			1,783			702
Diluted earnings per share		1.68			1.41			0.30				1.91			1.56			0.62

For the third quarter of 2025, investments in capital expenditures, net⁽²⁾ were $2.66 billion and adjusted free cash flow⁽²⁾ was $1.95 billion. Micron ended the quarter with cash, marketable investments, and restricted cash of $12.22 billion. On June 25, 2025, Micron’s Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on July 22, 2025, to shareholders of record as of the close of business on July 7, 2025.

Business Outlook

The following table presents Micron’s guidance for the fourth quarter of 2025:

FQ4-25	GAAP(1) Outlook	Non-GAAP(2) Outlook
Revenue	$10.7 billion ± $300 million	$10.7 billion ± $300 million
Gross margin	41.0% ± 1.0%	42.0% ± 1.0%
Operating expenses	$1.35 billion ± $20 million	$1.20 billion ± $20 million
Diluted earnings per share	$2.29 ± $0.15	$2.50 ± $0.15

Further information regarding Micron’s business outlook is included in the prepared remarks and slides, which have been posted at investors.micron.com.

Investor Webcast

Micron will host a conference call on Wednesday, June 25, 2025 at 2:30 p.m. Mountain Time to discuss its third quarter financial results and provide forward-looking guidance for its fourth quarter. A live webcast of the call will be available online at investors.micron.com. A webcast replay will be available for one year after the call. For Investor Relations and other company updates, follow us on X @MicronTech.

About Micron Technology, Inc.

We are an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, manufacturing, and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products through our Micron® and Crucial® brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.

© 2025 Micron Technology, Inc. All rights reserved. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners.

Forward-Looking Statements

This press release contains forward-looking statements regarding our technologies, demand for our products, our investments, our industry and our financial and operating results, including our expectations and guidance for the fourth quarter of 2025 and full fiscal year. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities and Exchange Commission, including our most recent Form 10-K and our upcoming Form 10-Q. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at investors.micron.com/risk-factor. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements to conform these statements to actual results.

(1)	GAAP represents U.S. Generally Accepted Accounting Principles.
(2)	Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings, adjusted free cash flow, and business outlook. Further information regarding Micron’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release.

MICRON TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share amounts) (Unaudited)
	3rd Qtr.			2nd Qtr.			3rd Qtr.			Nine Months Ended
	May 29, 2025			February 27, 2025			May 30, 2024			May 29, 2025			May 30, 2024
Revenue	$	9,301		$	8,053		$	6,811		$	26,063		$	17,361
Cost of goods sold		5,793			5,090			4,979			16,244			14,485
Gross margin		3,508			2,963			1,832			9,819			2,876
Research and development		965			898			850			2,751			2,527
Selling, general, and administrative		318			285			291			891			834
Other operating (income) expense, net		56			7			(28	)		61			(267	)
Operating income (loss)		2,169			1,773			719			6,116			(218	)
Interest income		135			108			136			350			398
Interest expense		(123	)		(112	)		(150	)		(353	)		(426	)
Other non-operating income (expense), net		(68	)		(11	)		10			(90	)		(24	)
		2,113			1,758			715			6,023			(270	)
Income tax (provision) benefit		(235	)		(177	)		(377	)		(695	)		172
Equity in net income (loss) of equity method investees		7			2			(6	)		10			(11	)
Net income (loss)	$	1,885		$	1,583		$	332		$	5,338		$	(109	)
Earnings (loss) per share
Basic	$	1.69		$	1.42		$	0.30		$	4.79		$	(0.10	)
Diluted		1.68			1.41			0.30			4.75			(0.10	)
Number of shares used in per share calculations
Basic		1,118			1,115			1,107			1,114			1,104
Diluted		1,125			1,123			1,123			1,123			1,104

MICRON TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited)
As of	May 29, 2025			February 27, 2025			August 29, 2024
Assets
Cash and cash equivalents	$	10,163		$	7,552		$	7,041
Short-term investments		648			663			1,065
Receivables		7,436			6,504			6,615
Inventories		8,727			9,007			8,875
Other current assets		945			963			776
Total current assets		27,919			24,689			24,372
Long-term marketable investments		1,402			1,375			1,046
Property, plant, and equipment		44,773			42,528			39,749
Operating lease right-of-use assets		628			637			645
Intangible assets		426			423			416
Deferred tax assets		483			552			520
Goodwill		1,150			1,150			1,150
Other noncurrent assets		1,616			1,699			1,518
Total assets	$	78,397		$	73,053		$	69,416
Liabilities and equity
Accounts payable and accrued expenses	$	8,761		$	6,176		$	7,299
Current debt		538			504			431
Other current liabilities		836			1,197			1,518
Total current liabilities		10,135			7,877			9,248
Long-term debt		15,003			13,851			12,966
Noncurrent operating lease liabilities		600			599			610
Noncurrent unearned government incentives		603			836			550
Other noncurrent liabilities		1,308			1,257			911
Total liabilities		27,649			24,420			24,285
Commitments and contingencies
Shareholders’ equity
Common stock		126			126			125
Additional capital		12,960			12,711			12,115
Retained earnings		45,559			43,839			40,877
Treasury stock		(7,852	)		(7,852	)		(7,852	)
Accumulated other comprehensive income (loss)		(45	)		(191	)		(134	)
Total equity		50,748			48,633			45,131
Total liabilities and equity	$	78,397		$	73,053		$	69,416

MICRON TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited)
Nine Months Ended	May 29, 2025			May 30, 2024
Cash flows from operating activities
Net income (loss)	$	5,338		$	(109	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation expense and amortization of intangible assets		6,203			5,794
Stock-based compensation		722			620
Change in operating assets and liabilities:
Receivables		(123	)		(2,562	)
Inventories		148			(125	)
Other current assets		(206	)		(435	)
Accounts payable and accrued expenses		38			846
Other current liabilities		(681	)		769
Other		356			304
Net cash provided by operating activities		11,795			5,102
Cash flows from investing activities
Expenditures for property, plant, and equipment		(10,199	)		(5,266	)
Purchases of available-for-sale securities		(1,203	)		(1,110	)
Proceeds from government incentives		1,294			267
Proceeds from maturities and sales of available-for-sale securities		1,249			1,433
Other		(30	)		(35	)
Net cash used for investing activities		(8,889	)		(4,711	)
Cash flows from financing activities
Proceeds from issuance of debt		4,430			999
Repayments of debt		(3,604	)		(1,816	)
Payments of dividends to shareholders		(392	)		(384	)
Payments on equipment purchase contracts		—			(127	)
Other		(220	)		(40	)
Net cash provided by (used for) financing activities		214			(1,368	)
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash		(3	)		(15	)
Net increase (decrease) in cash, cash equivalents, and restricted cash		3,117			(992	)
Cash, cash equivalents, and restricted cash at beginning of period		7,052			8,656
Cash, cash equivalents, and restricted cash at end of period	$	10,169		$	7,664

MICRON TECHNOLOGY, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES (In millions, except per share amounts)
	3rd Qtr.			2nd Qtr.			3rd Qtr.
	May 29, 2025			February 27, 2025			May 30, 2024
GAAP gross margin	$	3,508		$	2,963		$	1,832
Stock-based compensation		115			89			80
Other		—			1			5
Non-GAAP gross margin	$	3,623		$	3,053		$	1,917
GAAP operating expenses	$	1,339		$	1,190		$	1,113
Stock-based compensation		(148	)		(144	)		(137	)
Patent license charges		(57	)		—			—
Other		(1	)		—			—
Non-GAAP operating expenses	$	1,133		$	1,046		$	976
GAAP operating income	$	2,169		$	1,773		$	719
Stock-based compensation		263			233			217
Patent license charges		57			—			—
Other		1			1			5
Non-GAAP operating income	$	2,490		$	2,007		$	941
GAAP net income	$	1,885		$	1,583		$	332
Stock-based compensation		263			233			217
Patent license charges		57			—			—
Loss on debt prepayments		46			4			—
Other		1			—			3
Estimated tax effects of above and other tax adjustments		(71	)		(37	)		150
Non-GAAP net income	$	2,181		$	1,783		$	702
GAAP weighted-average common shares outstanding - Diluted		1,125			1,123			1,123
Adjustment for stock-based compensation		19			20			13
Non-GAAP weighted-average common shares outstanding - Diluted		1,144			1,143			1,136
GAAP diluted earnings per share	$	1.68		$	1.41		$	0.30
Effects of the above adjustments		0.23			0.15			0.32
Non-GAAP diluted earnings per share	$	1.91		$	1.56		$	0.62

RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
	3rd Qtr.			2nd Qtr.			3rd Qtr.
	May 29, 2025			February 27, 2025			May 30, 2024
GAAP net cash provided by operating activities	$	4,609		$	3,942		$	2,482
Expenditures for property, plant, and equipment		(2,938	)		(4,055	)		(2,086	)
Payments on equipment purchase contracts		—			—			(45	)
Proceeds from sales of property, plant, and equipment		12			7			41
Proceeds from government incentives		266			963			33
Investments in capital expenditures, net		(2,660	)		(3,085	)		(2,057	)
Adjusted free cash flow	$	1,949		$	857		$	425

The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income, net income, diluted shares, diluted earnings per share, and adjusted free cash flow. The non-GAAP adjustments above may or may not be infrequent or nonrecurring in nature but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful in understanding trends and in analyzing our operating results and earnings. We are providing this information to investors to assist in performing analysis of our operating results. When evaluating performance and making decisions on how to allocate our resources, management uses this non-GAAP information and believes investors should have access to similar data when making their investment decisions. We believe these non-GAAP financial measures increase transparency by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced comparison of our operating results between periods and with peer companies. The presentation of these adjusted amounts varies from amounts presented in accordance with U.S. GAAP and therefore may not be comparable to amounts reported by other companies. Our management excludes the following items as applicable in analyzing our operating results and understanding trends in our earnings:

• Stock-based compensation;
• Gains and losses from settlements;
• Gains and losses from debt prepayments;
• Restructure and asset impairments; and
• The estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures, certain tax matters related to prior fiscal periods, and significant changes in tax law. The divergence between our GAAP and non-GAAP income tax provision relates to the difference in our GAAP and non-GAAP estimated annual effective tax rates, which are computed separately.
  

Non-GAAP diluted shares are adjusted for the impact of additional shares resulting from the exclusion of stock-based compensation from non-GAAP income.

MICRON TECHNOLOGY, INC. RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
FQ4-25		GAAP Outlook		Adjustments					Non-GAAP Outlook
Revenue		$10.7 billion ± $300 million		—					$10.7 billion ± $300 million
Gross margin		41.0% ± 1.0%		1.0%			A		42.0% ± 1.0%
Operating expenses		$1.35 billion ± $20 million		$147 million			B		$1.20 billion ± $20 million
Diluted earnings per share(1)		$2.29 ± $0.15		$0.21			A, B, C		$2.50 ± $0.15

Non-GAAP Adjustments (in millions)
A	Stock-based compensation – cost of goods sold						$	119
B	Stock-based compensation – research and development							93
B	Stock-based compensation – sales, general, and administrative							54
C	Tax effects of the above items and other tax adjustments							(27	)
							$	239

(1)	GAAP earnings per share based on approximately 1.13 billion diluted shares and non-GAAP earnings per share based on approximately 1.15 billion diluted shares.

The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, additional restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.

Contacts:

Satya Kumar
Investor Relations
satyakumar@micron.com
(408) 450-6199

Mark Plungy
Media Relations
mplungy@micron.com
(408) 203-2910

FAQ

What were Micron's (MU) Q3 2025 earnings results?

Micron reported revenue of $9.30 billion, GAAP net income of $1.89 billion ($1.68 per share), and non-GAAP net income of $2.18 billion ($1.91 per share) for Q3 2025.

What is Micron's (MU) revenue guidance for Q4 2025?

Micron expects Q4 2025 revenue of $10.7 billion (±$300 million), representing a 15% sequential increase.

How much did Micron's (MU) data center revenue grow in Q3 2025?

Micron's data center revenue more than doubled year-over-year, reaching a quarterly record.

What dividend did Micron (MU) declare for Q3 2025?

Micron declared a quarterly dividend of $0.115 per share, payable on July 22, 2025, to shareholders of record as of July 7, 2025.

What was Micron's (MU) operating cash flow in Q3 2025?

Micron generated operating cash flow of $4.61 billion, up from $3.94 billion in the previous quarter and $2.48 billion year-over-year.