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

1. Micron's Q2 2025 revenue reached $8.05 billion, a year-over-year increase. 2. Data center DRAM revenue tripled, driven by strong AI demand. 3. Micron expects record revenue growth in Q3 2025 and fiscal year outlook. 4. Quarterly dividend of $0.115 per share announced for shareholders. 5. New technology leadership established with the launch of 1-gamma DRAM node.

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Why Bullish?

Micron's solid revenue and profitability prospects, alongside strong AI demand, indicate positive market sentiment. Historical instances post-strong earnings reports show stock gains, such as after Q1 2023 results, which drove price increases.

How important is it?

The article highlights significant financial metrics and expected growth, which critically influence investor sentiment and stock performance for Micron.

Why Long Term?

The anticipated strong demand for Micron's products and record growth projections signify long-term positive impacts, similar to patterns observed during previous technology advancements in semiconductors.

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Micron HBM revenue crosses $1 billion milestone in fiscal Q2Strong execution and robust AI demand drives record data center DRAM revenue BOISE, Idaho, March 20, 2025 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its second quarter of fiscal 2025, which ended February 27, 2025. Fiscal Q2 2025 highlights Revenue of $8.05 billion versus $8.71 billion for the prior quarter and $5.82 billion for the same period last yearGAAP net income of $1.58 billion, or $1.41 per diluted shareNon-GAAP net income of $1.78 billion, or $1.56 per diluted shareOperating cash flow of $3.94 billion versus $3.24 billion for the prior quarter and $1.22 billion for the same period last year “Micron delivered fiscal Q2 EPS above guidance and data center revenue tripled from a year ago,” said Sanjay Mehrotra, Chairman, President and CEO of Micron Technology. “We are extending our technology leadership with the launch of our 1-gamma DRAM node. We expect record quarterly revenue in fiscal Q3, with DRAM and NAND demand growth in both data center and consumer-oriented markets, and we are on track for record revenue and significantly improved profitability in fiscal 2025.” Quarterly Financial Results(in millions, except per share amounts)GAAP(1) Non-GAAP(2)FQ2-25FQ1-25FQ2-24 FQ2-25FQ1-25FQ2-24Revenue$8,053 $8,709 $5,824  $8,053 $8,709 $5,824 Gross margin 2,963  3,348  1,079   3,053  3,441  1,163 percent of revenue 36.8% 38.4% 18.5%  37.9% 39.5% 20.0%Operating expenses 1,190  1,174  888   1,046  1,047  959 Operating income 1,773  2,174  191   2,007  2,394  204 percent of revenue 22.0% 25.0% 3.3%  24.9% 27.5% 3.5%Net income 1,583  1,870  793   1,783  2,037  476 Diluted earnings per share 1.41  1.67  0.71   1.56  1.79  0.42  For the second quarter of 2025, investments in capital expenditures, net(2) were $3.09 billion and adjusted free cash flow(2) was $857 million. Micron ended the quarter with cash, marketable investments, and restricted cash of $9.60 billion. On March 20, 2025, Micron’s Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on April 15, 2025, to shareholders of record as of the close of business on March 31, 2025. Business Outlook The following table presents Micron’s guidance for the third quarter of 2025: FQ3-25GAAP(1) OutlookNon-GAAP(2) OutlookRevenue$8.80 billion ± $200 million$8.80 billion ± $200 millionGross margin35.5% ± 1.0%36.5% ± 1.0%Operating expenses$1.27 billion ± $15 million$1.13 billion ± $15 millionDiluted earnings per share$1.37 ± $0.10$1.57 ± $0.10 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 Thursday, March 20, 2025 at 2:30 p.m. Mountain Time to discuss its second quarter financial results and provide forward-looking guidance for its third 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 industry and our financial and operating results, including our guidance for the third quarter of 2025. 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)  2nd Qtr.1st Qtr.2nd Qtr.Six months ended February 27,2025November 28,2024February 29,2024February 27,2025February 29,2024Revenue$8,053 $8,709 $5,824 $16,762 $10,550 Cost of goods sold 5,090  5,361  4,745  10,451  9,506 Gross margin 2,963  3,348  1,079  6,311  1,044       Research and development 898  888  832  1,786  1,677 Selling, general, and administrative 285  288  280  573  543 Other operating (income) expense, net 7  (2) (224) 5  (239)Operating income (loss) 1,773  2,174  191  3,947  (937)      Interest income 108  107  130  215  262 Interest expense (112) (118) (144) (230) (276)Other non-operating income (expense), net (11) (11) (7) (22) (34)  1,758  2,152  170  3,910  (985)      Income tax (provision) benefit (177) (283) 622  (460) 549 Equity in net income (loss) of equity method investees 2  1  1  3  (5)Net income (loss)$1,583 $1,870 $793 $3,453 $(441)      Earnings (loss) per share     Basic$1.42 $1.68 $0.72 $3.10 $(0.40)Diluted 1.41  1.67  0.71  3.08  (0.40)      Number of shares used in per share calculations     Basic 1,115  1,111  1,104  1,113  1,102 Diluted 1,123  1,122  1,114  1,123  1,102  MICRON TECHNOLOGY, INC.CONSOLIDATED BALANCE SHEETS(In millions)(Unaudited) As ofFebruary 27,2025November 28,2024August 29,2024Assets   Cash and equivalents$7,552 $6,693 $7,041 Short-term investments 663  895  1,065 Receivables 6,504  7,423  6,615 Inventories 9,007  8,705  8,875 Other current assets 963  777  776 Total current assets 24,689  24,493  24,372 Long-term marketable investments 1,375  1,156  1,046 Property, plant, and equipment 42,528  41,476  39,749 Operating lease right-of-use assets 637  622  645 Intangible assets 423  419  416 Deferred tax assets 552  474  520 Goodwill 1,150  1,150  1,150 Other noncurrent assets 1,699  1,671  1,518 Total assets$73,053 $71,461 $69,416     Liabilities and equity   Accounts payable and accrued expenses$6,176 $7,126 $7,299 Current debt 504  533  431 Other current liabilities 1,197  1,356  1,518 Total current liabilities 7,877  9,015  9,248 Long-term debt 13,851  13,252  12,966 Noncurrent operating lease liabilities 599  588  610 Noncurrent unearned government incentives 836  570  550 Other noncurrent liabilities 1,257  1,239  911 Total liabilities 24,420  24,664  24,285     Commitments and contingencies       Shareholders’ equity   Common stock 126  126  125 Additional capital 12,711  12,317  12,115 Retained earnings 43,839  42,427  40,877 Treasury stock (7,852) (7,852) (7,852)Accumulated other comprehensive income (loss) (191) (221) (134)Total equity 48,633  46,797  45,131 Total liabilities and equity$73,053 $71,461 $69,416  MICRON TECHNOLOGY, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited) Six months endedFebruary 27,2025February 29,2024Cash flows from operating activities  Net income (loss)$3,453 $(441)Adjustments to reconcile net income (loss) to net cash provided by operating activities:  Depreciation expense and amortization of intangible assets 4,109  3,839 Stock-based compensation 469  401 Change in operating assets and liabilities:  Receivables 338  (1,759)Inventories (132) (57)Other current assets (204) (799)Accounts payable and accrued expenses (714) 573 Other current liabilities (321) 706 Other 188  157 Net cash provided by operating activities 7,186  2,620    Cash flows from investing activities  Expenditures for property, plant, and equipment (7,261) (3,180)Purchases of available-for-sale securities (816) (465)Proceeds from government incentives 1,028  234 Proceeds from maturities and sales of available-for-sale securities 874  726 Other (125) (24)Net cash provided by (used for) investing activities (6,300) (2,709)   Cash flows from financing activities  Repayments of debt (2,626) (1,101)Payments of dividends to shareholders (261) (256)Payments on equipment purchase contracts —  (82)Proceeds from issuance of debt 2,682  999 Other (121) (18)Net cash provided by (used for) financing activities (326) (458)   Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash (49) (8)   Net increase (decrease) in cash, cash equivalents, and restricted cash 511  (555)Cash, cash equivalents, and restricted cash at beginning of period 7,052  8,656 Cash, cash equivalents, and restricted cash at end of period$7,563 $8,101  MICRON TECHNOLOGY, INC.RECONCILIATION OF GAAP TO NON-GAAP MEASURES(In millions, except per share amounts) 2nd Qtr.1st Qtr.2nd Qtr. February 27,2025November 28,2024February 29,2024GAAP gross margin$2,963 $3,348 $1,079 Stock-based compensation 89  90  80 Other 1  3  4 Non-GAAP gross margin$3,053 $3,441 $1,163     GAAP operating expenses$1,190 $1,174 $888 Stock-based compensation (144) (127) (129)Patent cross-license agreement gain —  —  200 Non-GAAP operating expenses$1,046 $1,047 $959     GAAP operating income$1,773 $2,174 $191 Stock-based compensation 233  217  209 Patent cross-license agreement gain —  —  (200)Other 1  3  4 Non-GAAP operating income$2,007 $2,394 $204     GAAP net income$1,583 $1,870 $793 Stock-based compensation 233  217  209 Patent cross-license agreement gain —  —  (200)Other 4  —  2 Estimated tax effects of above and other tax adjustments (37) (50) (328)Non-GAAP net income$1,783 $2,037 $476     GAAP weighted-average common shares outstanding - Diluted 1,123  1,122  1,114 Adjustment for stock-based compensation 20  16  20 Non-GAAP weighted-average common shares outstanding - Diluted 1,143  1,138  1,134     GAAP diluted earnings per share$1.41 $1.67 $0.71 Effects of the above adjustments 0.15  0.12  (0.29)Non-GAAP diluted earnings per share$1.56 $1.79 $0.42  RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued  2nd Qtr.1st Qtr.2nd Qtr. February 27,2025November 28,2024February 29,2024GAAP net cash provided by operating activities$3,942 $3,244 $1,219     Expenditures for property, plant, and equipment (4,055) (3,206) (1,384)Payments on equipment purchase contracts —  —  (26)Proceeds from sales of property, plant, and equipment 7  9  13 Proceeds from government incentives 963  65  149 Investments in capital expenditures, net (3,085) (3,132) (1,248)Adjusted free cash flow$857 $112 $(29) 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;Restructure and asset impairments; andThe 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 FQ3-25GAAP Outlook  Adjustments Non-GAAP Outlook Revenue$8.80 billion ± $200 million   —   $8.80 billion ± $200 million Gross margin35.5% ± 1.0%   1.0%A 36.5% ± 1.0% Operating expenses$1.27 billion ± $15 million  $144 million B $1.13 billion ± $15 million Diluted earnings per share(1)$1.37 ± $0.10   $0.20 A, B, C $1.57 ± $0.10  Non-GAAP Adjustments(in millions)AStock-based compensation – cost of goods sold $106 BStock-based compensation – research and development  89 BStock-based compensation – sales, general, and administrative  55 CTax effects of the above items and other tax adjustments  (29)   $221  (1)GAAP earnings per share based on approximately 1.13 billion diluted shares and non-GAAP earnings per share based on approximately 1.14 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.

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