Micron is in the best competitive position in our history, and we are achieving share gains across high-margin product categories in our industry.
— Sanjay Mehrotra
03Detailed Report
MU
Micron Technology Inc
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 13, 2026
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Executive Summary
Micron Technology Inc reported robust results for Q2 2025, demonstrating resilience amidst fluctuating market dynamics. Total revenue reached approximately $8.05 billion, a substantial increase of 38% year-over-year but a decline of 8% sequentially. Key contributors were data center DRAM and HBM (High Bandwidth Memory), where revenue soared over 50% sequentially, marking a new milestone of more than $1 billion. Management emphasized a strong outlook for future demand driven by AI technologies and increased customer inventory replenishment, positioning Micron favorably in a competitive landscape.
Despite the sequential revenue drop, the company maintains a positive trajectory, with expectations of further record revenues in Q3 2025. Investors are encouraged by Micron's strategic investments in its next-gen memory technologies and its commitment to maximizing profits while managing inventory effectively. With strong gross and operating margins and a significant increase in cash flow generation, Micron is on track to capitalize on the booming memory market, especially as AI integration accelerates across devices.
Key Performance Indicators
Revenue
Increasing
8.05B
QoQ: -7.53% | YoY: 38.27%
Gross Profit
Increasing
2.96B
36.79% margin
QoQ: -11.50% | YoY: 174.61%
Operating Income
Increasing
1.77B
QoQ: -18.45% | YoY: 5 472.73%
Net Income
Increasing
1.58B
QoQ: -15.35% | YoY: 99.62%
EPS
Increasing
1.42
QoQ: -15.48% | YoY: 97.22%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Performance Overview
- Total Revenue: $8.05 billion, up 38% YoY, down 8% QoQ
- DRAM Revenue: $6.1 billion, up 47% YoY (76% of total revenue)
- NAND Revenue: $1.9 billion, up 18% YoY (23% of total revenue)
- Gross Margin: 37.9%, down by 160 basis points QoQ
- Operating Income: $2 billion, resulting in an operating margin of 24.9% (up 21% YoY)
- Net Income: $1.58 billion, EPS of 1.42
Management stated, "Micron is in the best competitive position in our history... Our strong product momentum has enabled us to build deeper customer relationships." Cash Flow: Generated $3.9 billion in operating cash flow, with $857 million in free cash flow. Ending cash balance stood at $9.6 billion, supporting investments and financial flexibility. Balance Sheet Strength: Total assets of $73.05 billion with total debt of approximately $14.4 billion, reflecting low leverage with a healthy liquidity position.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
8.05B
38.27%
-7.53%
Gross Profit
2.96B
174.61%
-11.50%
Operating Income
1.77B
5 472.73%
-18.45%
Net Income
1.58B
99.62%
-15.35%
EPS
1.42
97.22%
-15.48%
Key Financial Ratios
Gross Profit Margin
Fair
36.80%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
22.00%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
19.70%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
2.17%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
3.25%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
3.13
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Moderate
0.31
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Fair Value
16.17x
P/E ratio in line with market averages
Price to Book
Fair Value
2.11x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
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