"We are in the very early stages of a multi-year growth phase catalyzed and driven by generative AI... Micron is well positioned to leverage this growth."
— Sanjay Mehrotra
03Detailed Report
MU
Micron Technology Inc
Period
Q1 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 20, 2026
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Executive Summary
Micron Technology Inc (MU) reported its Q1 2024 financial results with revenues of approximately $4.7 billion, representing an 18% sequential growth and 16% year-over-year. This performance was bolstered by improved pricing dynamics and a strong demand environment driven by applications in generative AI. CEO Sanjay Mehrotra emphasized that Micron is at the beginning of a multi-year growth phase, catalyzed by AI, which is expected to transform various market sectors. Despite a disappointing gross profit margin near 1% and an operating loss of $955 million, the outlook is optimistic, with expectations for pricing to continue strengthening throughout the fiscal year 2024, ultimately leading to improved margins and financial performance. Management articulated confidence in navigating supply-demand challenges, particularly with AI as a dominant demand driver.
Key Performance Indicators
Revenue
Increasing
4.73B
QoQ: 17.86% | YoY: 15.69%
Gross Profit
Decreasing
-35.00M
-0.70% margin
QoQ: 91.95% | YoY: -103.92%
Operating Income
Decreasing
-1.13B
QoQ: 23.37% | YoY: -907.14%
Net Income
Decreasing
-1.23B
QoQ: 13.71% | YoY: -570.65%
EPS
Decreasing
-1.12
QoQ: 14.50% | YoY: -558.82%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Performance: Q1 2024 revenues were approximately $4.7 billion (up 18% QoQ and up 16% YoY). DRAM revenue accounted for 73% of total revenue, at $3.4 billion, up 24% sequentially. Gross Margin: Achieved a gross margin of near 1%, improved from near-breakeven in the previous quarter, primarily due to pricing improvements and a better mix of DRAM products. Operating Income: Recorded an operating loss of $955 million with an operating margin of -20%, indicating continued challenges in profitability. Net Income: The net loss for the quarter was $1.234 billion, with a diluted EPS of -$1.12. Management projects positive cash flows significantly later in FY24, highlighting CapEx restraints in response to pricing improvements. Liquidity and Debt: Cash and equivalents were approximately $9.8 billion, with total debt at $13.5 billion, affirming a stable financial position despite operational losses.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
4.73B
15.69%
17.86%
Gross Profit
-35.00M
-103.92%
91.95%
Operating Income
-1.13B
-907.14%
23.37%
Net Income
-1.23B
-570.65%
13.71%
EPS
-1.12
-558.82%
14.50%
Key Financial Ratios
Gross Profit Margin
Weak
-0.01%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
-0.24%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.26%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.02%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.03%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
3.53
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Moderate
0.33
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Negative
-16.96x
Negative earnings make P/E ratio not meaningful
Price to Book
Fair Value
1.95x
Price-to-book ratio reasonable for profitable companies
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