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

Rhea-AI Summary

Micron Technology (MU) reported strong fiscal Q1 2025 results with record revenue of $8.71 billion, up from $7.75 billion in the previous quarter and $4.73 billion year-over-year. Data center revenue grew over 40% sequentially and over 400% year-over-year, surpassing 50% of total revenue for the first time.

The company posted GAAP net income of $1.87 billion ($1.67 per share) and non-GAAP net income of $2.04 billion ($1.79 per share). Operating cash flow was $3.24 billion. Gross margin improved to 38.4% GAAP and 39.5% non-GAAP. For Q2 2025, Micron expects revenue of $7.9 billion (±$200 million) with diluted EPS of $1.26 GAAP and $1.43 non-GAAP.

Positive

• Record quarterly revenue of $8.71 billion, up 84% YoY
• Data center revenue grew over 400% YoY
• GAAP net income of $1.87 billion vs loss in previous year
• Gross margin improved to 38.4% from -0.7% YoY
• Strong operating cash flow of $3.24 billion

Negative

• Sequential decline in operating cash flow from $3.41B to $3.24B
• Weaker consumer-oriented markets in near term
• Expected revenue decline in Q2 2025 to $7.9B from Q1's $8.71B

Insights

Financial Analyst

Micron's Q1 FY25 results showcase exceptional performance with $8.71 billion revenue, marking a 84% YoY growth and 12% sequential increase. The data center segment's 400% YoY growth reflects robust AI-driven demand. The 38.4% GAAP gross margin and $1.87 billion net income demonstrate strong operational efficiency. The company's guidance for Q2, projecting $7.9 billion revenue, suggests a slight sequential decline but maintains healthy margins. The $8.75 billion cash position and positive adjusted free cash flow of $112 million indicate solid financial health despite significant capex investments of $3.13 billion.

Technology Industry Analyst

The strategic pivot towards AI-centric markets is paying dividends, with data center revenue now representing over 50% of total revenue - a critical milestone in Micron's transformation. The 400% YoY growth in data center revenue signals Micron's strengthening position in high-performance memory solutions for AI applications. While consumer markets show weakness, the company's focus on high-margin segments and AI infrastructure positions it favorably for sustained growth. The substantial capex investment of $3.13 billion reflects commitment to capacity expansion and technological advancement, important for maintaining competitive edge in AI-driven memory markets.

Market Research Analyst

The market dynamics revealed in this report indicate a significant shift in memory demand patterns. The exceptional data center growth overshadows near-term weakness in consumer markets, suggesting a structural change in the memory industry landscape driven by AI adoption. The company's share gains in premium market segments and strategic positioning for AI-driven growth present a compelling long-term value proposition. The maintained dividend policy and robust guidance demonstrate management's confidence in sustainable growth trajectory. The market's response should factor in both the strong current performance and the strategic transformation towards higher-margin, AI-centric business models.

Micron delivers record fiscal Q1 revenue, driven by strong AI demand
Data center revenue grew over 40% sequentially and over 400% year over year

BOISE, Idaho, Dec. 18, 2024 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its first quarter of fiscal 2025, which ended November 28, 2024.

Fiscal Q1 2025 highlights

• Revenue of $8.71 billion versus $7.75 billion for the prior quarter and $4.73 billion for the same period last year
• GAAP net income of $1.87 billion, or $1.67 per diluted share
• Non-GAAP net income of $2.04 billion, or $1.79 per diluted share
• Operating cash flow of $3.24 billion versus $3.41 billion for the prior quarter and $1.40 billion for the same period last year

“Micron delivered a record quarter, and our data center revenue surpassed 50% of our total revenue for the first time,” said Sanjay Mehrotra, President and CEO of Micron Technology. “While consumer-oriented markets are weaker in the near term, we anticipate a return to growth in the second half of our fiscal year. We continue to gain share in the highest margin and strategically important parts of the market and are exceptionally well positioned to leverage AI-driven growth to create substantial value for all stakeholders.”

Quarterly Financial Results
(in millions, except per share amounts)	GAAP(1)										Non-GAAP(2)
	FQ1-25			FQ4-24			FQ1-24				FQ1-25			FQ4-24			FQ1-24
Revenue	$	8,709		$	7,750		$	4,726			$	8,709		$	7,750		$	4,726
Gross margin		3,348			2,737			(35	)			3,441			2,826			37
percent of revenue		38.4	%		35.3	%		(0.7	%)			39.5	%		36.5	%		0.8	%
Operating expenses		1,174			1,215			1,093				1,047			1,081			992
Operating income (loss)		2,174			1,522			(1,128	)			2,394			1,745			(955	)
percent of revenue		25.0	%		19.6	%		(23.9	%)			27.5	%		22.5	%		(20.2	%)
Net income (loss)		1,870			887			(1,234	)			2,037			1,342			(1,048	)
Diluted earnings (loss) per share		1.67			0.79			(1.12	)			1.79			1.18			(0.95	)

Investments in capital expenditures, net⁽²⁾ were $3.13 billion for the first quarter of 2025, which resulted in adjusted free cash flows⁽²⁾ of $112 million for the first quarter of 2025. Micron ended the quarter with cash, marketable investments, and restricted cash of $8.75 billion. On December 18, 2024, Micron’s Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on January 15, 2025, to shareholders of record as of the close of business on December 30, 2024.

Business Outlook

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

FQ2-25	GAAP(1) Outlook	Non-GAAP(2) Outlook
Revenue	$7.90 billion ± $200 million	$7.90 billion ± $200 million
Gross margin	37.5% ± 1.0%	38.5% ± 1.0%
Operating expenses	$1.24 billion ± $15 million	$1.10 billion ± $15 million
Diluted earnings per share	$1.26 ± $0.10	$1.43 ± $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 Wednesday, December 18, 2024 at 2:30 p.m. Mountain Time to discuss its first quarter financial results and provide forward-looking guidance for its second 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.

© 2024 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 industry, our strategic focus, demand for our products, and our financial and operating results, including our guidance for the second 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)
	1st Qtr.			4th Qtr.			1st Qtr.
	November 28, 2024			August 29, 2024			November 30, 2023
Revenue	$	8,709		$	7,750		$	4,726
Cost of goods sold		5,361			5,013			4,761
Gross margin		3,348			2,737			(35	)
Research and development		888			903			845
Selling, general, and administrative		288			295			263
Other operating (income) expense, net		(2	)		17			(15	)
Operating income (loss)		2,174			1,522			(1,128	)
Interest income		107			131			132
Interest expense		(118	)		(136	)		(132	)
Other non-operating income (expense), net		(11	)		(7	)		(27	)
		2,152			1,510			(1,155	)
Income tax (provision) benefit		(283	)		(623	)		(73	)
Equity in net income (loss) of equity method investees		1			—			(6	)
Net income (loss)	$	1,870		$	887		$	(1,234	)
Earnings (loss) per share
Basic	$	1.68		$	0.80		$	(1.12	)
Diluted		1.67			0.79			(1.12	)
Number of shares used in per share calculations
Basic		1,111			1,108			1,100
Diluted		1,122			1,125			1,100

MICRON TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited)
As of	November 28, 2024			August 29, 2024
Assets
Cash and equivalents	$	6,693		$	7,041
Short-term investments		895			1,065
Receivables		7,423			6,615
Inventories		8,705			8,875
Other current assets		777			776
Total current assets		24,493			24,372
Long-term marketable investments		1,156			1,046
Property, plant, and equipment		41,476			39,749
Operating lease right-of-use assets		622			645
Intangible assets		419			416
Deferred tax assets		474			520
Goodwill		1,150			1,150
Other noncurrent assets		1,671			1,518
Total assets	$	71,461		$	69,416
Liabilities and equity
Accounts payable and accrued expenses	$	7,126		$	7,299
Current debt		533			431
Other current liabilities		1,356			1,518
Total current liabilities		9,015			9,248
Long-term debt		13,252			12,966
Noncurrent operating lease liabilities		588			610
Noncurrent unearned government incentives		570			550
Other noncurrent liabilities		1,239			911
Total liabilities		24,664			24,285
Commitments and contingencies
Shareholders’ equity
Common stock		126			125
Additional capital		12,317			12,115
Retained earnings		42,427			40,877
Treasury stock		(7,852	)		(7,852	)
Accumulated other comprehensive income (loss)		(221	)		(134	)
Total equity		46,797			45,131
Total liabilities and equity	$	71,461		$	69,416

MICRON TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited)
Three months ended	November 28, 2024			November 30, 2023
Cash flows from operating activities
Net income (loss)	$	1,870		$	(1,234	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation expense and amortization of intangible assets		2,030			1,915
Stock-based compensation		220			188
Change in operating assets and liabilities:
Receivables		(817	)		(501	)
Inventories		170			111
Accounts payable and accrued expenses		(241	)		271
Other current liabilities		(161	)		579
Other		173			72
Net cash provided by operating activities		3,244			1,401
Cash flows from investing activities
Expenditures for property, plant, and equipment		(3,206	)		(1,796	)
Purchases of available-for-sale securities		(377	)		(199	)
Proceeds from maturities and sales of available-for-sale securities		428			374
Proceeds from government incentives		65			85
Other		(58	)		(22	)
Net cash provided by (used for) investing activities		(3,148	)		(1,558	)
Cash flows from financing activities
Payments of dividends to shareholders		(131	)		(129	)
Repayments of debt		(84	)		(53	)
Payments on equipment purchase contracts		—			(56	)
Other		(207	)		(114	)
Net cash provided by (used for) financing activities		(422	)		(352	)
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash		(29	)		(1	)
Net increase (decrease) in cash, cash equivalents, and restricted cash		(355	)		(510	)
Cash, cash equivalents, and restricted cash at beginning of period		7,052			8,656
Cash, cash equivalents, and restricted cash at end of period	$	6,697		$	8,146

MICRON TECHNOLOGY, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES (In millions, except per share amounts)
	1st Qtr.			4th Qtr.			1st Qtr.
	November 28, 2024			August 29, 2024			November 30, 2023
GAAP gross margin	$	3,348		$	2,737		$	(35	)
Stock-based compensation		90			85			67
Other		3			4			5
Non-GAAP gross margin	$	3,441		$	2,826		$	37
GAAP operating expenses	$	1,174		$	1,215		$	1,093
Stock-based compensation		(127	)		(128	)		(115	)
Other		—			(6	)		14
Non-GAAP operating expenses	$	1,047		$	1,081		$	992
GAAP operating income (loss)	$	2,174		$	1,522		$	(1,128	)
Stock-based compensation		217			213			182
Other		3			10			(9	)
Non-GAAP operating income (loss)	$	2,394		$	1,745		$	(955	)
GAAP net income (loss)	$	1,870		$	887		$	(1,234	)
Stock-based compensation		217			213			182
Other		—			6			(10	)
Estimated tax effects of above and other tax adjustments		(50	)		236			14
Non-GAAP net income (loss)	$	2,037		$	1,342		$	(1,048	)
GAAP weighted-average common shares outstanding - Diluted		1,122			1,125			1,100
Adjustment for stock-based compensation		16			12			—
Non-GAAP weighted-average common shares outstanding - Diluted		1,138			1,137			1,100
GAAP diluted earnings (loss) per share	$	1.67		$	0.79		$	(1.12	)
Effects of the above adjustments		0.12			0.39			0.17
Non-GAAP diluted earnings (loss) per share	$	1.79		$	1.18		$	(0.95	)

RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
	1st Qtr.			4th Qtr.			1st Qtr.
	November 28, 2024			August 29, 2024			November 30, 2023
GAAP net cash provided by operating activities	$	3,244		$	3,405		$	1,401
Expenditures for property, plant, and equipment		(3,206	)		(3,120	)		(1,796	)
Payments on equipment purchase contracts		—			(22	)		(56	)
Proceeds from sales of property, plant, and equipment		9			12			33
Proceeds from government incentives		65			48			85
Investments in capital expenditures, net		(3,132	)		(3,082	)		(1,734	)
Adjusted free cash flow	$	112		$	323		$	(333	)

The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income (loss), net income (loss), diluted shares, diluted earnings (loss) 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;
• Goodwill impairment; 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 (loss).

MICRON TECHNOLOGY, INC. RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
FQ2-25	GAAP Outlook		Adjustments					Non-GAAP Outlook
Revenue	$7.90 billion ± $200 million		—					$7.90 billion ± $200 million
Gross margin	37.5% ± 1.0%		1.0%			A		38.5% ± 1.0%
Operating expenses	$1.24 billion ± $15 million		$140 million			B		$1.10 billion ± $15 million
Diluted earnings per share(1)	$1.26 ± $0.10		$0.17			A, B, C		$1.43 ± $0.10

Non-GAAP Adjustments (in millions)
A	Stock-based compensation – cost of goods sold						$	78
B	Stock-based compensation – research and development							85
B	Stock-based compensation – sales, general, and administrative							55
C	Tax effects of the above items and other tax adjustments							(24	)
							$	194

 

(1)	GAAP earnings per share based on approximately 1.12 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.

FAQ

What was Micron's (MU) revenue growth in Q1 2025?

Micron reported record revenue of $8.71 billion in Q1 2025, representing an 84% increase from $4.73 billion in the same period last year.

How much did Micron's (MU) data center revenue grow in Q1 2025?

Micron's data center revenue grew over 40% sequentially and over 400% year-over-year, exceeding 50% of total revenue for the first time.

What is Micron's (MU) earnings guidance for Q2 2025?

Micron expects Q2 2025 revenue of $7.9 billion (±$200 million) with diluted EPS of $1.26 GAAP and $1.43 non-GAAP.

What dividend did Micron (MU) declare for Q1 2025?

Micron declared a quarterly dividend of $0.115 per share, payable on January 15, 2025, to shareholders of record as of December 30, 2024.

How much cash and investments did Micron (MU) have at the end of Q1 2025?

Micron ended Q1 2025 with $8.75 billion in cash, marketable investments, and restricted cash.