Micron Technology (MU) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of $8.71 billion, up 84% year-over-year and 12% sequentially, driven by strong data center and HBM demand, with data center revenue surpassing 50% of total for the first time.

• HBM shipments and revenue more than doubled sequentially, with HBM sold out for calendar 2025 and pricing set; strong demand from major data center customers.

• Technology leadership maintained in DRAM and NAND, with advanced node ramps and new product launches supporting AI-driven demand; leading-edge DRAM supply remains tight.

• Net income reached $1.87 billion (GAAP EPS $1.67, non-GAAP $1.79), reversing a net loss a year ago.

• Operating cash flow was $3.24 billion, with adjusted free cash flow of $112 million after $3.13 billion in capital expenditures.

Financial highlights

• Fiscal Q1 revenue was $8.7 billion, up 12% sequentially and 84% year-over-year, setting a new record.

• DRAM revenue reached $6.4 billion (73% of total), up 87% year-over-year and 20% sequentially; NAND revenue was $2.2 billion (26% of total), up 82% year-over-year but down 5% sequentially.

• Gross margin improved to 39.5% (non-GAAP) and 38.4% (GAAP), up from negative 1% a year ago.

• Operating income was $2.4 billion (non-GAAP), $2.17 billion (GAAP); adjusted EBITDA $4.4 billion (50.6% margin); non-GAAP EPS $1.79.

• Ended quarter with $8.75 billion in cash, marketable investments, and restricted cash.

Outlook and guidance

• Fiscal Q2 revenue expected at $7.9 billion (±$200 million), gross margin at 38.5% (±1.0%), and EPS at $1.43 (±$0.10) non-GAAP.

• Fiscal 2025 CapEx expected to be ~$14 billion, focused on HBM and advanced DRAM nodes.

• DRAM and NAND bit shipments projected to decline sequentially in Q2 due to inventory adjustments and seasonality, with growth resuming in the second half of fiscal 2025.

• DRAM bit demand growth forecasted in high-teens % for 2024 and mid-teens % for 2025; NAND bit demand growth in low double-digits % for both years.

• Management anticipates growth in consumer markets in the second half of FY25.