Micron Technology (MU) Q1 2025 earnings summary

Executive summary

• Achieved record Q1/FQ1 2025 revenue of $8.71 billion, up 12% sequentially and 84% year-over-year, with gross margin and EPS at or above guidance midpoints, driven by strong AI and data center demand.

• Data center revenue grew over 400% year-over-year and 40% sequentially, surpassing 50% of total revenue for the first time.

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

• Technology leadership maintained in DRAM and NAND, with advanced nodes ramping and new products supporting AI-driven demand.

• Net income reached $2.04 billion (non-GAAP), reversing a loss year-ago, with EPS of $1.79 (non-GAAP) and $1.67 (GAAP).

Financial highlights

• Fiscal Q1/FQ1-25 revenue: $8.7 billion, up 12% sequentially and 84% year-over-year, a new record.

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

• Gross margin: 39.5% (non-GAAP), up 300 bps sequentially; GAAP gross margin: 38.4%.

• Operating income: $2.4 billion (27.5% margin, non-GAAP); adjusted EBITDA: $4.4 billion (50.6% margin); net income: $2.04 billion (non-GAAP).

• Free cash flow: $112 million; operating cash flow: $3.2 billion; cash and investments: $8.7 billion; total debt: $13.8 billion; liquidity: $11.2 billion.

Outlook and guidance

• Fiscal Q2/FQ2-25 revenue guidance: $7.9 billion ± $200 million; gross margin: 38.5% ± 1.0%; OPEX: ~$1.1 billion; EPS: $1.43 ± $0.10 (non-GAAP).

• Fiscal 2025 capex expected at ~$14 billion, focused on HBM and advanced DRAM nodes.

• DRAM and NAND bit shipments expected to decline sequentially in Q2, with growth resuming in the second half of fiscal year.

• DRAM industry demand growth: high teens % in 2024, mid-teens % in 2025; NAND demand growth: low double digits.

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