Micron Technology (MU) Q2 2025 earnings summary

Executive summary

• Achieved record data center DRAM and HBM revenue in fiscal Q2 2025, with HBM revenue surpassing $1 billion and shipments ahead of plan, driven by strong AI demand and advanced technology execution.

• Fiscal Q2 2025 revenue was $8.1 billion, up 38% year over year, with EPS above guidance and gross margin within range.

• HBM output is sold out for 2025, with strong demand and customer agreements extending into 2026.

• AI-driven demand is fueling growth across data center, PC, mobile, and automotive segments.

• Broke ground on HBM advanced packaging facility in Singapore; Idaho DRAM fab reached milestone and received CHIPS grant funding.

Financial highlights

• Fiscal Q2 DRAM revenue: $6.1 billion (76% of total), up 47% year over year; NAND revenue: $1.9 billion (23% of total), up 18% year over year.

• Gross margin: 37.9% (non-GAAP), up significantly year over year; operating income: $2 billion (24.9% margin); adjusted EBITDA: $4.1 billion (50.7% margin).

• Non-GAAP EPS: $1.56, above guidance, compared to $0.42 a year ago.

• Free cash flow: $857 million; operating cash flow: $3.9 billion; ending cash and investments: $9.6 billion.

• Dividend of $0.115 per share declared, payable April 15, 2025.

Outlook and guidance

• Fiscal Q3 2025 revenue guidance: $8.8 billion ± $200 million; gross margin: 36.5% ± 1.0%; EPS: $1.57 ± $0.10.

• Expect record revenue in Q3, with bit shipment growth in both DRAM and NAND.

• Fiscal 2025 CapEx to remain at ~$14 billion, focused on HBM and facility investments.

• DRAM bit demand growth forecast mid- to high-teens % for 2025; NAND in low double digits.

• Project tight DRAM inventories by year-end and declining inventory days through 2025.