Micron Technology (MU) Q3 2025 earnings summary

Executive summary

• Achieved record Q3/FQ3-25 revenue of $9.3B, up 15% sequentially and 37% year-over-year, with gross margin and EPS exceeding guidance highs.

• Data center revenue more than doubled year-over-year, with nearly 50% sequential growth in HBM revenue and strong consumer market growth.

• Strategic reorganization completed to focus on AI-driven opportunities and market segments.

• Substantial free cash flow generated, supporting ongoing strategic investments for long-term growth.

• Achieved #2 brand share in data center SSDs and record market share in both data center and client SSDs.

Financial highlights

• Q3/FQ3-25 revenue: $9.3B; gross margin: 39.0% (non-GAAP), 37.7%-38% (GAAP); operating income: $2.5B (non-GAAP), $2.17B (GAAP); net income: $2.2B (non-GAAP), $1.89B (GAAP); diluted EPS: $1.91 (non-GAAP), $1.68 (GAAP).

• DRAM revenue: $7.1B (76% of total), up 51% year-over-year and 15% sequentially; bit shipments up 20%+.

• NAND revenue: $2.2B (23% of total), up 4% year-over-year and 16% sequentially; bit shipments up mid-20%.

• Free cash flow: $1.9B+ (highest in over six years); operating cash flow: $4.61B.

• Cash and investments: $12.2B; total liquidity: $15.7B; debt: $15.5B.

Outlook and guidance

• Q4/FQ4-25 revenue guidance: $10.7B ± $300M; gross margin: 42% ± 1.0%; EPS: $2.50 ± $0.15.

• Fiscal 2025 capex plan unchanged at ~$14B, focused on HBM, facilities, and R&D.

• Fiscal 2026 tax rate expected in high-teens percentage due to new international tax legislation.

• DRAM and NAND bit supply growth to remain below industry demand for non-HBM products.

• Expect to exit FY25 with tight DRAM and reduced NAND inventories.