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Feb 27

Micron Q2 2025 Earnings Report

Micron reported its second quarter fiscal 2025 results with revenue of $8.05 billion and strong profitability driven by robust AI demand and record data center DRAM revenue.

Key Takeaways

Micron delivered second quarter fiscal 2025 revenue of $8.05 billion and GAAP net income of $1.58 billion. Non-GAAP EPS came in at $1.56, exceeding expectations, supported by robust demand in AI markets and data center DRAM sales. The company ended the quarter with $9.60 billion in cash and marketable investments and anticipates record quarterly revenue in the next quarter.

Revenue reached $8.05 billion, up from $5.82 billion a year ago.

GAAP net income was $1.58 billion, with diluted EPS of $1.41.

Non-GAAP net income totaled $1.78 billion, with non-GAAP EPS of $1.56.

Strong data center DRAM demand contributed to record revenue growth.

Total Revenue
$8.05B
Previous year: $5.82B
+38.3%
EPS
$1.56
Previous year: $0.42
+271.4%
Operating Margin
22%
Gross Margin
36.8%
Dividend Per Share
$0.115
Gross Profit
$2.96B
Previous year: $1.08B
+174.6%
Cash and Equivalents
$7.55B
Previous year: $8.02B
-5.8%
Free Cash Flow
$857M
Previous year: -$29M
-3055.2%
Total Assets
$73.1B
Previous year: $65.7B
+11.2%

Micron

Micron

Forward Guidance

Micron expects record revenue in Q3 fiscal 2025, driven by increasing demand in data center and consumer markets for both DRAM and NAND products.

Positive Outlook

  • Expected revenue of $8.80 billion ± $200 million.
  • Non-GAAP gross margin guidance of 36.5% ± 1.0%.
  • Non-GAAP EPS guidance of $1.57 ± $0.10.
  • DRAM and NAND demand growth projected in data center and consumer markets.
  • Launch of new 1-gamma DRAM node to strengthen technology leadership.

Challenges Ahead

  • Potential macroeconomic challenges impacting consumer spending.
  • Pricing volatility in NAND and DRAM markets could pressure margins.
  • Continued competition in AI-driven memory markets.
  • High capital expenditure requirements may limit free cash flow growth.
  • Ongoing geopolitical tensions could disrupt supply chains.