Micron Technology(MU) - 2025 Q4 - Annual Results

Micron Technology, Inc. Reports Results for FQ4 and FY25 Micron Technology, Inc. reports financial results for FQ4 and FY25, detailing performance and future outlook Executive Summary and Highlights Micron achieved record FQ4 and FY25 results, driven by AI data center growth, positioning it for future AI opportunities - Micron achieved record fiscal Q4 and full-year revenue in 2025, primarily driven by AI data center growth[1][2] - The company reached all-time highs across its data center business and is entering fiscal 2026 with strong momentum and its most competitive portfolio to date[2] - Micron, as the only U.S.-based memory manufacturer, is uniquely positioned to capitalize on the AI opportunity ahead[2] Summary Financial Performance This section summarizes Micron's quarterly and annual financial performance, detailing key revenue, margin, and cash flow metrics Quarterly Financial Results (FQ4 2025) Micron reported robust FQ4 2025 financial performance, with significant revenue growth, improved margins, and strong net income and EPS | Metric | FQ4-25 (GAAP) | FQ3-25 (GAAP) | FQ4-24 (GAAP) | FQ4-25 (Non-GAAP) | FQ3-25 (Non-GAAP) | FQ4-24 (Non-GAAP) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $11,315M | $9,301M | $7,750M | $11,315M | $9,301M | $7,750M | | Gross margin % | 44.7% | 37.7% | 35.3% | 45.7% | 39.0% | 36.5% | | Operating income | $3,654M | $2,169M | $1,522M | $3,955M | $2,490M | $1,745M | | Net income | $3,201M | $1,885M | $887M | $3,469M | $2,181M | $1,342M | | Diluted EPS | $2.83 | $1.68 | $0.79 | $3.03 | $1.91 | $1.18 | - Operating cash flow for FQ4 2025 was $5.73 billion, up from $4.61 billion for the prior quarter and $3.41 billion for the same period last year[4] Annual Financial Results (FY 2025) Micron achieved substantial FY25 revenue growth to $37.38 billion, with significant improvements in margins, net income, and strong cash flow | Metric | FY-25 (GAAP) | FY-24 (GAAP) | FY-25 (Non-GAAP) | FY-24 (Non-GAAP) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $37,378M | $25,111M | $37,378M | $25,111M | | Gross margin % | 39.8% | 22.4% | 40.9% | 23.7% | | Operating income | $9,770M | $1,304M | $10,846M | $1,935M | | Net income | $8,539M | $778M | $9,470M | $1,472M | | Diluted EPS | $7.59 | $0.70 | $8.29 | $1.30 | - Operating cash flow for FY 2025 was $17.53 billion, a significant increase from $8.51 billion in the prior year[4] - Adjusted free cash flow for the full year of 2025 was $3.72 billion, compared to $386 million for the prior year[5][22] - Micron ended the year with cash, marketable investments, and restricted cash of $11.94 billion[5] - A quarterly dividend of $0.115 per share was declared on September 23, 2025, payable on October 21, 2025[5] Quarterly Business Unit Financial Results (FQ4 2025) Cloud Memory Business Unit led FQ4 2025 growth with substantial revenue and strong margins, with other units also showing sequential improvements | Business Unit | FQ4-25 Revenue | FQ3-25 Revenue | FQ4-24 Revenue | FQ4-25 Gross Margin | FQ4-25 Operating Margin | | :--- | :--- | :--- | :--- | :--- | :--- | | Cloud Memory | $4,543M | $3,386M | $1,449M | 59% | 48% | | Core Data Center | $1,577M | $1,530M | $2,048M | 41% | 25% | | Mobile and Client | $3,760M | $3,255M | $3,019M | 36% | 29% | | Automotive and Embedded | $1,434M | $1,127M | $1,230M | 31% | 20% | - Cloud Memory Business Unit revenue increased 34.2% QoQ and 213.5% YoY, with a 59% gross margin and 48% operating margin in FQ4 2025[6] - Mobile and Client Business Unit revenue grew 15.5% QoQ, with gross margin improving from 24% to 36% in FQ4 2025[6] Business Outlook This section outlines Micron's financial guidance for the upcoming fiscal quarter, including revenue and margin projections FQ1 2026 Guidance Micron projects strong FQ1 2026 performance, forecasting revenue of approximately $12.50 billion and gross margins exceeding 50% | Metric | FQ1-26 (GAAP Outlook) | FQ1-26 (Non-GAAP Outlook) | | :--- | :--- | :--- | | Revenue | $12.50B ± $300M | $12.50B ± $300M | | Gross margin | 50.5% ± 1.0% | 51.5% ± 1.0% | | Operating expenses | $1.49B ± $20M | $1.34B ± $20M | | Diluted EPS | $3.56 ± $0.15 | $3.75 ± $0.15 | - Micron is forecasting $1.2 billion in sequential revenue growth for FQ1 2026, with gross margins exceeding 50%[1][7] Company Information and Disclosures Micron provides FQ4 earnings webcast details, investor information, and an overview of its leadership in memory and storage for AI Investor Relations and Company Profile Micron provides details for its FQ4 earnings webcast and general investor information, alongside a brief overview of its role as a leader in memory and storage solutions, emphasizing its contribution to AI and compute-intensive applications - Micron will host a conference call on Tuesday, September 23, 2025, at 2:30 p.m. Mountain Time to discuss its fourth quarter financial results and provide forward-looking guidance for its first quarter, with a live webcast available at investors.micron.com[8] - Micron is an industry leader in innovative memory and storage solutions, delivering a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products through its Micron® and Crucial® brands[10] - The company's innovations fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications[10] Forward-Looking Statements and Non-GAAP Definitions This section clarifies forward-looking statements, SEC filing risks, and defines GAAP and Non-GAAP financial measures and adjustments - This press release contains forward-looking statements regarding Micron's industry, strategic position, and financial and operating results, which are subject to risks and uncertainties detailed in SEC filings (Form 10-K and 10-Q)[12] - Non-GAAP measures represent GAAP excluding the impact of certain activities (e.g., stock-based compensation, restructure and asset impairments, gains/losses from debt prepayments and settlements, and estimated tax effects) which management excludes in analyzing operating results and understanding trends[12][24] - Management uses Non-GAAP information for evaluating performance and allocating resources, believing it increases transparency and provides useful supplemental information for investors[22] Consolidated Financial Statements (GAAP) This section presents Micron's GAAP consolidated statements of operations, balance sheets, and cash flows Consolidated Statements of Operations The GAAP Consolidated Statements of Operations detail Micron's revenue, cost of goods sold, gross margin, operating expenses, and net income for FQ4 and FY25 | Metric | FQ4-25 | FQ3-25 | FQ4-24 | FY-25 | FY-24 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $11,315M | $9,301M | $7,750M | $37,378M | $25,111M | | Cost of goods sold | $6,261M | $5,793M | $5,013M | $22,505M | $19,498M | | Gross margin | $5,054M | $3,508M | $2,737M | $14,873M | $5,613M | | Operating income | $3,654M | $2,169M | $1,522M | $9,770M | $1,304M | | Net income | $3,201M | $1,885M | $887M | $8,539M | $778M | | Diluted EPS | $2.83 | $1.68 | $0.79 | $7.59 | $0.70 | Consolidated Balance Sheets The GAAP Consolidated Balance Sheets present Micron's financial position as of August 28, 2025, showing increased total assets and shareholders' equity | Metric | August 28, 2025 | May 29, 2025 | August 29, 2024 | | :--- | :--- | :--- | | Total current assets | $28,841M | $27,919M | $24,372M | | Property, plant, and equipment | $46,590M | $44,773M | $39,749M | | Total assets | $82,798M | $78,397M | $69,416M | | Total liabilities | $28,633M | $27,649M | $24,285M | | Total equity | $54,165M | $50,748M | $45,131M | - Total assets increased by $13.38 billion YoY to $82.80 billion as of August 28, 2025, while total equity increased by $9.03 billion YoY to $54.17 billion[16] Consolidated Statements of Cash Flows The GAAP Consolidated Statements of Cash Flows highlight a substantial increase in net cash from operating activities for FY25 | Metric | FY-25 | FY-24 | | :--- | :--- | | Net cash provided by operating activities | $17,525M | $8,507M | | Expenditures for property, plant, and equipment | $(15,857)M | $(8,386)M | | Net cash used for investing activities | $(14,087)M | $(8,309)M | | Net cash used for financing activities | $(850)M | $(1,842)M | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $2,594M | $(1,604)M | | Cash, cash equivalents, and restricted cash at end of period | $9,646M | $7,052M | - Net cash provided by operating activities for FY25 was $17.53 billion, more than double the $8.51 billion in FY24[18] Reconciliation of GAAP to Non-GAAP Measures This section details the reconciliation of GAAP to Non-GAAP financial measures for historical results and future outlook Non-GAAP Financial Reconciliations This section provides detailed reconciliations of GAAP to Non-GAAP financial metrics for quarterly and annual periods, illustrating specific adjustment impacts Adjustments to Net Income | Adjustment Type | FQ4-25 Impact | FY-25 Impact | | :--- | :--- | :--- | | Stock-based compensation | $262M | $975M | | Restructure and asset impairments | $38M | $39M | | Loss on debt prepayments | $9M | $59M | | Patent license charges | $0M | $57M | | Estimated tax effects | $(42)M | $(200)M | | Total Adjustments to Net Income | $267M | $930M | Adjusted Free Cash Flow | Metric | FQ4-25 | FQ3-25 | FQ4-24 | FY-25 | FY-24 | | :--- | :--- | :--- | :--- | :--- | :--- | | GAAP net cash provided by operating activities | $5,730M | $4,609M | $3,405M | $17,525M | $8,507M | | Investments in capital expenditures, net | $(4,927)M | $(2,660)M | $(3,082)M | $(13,804)M | $(8,121)M | | Adjusted free cash flow | $803M | $1,949M | $323M | $3,721M | $386M | - Non-GAAP adjustments are made to exclude items such as stock-based compensation, gains and losses from settlements, gains and losses from debt prepayments, restructure and asset impairments, and estimated tax effects, to provide a clearer understanding of operating results and earnings trends[24] Non-GAAP Outlook Reconciliations This section details specific adjustments applied to GAAP guidance to arrive at the Non-GAAP outlook for FQ1 2026 Non-GAAP Adjustments for FQ1 2026 Outlook | Adjustment Type | Impact (Millions) | | :--- | :--- | | Stock-based compensation – cost of goods sold | $111 | | Stock-based compensation – research and development | $98 | | Stock-based compensation – sales, general, and administrative | $50 | | Tax effects of the above items and other tax adjustments | $(39) | | Total Non-GAAP Adjustments | $220 | - Non-GAAP diluted EPS outlook for FQ1 2026 is $3.75 ± $0.15, reflecting adjustments for stock-based compensation and tax effects from the GAAP outlook of $3.56 ± $0.15[26] - The guidance does not incorporate the impact of any potential business combinations, divestitures, additional restructuring activities, or other significant transactions[26]