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Micron: Micron Technology's Record Revenue Driven by Strong Data Center Demand

Micron Technology concluded fiscal 2025 with a record revenue of $37.4 billion, representing a 49% increase year-over-year, driven by strong data center demand and a 17 percentage point expansion in gross margins to 41%. The company's fiscal Q4 revenue reached $11.3 billion, a 22% sequential increase and a quarterly record. Earnings per share (EPS) came in at $3.03, beating estimates of $2.86. The revenue growth was fueled by customer demand across all end markets, with record data center revenue and strong sequential growth in consumer markets.

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USD 257.99

2.21%

A-Score: 4.8/10

Publication date: September 23, 2025

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Author: Analystock.ai

📋 Highlights
  • Record FY25 Revenue: Micron achieved $37.4 billion, up 49% YoY, with 17pp gross margin expansion to 41%.
  • Q4 Revenue Surge: $11.3 billion revenue (22% sequential growth), driven by record data center revenue and strong consumer demand.
  • DRAM Dominance: DRAM revenue hit $9 billion (69% YoY growth), while NAND saw $2.3 billion (5% sequential rise despite 5% YoY decline).
  • Data Center Margins: CMBU gross margins expanded to 59% (up from 41% in CDBU), driven by HBM demand and cost reductions.
  • Q1 Guidance: $12.5 billion revenue (±$300M), $3.75 non-GAAP EPS (±15¢), and $4.5 billion capital spending for Q1 FY2026.

Segment-wise Performance

DRAM revenue hit a record $9 billion, a 69% year-over-year increase, driven by strong demand across all end markets and tight industry supply. NAND revenue reached $2.3 billion, a 5% year-over-year decline, but a 5% sequential increase due to favorable mix. The company's data center business, comprising its cloud memory and core data center business units, reached record revenue. The cloud memory business unit achieved $4.5 billion in revenue, with gross margins expanding to 59%, driven by cost reductions and strong demand for HBM products.

Guidance and Outlook

Micron expects calendar 2025 industry DRAM bit demand growth to be in the high teens percentage range, and calendar 2025 industry NAND bit demand growth to be in the low to mid-teens percentage range. The company anticipates further DRAM supply tightness in 2026 and continued strengthening in NAND market conditions. For the first quarter, Micron expects revenue to be a record $12.5 billion, plus or minus $300 million, and non-GAAP EPS to be a record $3.75 per share, plus or minus 15¢.

Valuation and Growth Prospects

With a P/E Ratio of 20.63 and an expected revenue growth of 37.4% next year, Micron's valuation appears reasonable. The company's Return on Equity (ROE) stands at 17.05%, and its Return on Invested Capital (ROIC) is 15.83%, indicating strong profitability. The Net Debt / EBITDA ratio is 0.27, suggesting a healthy debt position. Analysts expect significantly higher annual free cash flow year over year, which is a positive indicator for the company's growth prospects.

Innovation and Product Development

Micron is investing heavily in its one gamma DRAM and HPM-related technologies, leading to higher capital spending in fiscal 2026. The company's HBM4 product exceeds customer bandwidth requirements, and its innovative design has positioned Micron for a successful HBM4 ramp. With HBM4e expected to follow in 2027, Micron is well-placed to capitalize on the growing demand for high-bandwidth memory products.

Micron's A-Score