Micron Technology Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −5.06%.
Did MU Beat Earnings? Q2 2025 Results
Micron Technology posted a strong fiscal second quarter, with non-GAAP earnings of $1.56 per share beating the $1.42 consensus estimate by 9.49% and revenue of $8.05 billion edging past the $7.90 billion forecast by nearly 2%, as surging AI-driven demand for High Bandwidth Memory provided the clearest explanation for the outperformance. HBM revenue crossed $1.00 billion in the quarter while data center DRAM reached a record level, helping lift year-over-year revenue by roughly 38% from $5.82 billion despite a sequential dip from Q1's $8.71 billion as consumer memory markets softened. GAAP gross margin of 36.8% more than doubled from 18.5% a year ago, reflecting improved pricing power rooted in AI infrastructure spending, though a conservative margin outlook for the coming quarter weighed on the stock. Looking ahead, Micron guided fiscal Q3 revenue of $8.80 billion, plus or minus $200 million, with non-GAAP EPS of $1.57, plus or minus $0.10, as the company cited HBM chips already sold out through calendar 2025 and anticipated record annual revenue for the full fiscal year.
- Data center revenue tripled year-over-year
- Record data center DRAM revenue driven by robust AI demand
- HBM revenue exceeded $1 billion in the quarter
- Strong operating cash flow of $3.94 billion, up significantly year-over-year
“Micron delivered fiscal Q2 EPS above guidance and data center revenue tripled from a year ago. We are extending our technology leadership with the launch of our 1-gamma DRAM node. We expect record quarterly revenue in fiscal Q3, with DRAM and NAND demand growth in both data center and consumer-oriented markets, and we are on track for record revenue and significantly improved profitability in fiscal 2025.”
Micron Technology CEO, on the earnings call
Forward Guidance & Outlook
For fiscal Q3 2025, Micron guided revenue of $8.80 billion ± $200 million, which would represent a record quarter. GAAP gross margin is expected at 35.5% ± 1.0% and non-GAAP gross margin at 36.5% ± 1.0%. GAAP diluted EPS is guided at $1.37 ± $0.10, while non-GAAP diluted EPS is expected at $1.57 ± $0.10. The company expects DRAM and NAND demand growth in both data center and consumer-oriented markets and is on track for record revenue and significantly improved profitability in fiscal 2025.
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Figures from SEC filings and company reports. Not investment advice.