Executive Summary
Micron Technology delivered a solid QQ1 2025, with meaningful year-over-year growth across revenue, gross profit and operating income, supported by a favorable pricing/mix dynamic and disciplined cost management. Revenue of $8.709 billion marked a 27.9% YoY increase, while gross margin expanded to 38.4% and operating margin reached 25.0%, driving a substantially higher operating income of $2.174 billion and net income of $1.87 billion (EPS $1.68). The quarter produced a positive free cash flow of $38 million as operating cash flow of $3.244 billion was partially offset by capex of $3.206 billion, underscoring Micron’s capital-intensive business model but also its ability to translate earnings into cash for balance sheet strength and optionality.
Key Performance Indicators
Key Insights
Revenue: $8.709B (+27.9% YoY; QoQ flat) | Gross Profit: $3.348B (+82.8% YoY) | Gross Margin: 38.4% | Operating Income: $2.174B (+214.6% YoY) | Operating Margin: 25.0% | Net Income: $1.87B (+463.3% YoY) | Net Margin: 21.5% | EPS: $1.68 (Diluted $1.67; YoY +460%) | EBITDA: $4.30B; EBITDA Margin ~49.4% | Cash from Operations: $3.244B | Capex: $3.206B | Free Cash Flow: $0.038B | Cash at End of Period: $6.697B | Total Debt: $14.373B; Net Debt: $7.68B | Current Ratio: 2.72; Quick Ratio: 1.75; Cash Rat...
Financial Highlights
Revenue: $8.709B (+27.9% YoY; QoQ flat) | Gross Profit: $3.348B (+82.8% YoY) | Gross Margin: 38.4% | Operating Income: $2.174B (+214.6% YoY) | Operating Margin: 25.0% | Net Income: $1.87B (+463.3% YoY) | Net Margin: 21.5% | EPS: $1.68 (Diluted $1.67; YoY +460%) | EBITDA: $4.30B; EBITDA Margin ~49.4% | Cash from Operations: $3.244B | Capex: $3.206B | Free Cash Flow: $0.038B | Cash at End of Period: $6.697B | Total Debt: $14.373B; Net Debt: $7.68B | Current Ratio: 2.72; Quick Ratio: 1.75; Cash Ratio: 0.74 | DSO: 76.7 days; DIO: 146.1 days; DPO: 42.3 days; CCC: 180.5 days | Total Assets: $71.461B; Total Liabilities: $24.664B; Total Equity: $46.797B | ROA: 2.62%; ROE: 4.00%; ROCE: 3.48% | Interest Coverage: 18.42x | Payout Ratio: 7.01%; Dividend Yield: 0.12%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
8.71B |
27.87% |
0.00% |
| Gross Profit |
3.35B |
82.75% |
0.00% |
| Operating Income |
2.17B |
214.62% |
0.00% |
| Net Income |
1.87B |
463.25% |
0.00% |
| EPS |
1.68 |
460.00% |
0.00% |
Key Financial Ratios
operatingProfitMargin
25%
operatingCashFlowPerShare
$2.92
freeCashFlowPerShare
$0.03
dividendPayoutRatio
7.01%
Management Commentary
Notes: The earnings transcript data set for QQ1 2025 is not provided in the supplied material. As a result, no management quotes or quotes-based themes are available. If transcript data become accessible, we will extract themes by category (strategy, operations, market conditions) and append quotes with attribution. In the absence of transcript quotes, the analysis relies on published financial metrics and typical management commentary around demand cycles, capex cadence, and product mix.
Forward Guidance
No formal forward guidance was included in the provided data. Based on Micron’s QQ1 2025 results and prevailing industry dynamics, the near-term outlook hinges on memory cycle momentum and data-center/AI demand for DRAM and NAND. Anticipated drivers include: (1) continued strength in AI/data-center workloads supporting higher memory content; (2) capex cadence aligned with fab utilization and memory pricing trends; (3) stabilization or modest price normalization in DRAM/NAND markets versus prior cycles. Management commentary (when available) typically emphasizes prudent capital allocation and the ability to generate cash even through downturns. Key factors investors should monitor: memory price trends, roll-out and utilization of manufacturing capacity, utilization of NAND/DRAM product mix, customer demand signals from hyperscalers, and any strategic actions (dividends, share repurchases, or balance-sheet optimization) that could affect future returns.