Executive Summary
Micron Technology’s QQ2 2025 results reflect a resilient memory franchise delivering meaningful year-over-year improvements in revenue and profitability, even as the quarter faced sequential pressure typical of a memory-cycle trough. Revenue of $8.053 billion marked a 3.9% YoY increase, with gross profit of $2.963 billion and a gross margin of approximately 36.8%, underscoring stable product mix and cost discipline. Net income rose to $1.583 billion and diluted EPS to $1.41-$1.42, supported by strong operating leverage in a high-visibility data-center and AI-related memory demand backdrop.
On the cash-flow front, Micron generated solid operating cash flow of about $3.942 billion and reported free cash flow that the dataset lists as $7.148 billion (note: the reported CFO minus capex reconciliation in the period suggests an inconsistency in the free-cash-flow figure within the provided data; the CFO and capex figures point to a more conservative free cash flow of roughly $0.736 billion if calculated strictly). The company ended the period with roughly $7.56 billion in cash and cash equivalents and a net debt position of about $7.40 billion, signaling strong liquidity to fund capex and potential shareholder returns. Total assets stood at ~$73.05 billion with a robust stockholders’ equity base (~$48.63 billion). The balance sheet shows a levered, yet manageable, capital structure (total debt ~$14.95 billion; debt-to-capitalization around 23.5%).
Overall, the QQ2 print reinforces Micron’s capability to translate a favorable mix and stable pricing into meaningful earnings and cash-generation power, while also reminding investors of the cyclical, price-pressured nature of the DRAM/NAND markets and the need to monitor AI-driven demand, channel dynamics, and memory-price trajectories.
Key Performance Indicators
QoQ: -18.45% | YoY:16.49%
QoQ: -15.35% | YoY:78.47%
QoQ: -15.48% | YoY:77.50%
Key Insights
Revenue: $8.053 billion, up 3.9% YoY; QoQ: -7.5%
Gross Profit: $2.963 billion; gross margin 36.79%; YoY +8.26%; QoQ -11.50%
Operating Income: $1.773 billion; operating margin 22.01%; YoY +16.49%; QoQ -18.45%
Net Income: $1.583 billion; net margin 19.66%; YoY +78.47%; QoQ -15.35%
EPS (diluted): $1.41-$1.42; YoY +77.5%; QoQ -15.5%
CFO (Net cash from operating activities): $3.942 billion
Capital Expenditures (Capex): $3.206 billion
Free Cash Flow (as reported in data): $7.148 billion (note potentia...
Financial Highlights
Revenue: $8.053 billion, up 3.9% YoY; QoQ: -7.5%
Gross Profit: $2.963 billion; gross margin 36.79%; YoY +8.26%; QoQ -11.50%
Operating Income: $1.773 billion; operating margin 22.01%; YoY +16.49%; QoQ -18.45%
Net Income: $1.583 billion; net margin 19.66%; YoY +78.47%; QoQ -15.35%
EPS (diluted): $1.41-$1.42; YoY +77.5%; QoQ -15.5%
CFO (Net cash from operating activities): $3.942 billion
Capital Expenditures (Capex): $3.206 billion
Free Cash Flow (as reported in data): $7.148 billion (note potential reconciliation discrepancy in data; CFO minus capex suggests ~ $0.736 billion)
Cash at end of period: $7.563 billion
Net cash provided by/used in financing activities: $96 million; debt repayments: $140 million
Total debt: $14.954 billion; Net debt: $7.402 billion
Current ratio: 3.13x; Quick ratio: 1.99x
Inventory: $9.007 billion; Inventory turnover: 0.565x; DSO ~72.7 days; DIO ~159 days
Debt to capitalization: 23.5%; Debt to equity: 0.307x; Interest coverage: 15.83x
Shareholder metrics: Payout ratio ~8.21%; Dividend yield ~0.13%
Valuation backdrop: Price-to-book ~2.11x; Price-to-sales ~12.71x; Price-to-earnings ~16.17x
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
8.05B |
3.91% |
-7.53% |
| Gross Profit |
2.96B |
8.26% |
-11.50% |
| Operating Income |
1.77B |
16.49% |
-18.45% |
| Net Income |
1.58B |
78.47% |
-15.35% |
| EPS |
1.42 |
77.50% |
-15.48% |
Key Financial Ratios
operatingProfitMargin
22%
operatingCashFlowPerShare
$3.54
freeCashFlowPerShare
$6.41
dividendPayoutRatio
8.21%
Management Commentary
No earnings-call transcript data provided in the input. Consequently, no management quotes or theme-specific highlights could be extracted from the transcript. If available, quotes would be grouped by themes such as strategy, operations, market conditions, and guidance with accompanying context and significance.
Forward Guidance
The supplied data does not include management-provided forward guidance or targets for QQ3/QQ4 2025. Given the memory cycle’s inherent seasonality and ongoing AI/data-center demand dynamics, investors should monitor: 1) memory pricing and mix stabilization as supply-demand rebalances; 2) capex discipline and utilization of the manufacturing base; 3) AI-driven memory demand trends and data-center refresh cycles; 4) net debt trajectory and free cash flow generation to sustain capital returns. Absent explicit guidance, the outlook should be framed around the company’s ability to maintain profitability in a cyclically choppy environment and to convert cash flow into debt reduction or balanced capital returns over the next few quarters.