Micron’s fiscal 2025 performance represents a transformative year driven by the AI revolution and strong memory market dynamics. Full-year revenue of $37.38 billion increased 49% year-over-year, significantly outpacing the prior year’s $25.11 billion. This growth was primarily driven by robust demand for high-bandwidth memory (HBM) and other AI-optimized memory solutions.

Profitability metrics showed remarkable improvement across all measures. GAAP net income for fiscal 2025 reached $8.54 billion, or $7.59 per diluted share, compared to just $778 million, or $0.70 per share, in fiscal 2024. This represents a 10-fold increase in earnings, demonstrating the operating leverage inherent in Micron’s business model during strong demand cycles.

Q4 2025 specifically delivered outstanding results with revenue of $11.32 billion, up 46% year-over-year and 22% sequentially. GAAP net income for the quarter was $3.20 billion, or $2.83 per diluted share, compared to $887 million, or $0.79 per share, in Q4 2024. On a non-GAAP basis, Q4 net income was $3.47 billion, or $3.03 per diluted share.

Gross margin expansion was particularly impressive, with Q4 gross margin reaching 44.7%, an increase of 930 basis points year-over-year. Full-year gross margin improved to 39.8% from 22.4% in fiscal 2024, reflecting both strong pricing environment and improved product mix toward higher-value AI and data center products.

Operating cash flow generation was exceptional at $17.53 billion for fiscal 2025, more than doubling from $8.51 billion in fiscal 2024. This strong cash generation provides Micron with significant financial flexibility to invest in next-generation technology development and capacity expansion while maintaining a strong balance sheet.

Cloud Memory Business Unit was the standout performer, generating $4.54 billion in Q4 revenue with industry-leading margins of 59% gross and 48% operating. This segment benefited tremendously from the AI boom, with strong demand for High Bandwidth Memory (HBM) and other specialized memory solutions required for AI training and inference workloads. The unit’s performance demonstrates Micron’s technology leadership in this critical growth market.

Core Data Center Business Unit delivered solid performance with $1.58 billion in Q4 revenue, achieving 41% gross margin and 25% operating margin. While revenue was down year-over-year due to enterprise spending normalization, the unit showed sequential improvement and positioned for recovery as data center investment patterns stabilize.

Mobile and Client Business Unit generated $3.76 billion in Q4 revenue with improving margins of 36% gross and 29% operating. This represents a significant recovery from earlier in fiscal 2025, benefiting from smartphone market stabilization and PC demand normalization. The unit’s performance improved throughout the year as inventory corrections completed.

Automotive and Embedded Business Unit achieved $1.43 billion in Q4 revenue with 31% gross margin and 20% operating margin. This segment continues to benefit from the long-term trend of increasing semiconductor content per vehicle, driven by advanced driver assistance systems (ADAS), infotainment systems, and the gradual transition to electric vehicles.

The diversity of Micron’s business units provides natural hedging against cyclical downturns in individual markets while positioning the company to benefit from multiple secular growth trends including AI, automotive electrification, and edge computing expansion.

Micron’s position as a leading memory technology innovator has become increasingly critical as the AI revolution drives unprecedented demand for specialized memory solutions:

AI Memory Leadership

• HBM Technology: Micron is ramping production of HBM3E, the industry’s most advanced high-bandwidth memory, essential for training and running large language models
• Data Center Optimization: Specialized memory solutions designed for AI workloads, including optimized DRAM and NAND products
• Edge AI Applications: Low-power memory solutions enabling AI capabilities in mobile devices, automotive systems, and IoT applications
• Manufacturing Excellence: Advanced manufacturing capabilities and yield optimization driving cost advantages

Strategic Positioning

As CEO Sanjay Mehrotra noted: “As the only U.S.-based memory manufacturer, Micron is uniquely positioned to capitalize on the AI opportunity ahead.” This positioning provides several strategic advantages:

• Supply chain security for critical U.S. infrastructure and defense applications
• Close collaboration with leading U.S. technology companies driving AI innovation
• Access to government incentives and support for domestic semiconductor manufacturing
• Technology leadership in next-generation memory architectures

Micron’s data center business achieved all-time highs in fiscal 2025, driven by AI infrastructure buildout. The company is entering fiscal 2026 with its most competitive product portfolio to date, including leadership positions in HBM, DDR5, and advanced NAND technologies critical for AI applications.

Micron provided strong guidance for Q1 2026, indicating continued momentum from AI-driven demand:

• Revenue: $12.50 billion ± $300 million, representing sequential growth and continued strength
• GAAP gross margin: 50.5% ± 1.0%, reflecting strong pricing and favorable product mix
• Non-GAAP gross margin: 51.5% ± 1.0%, demonstrating operational excellence
• GAAP diluted EPS: $3.56 ± $0.15
• Non-GAAP diluted EPS: $3.75 ± $0.15

The guidance reflects several positive trends:

• Continued AI Momentum: Strong demand for AI memory solutions expected to persist through 2026
• Margin Expansion: Gross margins exceeding 50% demonstrate the value of Micron’s technology leadership
• Sequential Growth: Q1 2026 revenue guidance of $12.5B represents continued sequential growth
• Market Recovery: Broad-based recovery across end markets supporting sustained growth

Management’s confidence is supported by several factors: strong AI infrastructure investment cycles, inventory normalization across traditional markets, and Micron’s technology leadership in critical growth segments. The company is well-positioned to benefit from multi-year trends in AI, automotive, and edge computing.

Micron’s strong financial performance has significantly strengthened its balance sheet and cash position:

• Cash and investments: $11.94 billion as of August 28, 2025
• Net capital expenditures: $13.80 billion for fiscal 2025, supporting capacity expansion and technology transitions
• Adjusted free cash flow: $3.72 billion for fiscal 2025, demonstrating strong cash generation capabilities
• Total assets: $82.8 billion with strong liquidity position

Capital Allocation Priorities

Micron’s capital allocation strategy focuses on:

• Technology Leadership: Continued investment in R&D and advanced manufacturing capabilities
• Capacity Expansion: Strategic capacity additions in high-growth segments like HBM and advanced NAND
• Shareholder Returns: Quarterly dividend of $0.115 per share declared for Q1 2026
• Balance Sheet Flexibility: Maintaining strong liquidity for strategic opportunities

The company’s robust cash flow generation provides flexibility to invest in growth while returning capital to shareholders. Strong balance sheet metrics support continued investment in cutting-edge manufacturing facilities and R&D capabilities essential for maintaining technology leadership.