Fri, Mar 21, 10:01 AM (36 days ago)
**Micron Technology, Inc. (MU) Q2 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $8.053 billion, down 8% from Q1 2025 due to decreased sales of DRAM and NAND products. Revenue increased 38% year-over-year (YoY) due to increased sales of DRAM and NAND products. - **Gross Margin:** 37%, down from 38% in Q1 2025 due to decreased margins for NAND products. Gross margin improved YoY due to increased average selling prices for DRAM and NAND, manufacturing cost reductions for NAND, and an increased mix in sales to high-margin cloud products. - **Operating Income:** $1.773 billion, down from $2.174 billion in Q1 2025. Operating income improved YoY due to increased average selling prices and high-value HBM products. - **Net Income:** $1.583 billion, down from $1.870 billion in Q1 2025. Net income improved YoY due to increased revenue and improved gross margins. - **Earnings Per Share (EPS):** $1.42 basic and $1.41 diluted, down from $2.10 basic and $2.08 diluted in Q1 2025. EPS improved YoY due to increased net income. **Cash Flow:** - **Operating Cash Flow:** $7.186 billion for the first six months of 2025, up from $2.620 billion in the same period of 2024 due to net income adjusted for non-cash items and the effect of a decrease in receivables. - **Investing Cash Flow:** $(6.300) billion for the first six months of 2025, down from $(2.709) billion in the same period of 2024 due to increased expenditures for property, plant, and equipment. - **Financing Cash Flow:** $(326) billion for the first six months of 2025, up from $(458) billion in the same period of 2024 due to repayments of debt and payments of dividends. **Trends and Uncertainties:** - **DRAM Revenue:** Declined slightly from the prior quarter due to customer actions in consumer-oriented markets to reduce inventories, partially offset by continued strength in data center markets. - **NAND Revenue:** Declined due to lower storage growth by data center customers and pricing pressure in consumer-oriented markets. - **Capital Expenditures:** Estimated at $14 billion for 2025, with a significant portion allocated to new memory manufacturing fab facilities in the United States. - **Government Incentives:** Received direct funding agreements with the U.S. Department of Commerce for up to $6.1 billion in direct funding pursuant to the CHIPS Act. **Future Operations Impact:** - **Fab Construction:** Plans to invest in leading-edge memory manufacturing fab facilities in Boise, Idaho, and Clay, New York, with construction site preparation beginning in 2025. - **HBM Advanced Packaging Facility:** Groundbreaking in Singapore to expand advanced packaging capacity beginning in 2027. - **Dividends and Share Repurchases:** Declared a quarterly dividend of $0.115 per share, with a share repurchase authorization of up to $10 billion of outstanding common stock.