MU Q2 2025 Earnings

Call Details

• Call Title: Micron Technology, Inc. Q2 2025 Earnings Call
• Date: March 20, 2025 at 6:30 PM UTC
• Management Team:
  • Satya Kumar (Director of Investor Relations)
  • Sanjay Mehrotra (Chairman, President, and CEO)
  • Mark Murphy (Chief Financial Officer)

Call Summary

Financial Performance

• Total fiscal Q2 revenue was $8.1B, down 8% sequentially and up 38% year over year.
• Fiscal Q2 DRAM revenue was $6.1B, up 47% year over year, and represented 76% of total revenue.
• Fiscal Q2 NAND revenue was $1.9B, up 18% year over year and represented 23% of total revenue.
• Consolidated gross margin was 37.9%, down 160 basis points sequentially.
• Operating income was $2.0B, with an operating margin of 24.9%, down about 260 basis points sequentially.
• Adjusted EBITDA was $4.1B, resulting in an EBITDA margin of 50.7%, up 10 basis points sequentially.
• Non-GAAP diluted EPS was $1.56 in fiscal Q2, above the high end of prior guidance.
• Operating cash flow in the quarter was over $3.9B and capital expenditures were $3.1B, producing free cash flow of $857M.
• Ending inventory was $9.0B or 158 days, up nine days from the prior quarter, and cash and investments were $9.6B with total liquidity of $12.1B.

Guidance

• Fiscal Q3 revenue is guided to $8.8B, plus or minus $0.2B.
• Fiscal Q3 gross margin is guided to 36.5%, plus or minus 100 basis points, representing a sequential decline versus Q2.
• Fiscal Q3 operating expenses are forecast at approximately $1.13B, plus or minus $15M, and fiscal 2025 OPEX is expected to increase by over 10% year over year.
• Non-GAAP EPS for fiscal Q3 is expected to be $1.57, plus or minus $0.10, based on a share count of approximately 1.14B shares.
• The company expects DRAM and NAND bit shipments to grow sequentially in fiscal Q3, but expects Q3 gross margin to be lower sequentially due to higher consumer-oriented volumes and NAND underutilization.
• Fiscal Q3 CapEx is forecast to be over $3B and fiscal 2025 CapEx remains approximately $14B.
• The company estimates a non-GAAP tax rate of approximately 14% for fiscal Q3 and fiscal 2025.
• Guidance excludes potential impacts from any newly announced tariffs due to uncertainty around timing and implementation.