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Micron Q3 2025 Earnings: Record Revenue and Strong Growth Across Business Units

June 25, 2025

Highlights

  • Total fiscal Q3 revenue: $9.3 billion (+37% YoY, +15% sequentially)
  • DRAM revenue: $7.1 billion (+51% YoY, 76% of total revenue)
  • NAND revenue: $2.2 billion (+4% YoY, 23% of total revenue)
  • Compute and Networking Business Unit revenue: $5.1 billion (+11% sequentially)
  • Mobile Business Unit revenue: $1.6 billion (+45% sequentially)
  • Consolidated gross margin: 39% (+110 basis points sequentially)
  • Operating income: $2.5 billion (26.8% margin, +13 percentage points YoY)
  • Free cash flows: $1.9 billion (highest in over 6 years)
  • Cash and investments: $12.2 billion (record high)

Micron Technology has reported its fiscal third-quarter results for 2025, showcasing record revenue and impressive year-over-year growth. Benefiting from a robust demand across data center and consumer markets, the company achieved key milestones in both revenue and profitability.

Record Revenue Driven by Strong DRAM and NAND Sales

Micron's total revenue for the quarter reached an impressive $9.3 billion, marking a 37% increase year-over-year and a 15% increase sequentially. The growth was predominantly driven by the DRAM segment, which reported revenues of $7.1 billion, a staggering 51% rise from the previous year and accounting for 76% of the company's total revenue. NAND also contributed positively with $2.2 billion in revenue, representing a 4% increase year-over-year.

Business Segments Performance

The Compute and Networking Business Unit achieved revenues of $5.1 billion, up 11% sequentially, supported by a near 50% sequential increase in High-Bandwidth Memory (HBM) alongside growth in high-capacity and low-power server DRAM.

The Mobile Business Unit experienced a 45% sequential surge, reaching $1.6 billion, thanks to reduced customer inventories and rising demand driven by DRAM content growth.

Financial Stability and Free Cash Flow

Micron reported a consolidated gross margin of 39%, which was a 110 basis points increase sequentially. The company achieved an operating income of $2.5 billion, reflecting a 26.8% margin, which is 13 percentage points higher than the previous year.

Free cash flows stood at an impressive $1.9 billion, marking the highest quarterly amount in over six years. This financial strength is further reinforced by a record $12.2 billion in cash and investments.

Investor Takeaways

With its strategic focus on AI-driven demand and technological advancements in DRAM and NAND, Micron is well-positioned to continue its strong performance. Investors will note the company's solid execution in achieving record revenue and maintaining a growing cash reserve, underscoring its capability to invest in future growth while assuring returns to shareholders.