Micron CEO Suggests Tariffs Could Have Prompted Inventory Pull-In

Micron CEO Suggests Tariffs Could Have Prompted Inventory Pull-In

Micron Technology, Inc. (Nasdaq: MU) reported record fiscal Q3 revenue of $9.30 billion, with a projected 15% growth for Q4 2025. The company's CEO, Sanjay Mehrotra, suggested that tariffs could have prompted an inventory pull-in, contributing to the strong Q3 performance [1].

Mehrotra highlighted that the company's record revenue was driven by all-time-high DRAM revenue, including nearly 50% sequential growth in HBM revenue. Data center revenue more than doubled year-over-year and reached a quarterly record, while consumer-oriented end markets also showed strong sequential growth. The company's GAAP net income reached $1.89 billion, with diluted earnings per share of $1.68, while non-GAAP net income was $2.18 billion, translating to $1.91 per diluted share [1].

Micron's operating cash flow increased to $4.61 billion, showcasing improved cash generation capabilities. The company ended the quarter with cash, marketable investments, and restricted cash of $12.22 billion. The Board of Directors declared a quarterly dividend of $0.115 per share, payable in July [1].

Micron projects revenue of approximately $10.7 billion for fiscal Q4 2025, with a potential variance of $300 million. The company's outlook for the fourth quarter includes a GAAP revenue of $10.7 billion and a non-GAAP revenue of $10.7 billion, with a gross margin of 41.0% and 42.0%, respectively [1].

While the company's financial performance is strong, concerns about its reliance on non-GAAP measures for financial performance and high capital expenditures of $2.66 billion may impact cash flow and financial flexibility. The company's GAAP net income growth was less impressive compared to non-GAAP earnings, raising questions about profitability sustainability [1].

In addition to the company's strong financial performance, recent insider trading activity and institutional holdings indicate a positive outlook for Micron. Insiders have sold 28 times in the past 6 months, while institutional investors have added shares to their portfolios [2]. Wall Street analysts have issued buy ratings on the stock, with Citigroup and Wedbush issuing positive ratings in recent months [3].

Micron will host its investor conference call on June 25, 2025, at 2:30 p.m. Mountain Time to discuss its third quarter financial results and provide forward-looking guidance for its fourth quarter. A live webcast of the call will be available online at investors.micron.com [1].

References:

[1] https://www.quiverquant.com/news/Micron+Technology+Reports+Record+Q3+Revenue+of+%249.30+Billion+with+Projected+15%25+Growth+for+Q4

[2] https://www.quiverquant.com/news/Micron+Technology+Reports+Record+Q3+Revenue+of+%249.30+Billion+with+Projected+15%25+Growth+for+Q4

[3] https://www.quiverquant.com/news/Micron+Technology+Reports+Record+Q3+Revenue+of+%249.30+Billion+with+Projected+15%25+Growth+for+Q4