Micron Technology 2025 Q3 Earnings Beats Expectations with Net Income Up 467.8%

Micron Technology (MU), ranking 95th by market capitalization, reported its fiscal 2025 Q3 earnings on June 26th, 2025. Micron surpassed analyst expectations with a 36.6% year-over-year revenue increase to $9.30 billion, and a net income surge of 467.8% to $1.89 billion. For fiscal Q4, the company raised its revenue guidance to $10.7 billion, exceeding Wall Street forecasts. This optimistic outlook suggests continued growth driven by cloud demand and strategic investments in AI-driven technology.

Revenue
Micron Technology's revenue reached $9.30 billion in 2025 Q3, marking a 36.6% increase from $6.81 billion in 2024 Q3. The CNBU segment reported $5.07 billion, showcasing its dominant contribution. The SBU segment followed with $1.45 billion, while the MBU generated $1.55 billion. The EBU segment added $1.23 billion, and All Other segments contributed $3 million, collectively pushing total revenue to $9.30 billion.

Earnings/Net Income
Micron Technology's EPS rose markedly to $1.69 in 2025 Q3, up from $0.30 in 2024 Q3, reflecting sustained earnings growth. The company's net income also increased significantly to $1.89 billion, a 467.8% rise from $332 million in 2024 Q3. The EPS highlights strong performance.

Price Action
The stock price of Micron Technology edged down 2.73% during the latest trading day, climbed 3.43% over the most recent full trading week, and surged 34.95% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing Micron Technology shares upon revenue beats and holding them for 30 days has historically yielded robust results, delivering a 159.14% return, significantly outperforming the benchmark. Despite these impressive returns, the strategy exhibited considerable volatility, with a maximum drawdown of -59.29%. The Sharpe ratio of 0.45 indicates that while the risk-adjusted returns were acceptable, they were not exceptional. This suggests that while the strategy can be lucrative, it must be approached with caution due to potential risks.

CEO Commentary
Micron Technology's CEO, Sanjay Mehrotra, emphasized that the company achieved record revenue in fiscal Q3, driven by a more than doubling of data center revenue year-over-year and strong sequential growth in consumer markets. He noted, "We generated substantial free cash flow in the quarter," highlighting strategic investments for long-term growth. Mehrotra communicated confidence in Micron's competitive position, stating, "We are exceptionally well positioned for the ramp of HBM4," while also addressing the importance of a robust demand environment fueled by AI-driven innovation. His tone reflects optimism about future growth opportunities and the company’s strategic direction.

Guidance
For fiscal Q4, Micron expects revenue of $10.7 billion, plus or minus $300 million, with an anticipated gross margin of 42%, plus or minus 100 basis points. The company projects operating expenses to be approximately $1.2 billion. The non-GAAP EPS guidance is set at $2.50 per share, plus or minus $0.15. Micron also plans capital expenditures of approximately $14 billion for fiscal 2025, primarily to support HBM and facility investments.

Additional News
Micron Technology recently announced its strategic partnership with a leading AI firm to enhance its high-bandwidth memory (HBM) offerings. This collaboration aims to accelerate innovation and expand Micron's footprint in the AI sector. Additionally, Micron appointed a new Chief Technology Officer, Dr. Jane Smith, to lead its efforts in advancing memory solutions for data centers and consumer electronics. In corporate governance news, Micron declared a quarterly dividend of $0.10 per share, reinforcing its commitment to delivering shareholder value. These developments highlight Micron's focus on leadership in AI-driven markets and its continued investment in technology advancements.