Micron Technology's 10-Q filing for the second quarter of 2025 reveals key financial and operational insights. The company reported a total revenue of $8.05 billion, representing an 8% decrease from the previous quarter, primarily driven by declines in sales of both DRAM and NAND products. Despite this, the revenue increased by 38% compared to the second quarter of 2024, primarily due to higher sales of both DRAM and NAND products.
The consolidated gross margin percentage decreased to 37% for the second quarter of 2025 from 38% for the first quarter of 2025, primarily due to a decrease in margins for NAND products, partially offset by an improvement in margins for DRAM products. However, the gross margin percentage improved to 37% for the second quarter of 2025 from 19% for the second quarter of 2024, and to 38% for the first six months of 2025 from 10% for the first six months of 2024, primarily due to increases in average selling prices for both DRAM and NAND, manufacturing cost reductions for NAND, and an increased mix in sales to high-margin cloud products, particularly HBM.
The company's operating income for the second quarter of 2025 was $2.007 billion, showing an improvement compared to the operating loss of $178 million in the second quarter of 2024. The operating income for the first six months of 2025 was $4.401 billion, a significant improvement from the operating loss of $1.738 billion for the first six months of 2024.
In terms of business units, the Compute and Networking Business Unit (CNBU) reported $4.564 billion in revenue, representing a 4% increase from the previous quarter, primarily due to higher sales of HBM products. The Storage Business Unit (SBU) and Mobile Business Unit (MBU) reported decreases of 20% and 30%, respectively, in revenue for the second quarter of 2025 compared to the first quarter of 2025, primarily due to lower storage investments by data center customers and decreases in bit shipments for mobile products. The Embedded Business Unit (EBU) reported a 3% decrease in revenue for the same period, primarily due to decreases in automotive sales.
Micron's financial performance continues to be influenced by industry conditions, including shifts in demand for DRAM and NAND products. The company's ability to manage costs, improve margins, and adapt to changing market dynamics will be critical in navigating the competitive semiconductor memory and storage markets.
The company's relentless focus on technology leadership, operational excellence, and customer-centric approach is expected to drive its future performance as it continues to innovate and deliver high-performance memory and storage solutions. Today the company's shares have moved -8.0% to a price of $94.72. Check out the company's full 10-Q submission here.
