Micron Technology Inc. has reported significant improvements in its financial performance for the fiscal year ended August 28, 2025, as outlined in its latest 10-K filing.
The company's total revenue for 2025 increased by 49% compared to 2024, reaching $37.4 billion. This growth was primarily driven by a 62% increase in sales of DRAM products and an 18% increase in sales of NAND products.
The consolidated gross margin percentage improved to 40% for 2025 from 22% for 2024, with DRAM margins benefiting from increased average selling prices and an increased mix of higher-margin products, including HBM. NAND margins improved due to cost reductions.
Operating income for 2025 increased significantly to $9.77 billion, representing 26% of total revenue, compared to $1.30 billion in 2024. This improvement was driven by higher bit shipments and average selling prices across various business units, particularly in the cloud server markets for HBM, DIMMs, and low-power server DRAM products.
The company's effective tax rate for 2025 was 11.6%, a substantial decrease from 36.4% in 2024, primarily due to changes in profitability and tax incentive arrangements in certain jurisdictions.
The One Big Beautiful Bill Act (OBBBA), which was enacted on July 4, 2025, introduced broad changes to the U.S. tax code, including modifications to corporate and international tax provisions, which are expected to impact Micron Technology Inc. beginning in 2026 and 2027.
The market has reacted to these announcements by moving the company's shares 2.13% to a price of $187.54. For the full picture, make sure to review MICRON TECHNOLOGY INC's 10-K report.
