Micron Technology Inc. has reported a significant increase in revenue for the fiscal year ended August 28, 2025, with total revenue reaching $37.38 billion, a 49% increase from the previous year. This growth was primarily driven by increases in sales of both DRAM and NAND products.
The company's consolidated gross margin improved to 40% for 2025 from 22% for 2024, reflecting improvements in margins for both DRAM and NAND products. This improvement was attributed to increased average selling prices, an increased mix of higher-margin products, and manufacturing cost reductions driven by improvements in product and process technology.
In terms of business units, the Compute and Networking Business Unit (CMBU) saw a significant increase in revenue, up 257% from the previous year, primarily due to robust AI demand in cloud server markets for high-bandwidth memory (HBM), high-capacity dual in-line memory modules (DIMMS), and low-power server DRAM products. The revenue for the Compute and Data Center Business Unit (CDBU) also increased by 45%, driven by increases in average selling prices for both data center DRAM and NAND and NAND bit shipments due to increased demand for data center SSDs.
Operating income for the CMBU increased substantially, reaching $6.13 billion, up from $244 million in the previous year, driven by higher bit shipments and increases in average selling prices. The CDBU also saw a significant increase in operating income, reaching $2.18 billion, up from $255 million in the previous year, primarily due to increases in data center average selling prices, higher bit shipments, and manufacturing cost reductions.
The company's effective tax rate for 2025 was 11.6%, down from 36.4% in 2024, primarily due to changes in profitability. The company also highlighted the impact of the One Big Beautiful Bill Act ("OBBBA"), which introduced broad changes to the U.S. tax code, including modifications to corporate and international tax provisions, effective for the company beginning in 2026 and 2027.
As a result of these announcements, the company's shares have moved 2.28% on the market, and are now trading at a price of $187.83. If you want to know more, read the company's complete 10-K report here.