Micron Technology Inc.'s 10-K for the fiscal year ending August 28, 2025, reveals a significant surge in revenue, with total revenue reaching $37.4 billion, a 49% increase from the previous year. This growth was primarily driven by a 62% increase in sales of DRAM products and an 18% increase in sales of NAND products.
The company's consolidated gross margin improved to 40% in 2025 from 22% in 2024, primarily due to increases in average selling prices and manufacturing cost reductions for both DRAM and NAND products. Additionally, the operating income surged to $10.8 billion in 2025, a substantial increase from $948 million in 2024.
The revenue by business unit shows significant growth in the Compute and Networking Business Unit (CMBU), which saw a 257% increase in revenue in 2025, driven by robust AI demand in cloud server markets. The Compute and Data Center Business Unit (CDBU) also experienced a 45% increase in revenue, primarily due to increases in average selling prices for data center DRAM and NAND.
Operating income by business unit reflects the substantial improvement in the CMBU, with operating income increasing to $6.1 billion in 2025 from $244 million in 2024. The CDBU also saw a significant increase in operating income, reaching $2.2 billion in 2025 from $255 million in 2024.
The company's effective tax rate decreased to 11.6% in 2025 from 36.4% in 2024, primarily due to changes in profitability and tax incentive arrangements in certain jurisdictions.
The report also mentions the impact of the One Big Beautiful Bill Act (OBBBA) on the U.S. tax code, as well as potential changes in tax laws in foreign jurisdictions, which could have a material impact on the company.
The market has reacted to these announcements by moving the company's shares 2.28% to a price of $187.83. Check out the company's full 10-K submission here.
