Micron Technology Inc. has reported a significant increase in revenue for the fiscal year ended August 28, 2025, with total revenue reaching $37.4 billion, representing a 49% increase from the previous year. This increase was primarily driven by a 62% rise in sales of DRAM products and an 18% increase in sales of NAND products. The company attributes this growth to the strong demand for AI-driven products, particularly in the data center and hyperscale cloud markets.
The consolidated gross margin for 2025 improved to 40% from 22% in 2024, reflecting improvements in margins for both DRAM and NAND products. The company's operating income also saw a significant increase, reaching $9.77 billion in 2025, compared to $1.3 billion in 2024.
The revenue by business unit saw significant growth across the board. The Compute and Networking Business Unit (CMBU) experienced a 257% increase in revenue, primarily driven by robust AI demand in cloud server markets. The revenue for the Compute and Data Center Business Unit (CDBU) increased by 45%, while the Mobile Business Unit (MCBU) and the Embedded Business Unit (AEBU) saw revenue increases of 2% and 3% respectively.
Operating income by business unit also showed substantial improvements. The CMBU operating income increased significantly, primarily due to higher bit shipments and increases in average selling prices driven by robust AI demand in cloud server markets. The CDBU and MCBU also reported improvements in operating income, while the AEBU saw a 3% increase primarily due to manufacturing cost reductions and higher bit shipments.
The company's research and development (R&D) expenses increased by 11% in 2025 compared to 2024, primarily due to increases in employee compensation, depreciation expense, and higher volumes of development and pre-qualification wafers. Selling, general, and administrative (SG&A) expenses also increased by 7% in 2025 compared to 2024, primarily due to an increase in employee compensation and professional services.
Despite these increases in expenses, the company managed to improve its effective tax rate, which decreased from 36.4% in 2024 to 11.6% in 2025. This improvement in the effective tax rate was primarily due to changes in profitability, as well as the impact of tax incentive arrangements.
Looking ahead, the company highlighted the potential impact of the One Big Beautiful Bill Act (OBBBA) and ongoing tax reforms in various jurisdictions, which could have a material impact on its future financial statements. Micron Technology Inc. indicated that it will continue to monitor future developments and regulatory guidance related to these tax reforms.
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.
