Executive Summary

Micron delivered record fiscal Q3 2025 revenue of $9.30B, up 15% sequentially and 37% YoY, with non-GAAP EPS of $1.91; data center revenue more than doubled YoY and HBM revenue grew ~50% sequentially, driving all-time-high DRAM revenue .
Gross margin reached 39.0% (non-GAAP), above guidance midpoint, as pricing improved across DRAM/NAND despite a heavier consumer mix; adjusted free cash flow rose to $1.95B .
Initial FQ4 guidance called for $10.7B revenue and 42% non-GAAP GM; Micron later raised FQ4 guidance to $11.2B revenue and 44.5% non-GAAP GM, citing stronger DRAM pricing and execution; non-GAAP EPS lifted from $2.50 to $2.85 (raised) .
Liquidity stood at $15.7B and net debt fell to ~$3B, providing flexibility to invest in HBM capacity and 1-gamma DRAM while maintaining dividends and opportunistic buybacks .

What Went Well and What Went Wrong

What Went Well

Record quarter with revenue $9.30B and non-GAAP EPS $1.91; “Micron delivered record revenue in fiscal Q3… we are on track to deliver record revenue with solid profitability and free cash flow in fiscal 2025” — Sanjay Mehrotra .
HBM momentum: HBM revenue rose nearly 50% sequentially; DRAM non-GAAP gross margin expanded, with steady HBM pricing and strong yield ramp on 12‑high HBM3E; HBM run-rate surpassed $6B based on Q3 performance .
Cash generation and balance sheet: operating cash flow $4.61B; adjusted FCF $1.95B; liquidity $15.7B; net debt ~$3B, enabling continued investment and capital returns — CFO .

What Went Wrong

Consumer mix weighed blended DRAM ASPs; DRAM prices were up like-for-like but the higher consumer-oriented mix lowered blended ASPs sequentially; NAND pricing declined high single digits amid more challenging market backdrop .
Legacy DRAM (DDR4) shortages amid EOL transition; DDR4 is low single-digit % of revenue in the second half and on allocation; LPDDR4+DDR4 combined ~10% revenue; customers face tightening supply near term .
Tariff-related customer pull-ins added modest noise to order timing, though management emphasized overall impact was small and demand signals remain constructive .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD Billions)	$6.811	$8.053	$9.301
GAAP Diluted EPS ($)	$0.30	$1.41	$1.68
Non-GAAP Diluted EPS ($)	$0.62	$1.56	$1.91
GAAP Gross Margin (%)	26.9%	36.8%	37.7%
Non-GAAP Gross Margin (%)	28.1%	37.9%	39.0%
GAAP Operating Margin (%)	10.6%	22.0%	23.3%
Non-GAAP Operating Margin (%)	13.8%	24.9%	26.8%
Operating Cash Flow ($USD Billions)	$2.482	$3.942	$4.609
Adjusted Free Cash Flow ($USD Billions)	$0.425	$0.857	$1.949

DRAM/NAND and Business Unit mix

Metric	Q3 2025
DRAM Revenue ($USD Billions)	$7.1; bits +>20% QoQ; blended prices down low single digits due to consumer mix
NAND Revenue ($USD Billions)	$2.2; bits +mid-20s% QoQ; prices down high single digits
CNBU Revenue ($USD Billions)	$5.1 (+11% QoQ; quarterly record)
Storage BU Revenue ($USD Billions)	$1.5 (+4% QoQ)
Mobile BU Revenue ($USD Billions)	$1.6 (+45% QoQ)
Embedded BU Revenue ($USD Billions)	$1.2 (+20% QoQ)

Balance sheet and liquidity KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Cash & Equivalents ($USD Billions)	$6.693	$7.552	$10.163
Cash, Marketable Investments & Restricted Cash ($USD Billions)	$8.75	$9.60	$12.22
Total Debt ($USD Billions)	$13.252 (LT)	$13.851 (LT)	$15.003 (LT)
Inventory ($USD Billions)	$8.705	$9.007	$8.727
Inventory Days (DIO)	—	—	139 days
Liquidity ($USD Billions)	—	—	$15.7 (incl. untapped facility)
Net Debt ($USD Billions)	—	—	~$3 (CFO comment)

Guidance Changes

Metric	Period	Previous Guidance (Jun 25)	Updated Guidance (Aug 11)	Change
Revenue ($USD Billions)	FQ4-25	$10.7 ± $0.3	$11.2 ± $0.1	Raised
Non-GAAP Gross Margin (%)	FQ4-25	42.0% ± 1.0%	44.5% ± 0.5%	Raised
GAAP Gross Margin (%)	FQ4-25	41.0% ± 1.0%	43.5% ± 0.5%	Raised
Non-GAAP OpEx ($USD Billions)	FQ4-25	$1.20 ± $0.02	$1.22 ± $0.015	Slightly Raised
GAAP OpEx ($USD Billions)	FQ4-25	$1.35 ± $0.02	$1.37 ± $0.015	Slightly Raised
Non-GAAP EPS ($)	FQ4-25	$2.50 ± $0.15	$2.85 ± $0.07	Raised
GAAP EPS ($)	FQ4-25	$2.29 ± $0.15	$2.64 ± $0.07	Raised

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 FY25)	Current Period (Q3 FY25)	Trend
AI/HBM trajectory	HBM revenue crossed $1B in Q2; record data center DRAM; launched 1‑gamma node	HBM revenue +~50% QoQ; HBM run-rate >$6B; 12‑high HBM3E yields/volume ramp strong; HBM4 sampled; targeting 2026 ramp	Strengthening
LPDRAM for servers	Data center mix rising; data center rev surpassed 50% of total in Q1	Sole-source LPDRAM position; multiple billions FY25 revenue across LP + high-capacity DIMMs	Expanding
Consumer/PC/mobile	Q1: consumer weakness near term; expected 2H recovery	Consumer-oriented growth normalized; mobile up 45% QoQ as inventories cleared	Improving
DDR4/LPDDR4 supply	Not highlighted	DDR4 EOL; DDR4 low single-digit % revenue; on allocation; LPDDR4+DDR4 ~10% revenue	Tightening legacy supply
Tariffs/macro	Not highlighted	Modest tariff-related pull-ins; demand backdrop remains constructive	Manageable noise
R&D execution	1‑gamma launched/planned, EUV; leadership claims	1‑gamma LP5X samples shipped; yields pacing ahead of 1‑beta; HBM4 CMOS logic die internal	Ahead of plan
Data center SSDs	Strong FY momentum	Record SSD share in CQ1; 9550 performance SSD on NVIDIA GB200 NVL72 list	Positive share gains

Management Commentary

“Micron delivered record revenue in fiscal Q3… Data center revenue more than doubled year-over-year… We are on track to deliver record revenue with solid profitability and free cash flow in fiscal 2025” — Sanjay Mehrotra .
“We’re down now to a net debt of $3 billion… $15.7 billion in liquidity… invest in DRAM capacity to serve HBM and other high-value markets, grow the routine dividend, and do opportunistic repurchase” — Mark Murphy .
“HBM pricing is steady; like-for-like DRAM pricing improved sequentially; the mix change on the consumer side lowered the blended ASP” — Sumit Sadana .
“HBM4 trade ratio higher than HBM3E; performance >60% higher, ~20% lower power; sampling now, ramp aligned to customers in 2026” — Sanjay Mehrotra .

Q&A Highlights

Gross margin drivers: Better-than-expected pricing, favorable mix (more DRAM and more data center), and improving costs support the 39% Q3 and 42% Q4 guide; management expects margins can rise beyond Q4 with continued price/mix focus .
DDR4 dynamics: DDR4 pricing tight but small exposure; DDR4 is low single-digit % of revenue; DDR4+LPDDR4 ~10%; EOL process driving allocations and shortages near term .
LPDRAM (server): Micron maintains a sole-source position; expects LP penetration in data center to grow, reinforcing power/performance leadership .
Tariff-related pull-ins: Impact characterized as modest; demand signals for the remainder of CY2025 remain healthy across end markets .
Capital allocation: Net leverage reduced; priority to invest in HBM/DRAM and technology leadership while maintaining dividends and opportunistic buybacks .

Estimates Context

Q3 FY25 actuals vs S&P Global consensus: Micron beat on revenue, EPS, and EBITDA.
- Revenue: $9.301B vs $8.826B consensus — beat*
- Primary EPS (non-GAAP proxy): $1.91 vs $1.595 consensus — beat*
- EBITDA: $4.245B vs $4.137B consensus — beat*
  Values retrieved from S&P Global.

Metric	Q3 2025 Consensus	Q3 2025 Actual
Revenue ($USD Billions)	$8.826*	$9.301
Primary EPS ($)	$1.595*	$1.91
EBITDA ($USD Billions)	$4.138*	$4.245

Subsequent quarter (Q4 FY25) context: Consensus sat near $11.16B revenue and $2.86 EPS; Micron raised guidance mid-quarter, then ultimately reported revenue and EPS above consensus (post-Q4) — confirming momentum in pricing/mix* .
Values retrieved from S&P Global.

Metric	Q4 2025 Consensus	Q4 2025 Actual
Revenue ($USD Billions)	$11.155*	$11.315*
Primary EPS ($)	$2.860*	$3.03*
EBITDA ($USD Billions)	$5.705*	$5.824*

Key Takeaways for Investors

Structural AI tailwinds are translating to financial outperformance: record Q3, stronger-than-initial Q4 guide, and subsequent Q4 beats signal durable price/mix momentum in DRAM/HBM .
HBM execution and roadmap are central to the thesis: 12‑high HBM3E yields/volume ahead of expectations; HBM4 sampling with >60% performance uplift and improved power efficiency positions Micron for 2026 platform ramps .
Near-term mix management matters: more data center and DRAM mix offsets consumer price pressure; management is explicitly steering pricing/mix to sustain margin expansion .
Legacy DRAM EOL creates transitory tightness (DDR4/LPDDR4), but exposure is small; healthy demand signals and allocation discipline minimize risk .
Cash flow and balance sheet provide strategic flexibility: $1.95B adjusted FCF in Q3, $15.7B liquidity, and ~$3B net debt enable continued capacity investments and shareholder returns .
NAND remains more challenging; Micron is managing structural capacity (-10% YoY by FY-end) and pacing node transitions to premium products while closely watching inventories .
For trading: catalysts include continued HBM wins (AMD MI350), data center SSD share gains (9550 on NVIDIA GB200 NVL72), and confirmation of margin trajectory above 42% in the November quarter .

* Values retrieved from S&P Global.

Citations:
Q3 results, margins, EPS, cash flow, and guidance .
Segment/business unit detail, DRAM/NAND pricing, inventory days .
HBM run-rate, HBM3E/4 execution, LPDRAM sole-source .
DDR4 supply and EOL allocations .
Tariff-related comments .
Raised FQ4 guidance .
Prior quarters press releases (Q1/Q2) .
AMD MI350 HBM design-in .

MICRON TECHNOLOGY INC (MU)·Q3 2025 Earnings Summary