Micron's Q1 Revenue Jumps 56% on Strong Demand, Net Income Triples

TL;DR

**Micron is back, crushing estimates with massive revenue and profit growth, signaling a strong memory market rebound driven by AI demand.**

AI Summary

Micron Technology, Inc. (MU) reported a significant financial upturn for the three months ended November 27, 2025, with revenue soaring to $13.643 billion, a substantial increase from $8.709 billion in the prior year. Net income dramatically rose to $5.240 billion, compared to $1.870 billion in the same period last year. This robust performance was driven by an improved gross margin of $7.646 billion, up from $3.348 billion. Operating income also saw a strong increase, reaching $6.136 billion from $2.174 billion. The company's cash and cash equivalents increased to $9.731 billion from $9.642 billion as of August 28, 2025. Long-term debt was reduced to $11.187 billion from $14.017 billion, reflecting strategic debt repayments of $2.943 billion. Capital expenditures remained high at $5.389 billion, indicating continued investment in property, plant, and equipment, including a new incentive arrangement for Singapore manufacturing facilities.

Why It Matters

Micron's impressive financial results, particularly the 56% revenue growth and tripling of net income, signal a strong recovery and robust demand in the memory and storage market, especially for AI-driven applications. This performance could lead to increased investor confidence and potentially higher stock valuations, benefiting shareholders. For employees, continued profitability and investment in facilities, like the Singapore modernization, suggest job security and growth opportunities. Customers can expect continued innovation in high-performance DRAM and NAND products. In the broader market, Micron's strength indicates a healthy semiconductor sector, potentially impacting competitors like Samsung and SK Hynix by setting a high bar for performance and technological advancement.

Risk Assessment

Risk Level: medium — While Micron's financial performance is strong, the company faces 'medium' risk due to significant capital expenditures and market cyclicality. Expenditures for property, plant, and equipment were $5.389 billion for the quarter, a substantial investment that requires sustained demand. Additionally, the company's 'Risk Factors' section (Item 1A) highlights potential impacts from business, economic, political, legal, and regulatory developments, including tariffs and trade regulations, which could affect global operations and future profitability.

Analyst Insight

Investors should consider increasing their exposure to MU, given the strong revenue growth of 56% and net income tripling to $5.240 billion, indicating robust demand for memory solutions, particularly in AI. The strategic debt reduction of $2.943 billion also strengthens the balance sheet. However, monitor the high capital expenditures of $5.389 billion and global trade policies, as these could impact future profitability and growth.

Financial Highlights

debt To Equity

0.21

revenue

$13.643B

operating Margin

45.0%

total Assets

$85.971B

total Debt

$11.756B

net Income

$5.240B

eps

$4.66

gross Margin

56.0%

cash Position

$9.731B

revenue Growth

+56.6%

Revenue Breakdown

Key Numbers

• $13.643B — Revenue (Increased from $8.709 billion in the prior year, a 56.6% increase.)
• $5.240B — Net Income (Increased from $1.870 billion in the prior year, a 180.2% increase.)
• $7.646B — Gross Margin (Increased from $3.348 billion in the prior year, a 128.4% increase.)
• $4.66 — Basic Earnings Per Share (Increased from $1.68 in the prior year.)
• $11.187B — Long-term Debt (Decreased from $14.017 billion as of August 28, 2025, reflecting $2.943 billion in repayments.)
• $5.389B — Expenditures for Property, Plant, and Equipment (Increased from $3.206 billion in the prior year, indicating significant capital investment.)
• $8.411B — Net Cash Provided by Operating Activities (Increased from $3.244 billion in the prior year, showing strong operational cash generation.)
• $9.731B — Cash and Cash Equivalents (Increased from $9.642 billion as of August 28, 2025.)
• 1,125,509,261 — Outstanding Shares (As of December 10, 2025.)
• $878M — Proceeds from Government Incentives (Increased from $65 million in the prior year, supporting capital investments.)

Key Players & Entities

• Micron Technology, Inc. (company) — registrant
• U.S. Securities and Exchange Commission (regulator) — filing recipient
• Nasdaq Global Select Market (company) — exchange where MU is listed
• FASB (regulator) — issues accounting standards
• Singapore (person) — location of manufacturing facilities
• Samsung (company) — competitor
• SK Hynix (company) — competitor
• $13.643 billion (dollar_amount) — revenue for the three months ended November 27, 2025
• $5.240 billion (dollar_amount) — net income for the three months ended November 27, 2025
• $2.943 billion (dollar_amount) — debt repayments for the three months ended November 27, 2025

FAQ

Risk Factors

• Semiconductor Market Volatility [high — market]: The semiconductor industry, particularly the memory market, is subject to significant cyclicality and demand fluctuations. A downturn in global economic conditions or a slowdown in key end markets like PCs, smartphones, and data centers could materially impact Micron's revenue and profitability.
• Manufacturing and Supply Chain Disruptions [high — operational]: Micron's operations are concentrated in a few key manufacturing facilities. Any disruptions due to natural disasters, geopolitical events, pandemics, or supply chain issues could significantly impact production capacity and product availability, leading to lost sales and increased costs.
• Geopolitical Tensions and Trade Restrictions [high — regulatory]: The company operates in a global environment with increasing geopolitical tensions and potential trade restrictions, particularly concerning China. These factors could affect Micron's ability to access key markets, source materials, and manufacture products, leading to increased compliance costs and potential revenue loss.
• Capital Intensity and Investment Requirements [medium — financial]: The semiconductor industry requires substantial and ongoing capital expenditures for research, development, and manufacturing. Micron's significant investment of $5.389 billion in property, plant, and equipment indicates this high capital intensity. Failure to generate sufficient returns on these investments could strain financial resources.
• Intellectual Property Disputes [medium — legal]: Micron operates in a highly competitive technology landscape where intellectual property is critical. The company may face claims of infringement or be involved in disputes related to its own intellectual property, which could result in costly litigation and potential damages.
• Technological Obsolescence [high — operational]: Rapid technological advancements in the semiconductor industry mean that products can become obsolete quickly. Micron must continuously innovate and invest in new technologies to remain competitive. Failure to do so could lead to a loss of market share and reduced profitability.

Industry Context

Micron operates in the highly competitive and cyclical semiconductor memory market, facing intense competition from global players like Samsung Electronics and SK Hynix. The industry is characterized by rapid technological advancements, significant capital intensity, and sensitivity to global economic conditions and demand from key sectors such as data centers, automotive, and consumer electronics.

Regulatory Implications

Micron faces regulatory scrutiny related to international trade policies, particularly concerning its operations and sales in China. Compliance with evolving export controls, tariffs, and national security regulations is critical to avoid disruptions and potential penalties. Additionally, environmental regulations related to manufacturing processes and chemical usage are ongoing considerations.

What Investors Should Do

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Key Dates

• 2025-11-27: End of Q1 Fiscal Year 2026 — Reported strong financial results with significant revenue and net income growth, indicating a positive market turn.
• 2025-08-28: End of Fiscal Year 2025 — Previous reporting period, providing a baseline for year-over-year comparisons.
• 2025-11-28: End of Q1 Fiscal Year 2025 — Prior year comparable period, showing a substantial increase in performance compared to this period.
• 2025-12-10: Outstanding Shares Record Date — Indicates the number of shares outstanding for EPS calculations, important for investor valuation.

Glossary

Gross Margin

The difference between revenue and the cost of goods sold, representing the profit a company makes after deducting the direct costs associated with producing its goods or services. (Micron's gross margin significantly increased to $7.646 billion from $3.348 billion, indicating improved pricing power and/or cost efficiencies.)

Operating Income

Profitability from a company's core business operations, calculated as gross margin minus operating expenses (like R&D and SG&A). (A substantial rise in operating income to $6.136 billion from $2.174 billion highlights the company's enhanced operational efficiency and profitability.)

Capital Expenditures (CapEx)

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, plant, buildings, technology, or equipment. (Micron's continued high CapEx of $5.389 billion signals ongoing investment in future growth and technological advancement, crucial in the semiconductor industry.)

Cash and Cash Equivalents

The most liquid assets a company has, including physical currency, coin, and balances in bank accounts. (A slight increase to $9.731 billion indicates healthy liquidity, supporting ongoing operations and investments.)

Long-term Debt

Financial obligations that are due more than one year from the balance sheet date. (A reduction in long-term debt to $11.187 billion from $14.017 billion demonstrates effective debt management and deleveraging.)

Basic Earnings Per Share (EPS)

The portion of a company's profit allocated to each outstanding share of common stock, calculated without considering the dilutive effects of potential stock options or convertible securities. (The significant increase in basic EPS to $4.66 from $1.68 reflects the substantial rise in net income on a per-share basis.)

Government Incentives

Financial support provided by governments to encourage specific economic activities, such as investment in manufacturing or research and development. (An increase in proceeds from government incentives to $878 million from $65 million shows growing support for Micron's capital investments, particularly in Singapore.)

Year-Over-Year Comparison

Micron Technology Inc. has demonstrated a remarkable turnaround compared to the prior year's filing. Revenue surged by 56.6% to $13.643 billion, while net income saw an explosive increase of 180.2% to $5.240 billion. This performance is underpinned by a substantial improvement in gross margin, which more than doubled to 56.0% from 38.4% in the prior year. Operating income also grew dramatically, reflecting enhanced profitability. The company has also actively managed its balance sheet, reducing long-term debt by $2.943 billion, while maintaining a strong cash position. Capital expenditures remain high, indicating continued investment in future growth.

Key Financial Figures

• $0.10 — ich registered Common Stock, par value $0.10 per share MU Nasdaq Global Select Marke
• $3.5 billion — January 2035 Revolving Credit Facility $3.5 billion Revolving Credit Facility due March 203

Filing Documents

• mu-20251127.htm (10-Q) — 1296KB
• ex311-ceocertq1x26.htm (EX-31.1) — 10KB
• ex312-cfocertq1x26.htm (EX-31.2) — 10KB
• ex321-906ceocertq1x26.htm (EX-32.1) — 4KB
• ex322-906cfocertq1x26.htm (EX-32.2) — 4KB
• mu-20251127_g1.jpg (GRAPHIC) — 13KB
• 0000723125-25-000046.txt ( ) — 8044KB
• mu-20251127.xsd (EX-101.SCH) — 49KB
• mu-20251127_cal.xml (EX-101.CAL) — 80KB
• mu-20251127_def.xml (EX-101.DEF) — 235KB
• mu-20251127_lab.xml (EX-101.LAB) — 716KB
• mu-20251127_pre.xml (EX-101.PRE) — 483KB
• mu-20251127_htm.xml (XML) — 1237KB

. Financial Information

PART I . Financial Information Item 1 .

Financial Statements

Financial Statements : 5 Consolidated Statements of Operations 5 Consolidated Statements of Comprehensive Income (Loss) 6 Consolidated Balance Sheets 7 Consolidated Statements of Changes in Equity 8 Consolidated Statements of Cash Flows 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10 Item 2 .

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Results of Operations 28 Liquidity and Capital Resources 31 Item 3 .

Quantitative and Qualitative Disclosures a bout Market Risk

Quantitative and Qualitative Disclosures a bout Market Risk 34 Item 4 .

Controls and Procedures

Controls and Procedures 34

Other Information

PART II. Other Information Item 1 .

Legal Proceedings

Legal Proceedings 35 Item 1A.

Risk Factors

Risk Factors 36 Item 2 . U nregistered S ales of Equity Securities and Use of Proceeds 59 Item 5 . Other Information 59 Item 6 . Exhibits 60

Signatures

Signatures 61 2 Table of Contents Definitions of Commonly Used Terms As used herein, "we," "our," "us," and similar terms include Micron Technology, Inc. and its consolidated subsidiaries, unless the context indicates otherwise. All period references are to our fiscal periods unless otherwise indicated. Abbreviations, acronyms, or terms that are commonly used or found in multiple locations throughout this report and include the following: Term Definition Term Definition 2028 Notes 5.375% Senior Notes due April 2028, repaid October 2025 AI Artificial intelligence 2029 A Notes 5.327% Senior Notes due February 2029 CAC China's Cyberspace Administration 2029 B Notes 6.750% Senior Notes due November 2029, repaid October 2025 CHIPS Act U.S. CHIPS and Science Act of 2022 2029 Term Loan A Senior Term Loan A due January 2029, repaid October 2025 DDR Double data rate DRAM 2030 Notes 4.663% Senior Notes due February 2030 EBITDA Earnings before interest, taxes, depreciation, and amortization 2031 Notes 5.300% Senior Notes due January 2031 EUV Extreme ultraviolet lithography 2032 Green Bonds 2.703% Senior Notes due April 2032 HBM High-bandwidth memory 2032 Notes 5.650% Senior Notes due November 2032 Micron Micron Technology, Inc. (Parent Company) 2033 A Notes 5.875% Senior Notes due February 2033 OEM Original equipment manufacturer 2033 B Notes 5.875% Senior Notes due September 2033 R&D Research and development 2035 A Notes 5.800% Senior Notes due January 2035 Revolving Credit Facility $3.5 billion Revolving Credit Facility due March 2030 2035 B Notes 6.050% Senior Notes due November 2035 SOFR Secured Overnight Financing Rate 2041 Notes 3.366% Senior Notes due November 2041 SSD Solid state drive 2051 Notes 3.477% Senior Notes due November 2051 Micron Technology, Inc. is an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technolog

Forward-Looking Statements

Forward-Looking Statements This Form 10-Q contains trend information and other forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements may be identified by words such as "anticipate," "expect," "intend," "pledge," "committed," "plan," "opportunities," "future," "believe," "target," "on track," "estimate," "continue," "likely," "may," "will," "would," "should," "could," and variations of such words and similar expressions. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Specific forward-looking statements include, but are not limited to, statements regarding expected production ramp of certain products; plans to invest in research and development, including the plans to implement EUV lithography; anticipated technological developments and improvements in our products; potential change and impact in our effective tax rate; the timing for construction, expansion, and ramping of production for our facilities, including new memory manufacturing fabs in the United States; receipt, timing, and utilization of government incentives and our ability to satisfy conditions attached to these incentives; the payment of future cash dividends; market conditions and profitability in our industry; future demand for our products and factors that may impact such demand, including developments in AI; the potential impact of business, economic, political, legal, and regulatory developments upon our global operations, including tariffs and trade regulations; and the sufficiency of our cash and investments. Our actual results could differ materially from our historical results and those discussed in the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, those identified in Part II. Other Information, Item 1A. Risk Factors. 4 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Micron Technology, Inc. Consolidated Statements of Operations (In millions, except per share amounts) (Unaudited) Three months ended November 27, 2025 November 28, 2024 Revenue $ 13,643 $ 8,709 Cost of goods sold 5,997 5,361 Gross margin 7,646 3,348 Research and development 1,171 888 Selling, general, and administrative 337 288 Other operating (income) expense, net 2 ( 2 ) Operating income 6,136 2,174 Interest income 139 107 Interest expense ( 74 ) ( 118 ) Other non-operating income (expense), net ( 140 ) ( 11 ) 6,061 2,152 Income tax (provision) benefit ( 829 ) ( 283 ) Equity in net income (loss) of equity method investees 8 1 Net income $ 5,240 $ 1,870 Earnings per share Basic $ 4.66 $ 1.68 Diluted 4.60 1.67 Number of shares used in per share calculations Basic 1,125 1,111 Diluted 1,138 1,122 See accompanying notes to consolidated financial statements. 5 | 2026 Q1 10-Q Table of Contents Micron Technology, Inc. Consolidated Statements of Comprehensive Income (Loss) (In millions) (Unaudited) Three months ended November 27, 2025 November 28, 2024 Net income $ 5,240 $ 1,870 Other comprehensive income (loss), net of tax Gains (losses) on derivative instruments ( 94 ) ( 85 ) Unrealized gains (losses) on investments 3 ( 2 ) Other comprehensive income (loss) ( 91 ) ( 87 ) Total comprehensive income $ 5,149 $ 1,783 See accompanying notes to consolidated financial statements. 6 Table of Contents Micron Technology, Inc. Consolidated Balance Sheets (In millions, except par value amounts) (Unaudited) As of November 27, 2025 August 28, 2025 Assets Cash and cash equivalents $ 9,731 $ 9,642 Short-term investments 587 665 Receivables 10,184 9,265 Inventories 8,205 8,355 Other current assets 958 914 Total current assets 29,665 28,841 Long-term marketable investments 1,697 1,629 Property, plant, and equipment 48,477 46,590 Operating lease right-of-use assets 700 736 Int

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (All tabular amounts in millions, except per share amounts) (Unaudited) Note 1. Significant Accounting Policies For a discussion of our significant accounting policies, see Part II, Item 8. Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements, Note 1. Significant Accounting Policies of our Annual Report on Form 10-K for the year ended August 28, 2025. There have been no changes to our significant accounting policies since our Annual Report on Form 10-K for the year ended August 28, 2025. Basis of Presentation The accompanying consolidated financial statements include the accounts of Micron Technology, Inc. and our consolidated subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), consistent in all material respects with those applied in our Annual Report on Form 10-K for the year ended August 28, 2025. In the opinion of our management, the accompanying unaudited consolidated financial statements contain all necessary adjustments, consisting of a normal recurring nature, to fairly state the financial information set forth herein. Certain reclassifications have been made to prior-period amounts to conform to current-period presentation. Our fiscal year is the 52- or 53-week period ending on the Thursday closest to August 31. Fiscal year 2026 contains 53 weeks and fiscal year 2025 contains 52 weeks. Our fourth quarter of fiscal year 2026 contains 14 weeks. All period references are to our fiscal periods unless otherwise indicated. These interim financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended August 28, 2025. Note 2. Recently Issued Accounting Standards In December 2023, the FASB issued ASU 2023-09 (ASC Topic 740), Improvements to Income Tax Disclosures . This