Micron Technology (MU -0.52%) reported Q3 2025 earnings on June 25, 2025, with $9.3 billion in revenue, 39% gross margin (non-GAAP), and adjusted EPS of $1.91, all exceeding guidance.

Record-setting data center revenues, aggressive HBM memory scaling, and a $200 billion domestic investment plan featured prominently; management forecasts Q4 revenue (non-GAAP) at $10.7 billion with a 42% gross margin midpoint, underpinned by ongoing AI-driven demand.

HBM Outperformance Transforms Competitive Position and Product Mix

Data center revenue more than doubled year over year, driven by a nearly 50% sequential jump in HBM (high bandwidth memory -- critical for AI/accelerator platforms) revenue. Revenue from HBM is running at over a $6 billion annualized rate, and Micron became the #2 global data center SSD brand by market share during calendar Q1 2025, providing evidence of cross-platform execution. HBM’s die-trade ratio -- reflecting DRAM wafer demand per final product -- will surpass 3 for HBM4, increasing overall DRAM bit supply tightness industry-wide.

"I will tell you that in this year, you look at calendar year '25, HBM is growing from last year about $18 billion in revenue to approximately $35 billion in calendar year '25. We see in calendar year '26, if you look at HBM bit demand growth, it will significantly exceed the overall DRAM industry demand growth."
-- Sanjay Mehrotra, Chairman, President and CEO

This also stresses non-HBM bit supply for the broader industry.

Technology and Capacity Investment Accelerate U.S. Expansion and Node Leadership

Micron announced a $200 billion, multi-decade U.S. investment plan, including $150 billion in manufacturing and $50 billion in R&D over the next twenty-plus years, with two new Idaho fabs and advanced packaging capabilities, while continuing ramp on one-gamma (1γ) DRAM and G9 QLC NAND nodes. First customer DRAM wafer output at Idaho’s new ID1 fab is scheduled for H2 CY2027, with further site expansion and co-location benefits improving scale and time-to-market.

"Two weeks ago, with support from the Trump administration, Micron announced plans to invest approximately $200 billion in the U.S, which includes $150 billion in manufacturing and $50 billion in R&D over the next twenty-plus years. As part of this $200 billion investment plan, Micron plans to invest an additional $30 billion beyond previously announced plans, which includes building a second leading-edge memory fab in Boise, Idaho, expanding and modernizing our existing fab in Manassas, Virginia, serving the automotive, aerospace, defense, and industrial markets, and bringing advanced packaging capabilities to the U.S. to support our long-term HBM growth plans after we have established sufficient DRAM wafer scale in our U.S. operations."
-- Sanjay Mehrotra, Chairman, President and CEO

This multi-phase U.S. investment secures long-term domestic supply and supports advanced technology leadership for next-generation AI workloads.

Fiscal Execution and Inventory Positioning Lay Foundation for Multi-Year Growth

Free cash flow surpassed $1.9 billion -- highest in six years -- driven by Lean inventories (down $280 million quarter over quarter), tight bit supply, and operating income (non-GAAP) reaching $2.5 billion (26.8% margin). DRAM now accounts for 76% of total revenue (non-GAAP), as Bit shipments increased more than 20% sequentially (non-GAAP). amidst low single-digit DRAM price declines (non-GAAP), while strong sequential growth across each business unit demonstrates diversified demand (non-GAAP).

"Ending inventory fiscal Q3 was $8.7 billion or 139 days. Inventory was down $280 million sequentially, and inventory days were down nineteen days sequentially, driven by strong sequential bit shipment growth in both DRAM and NAND. With low inventories on hand and a constructive demand environment, we will continue to focus on improving pricing and further strengthening our product mix."
-- Mark Murphy, CFO

Looking Ahead

Management guides Q4 revenue (non-GAAP) to a record $10.7 billion (+15% sequentially), gross margin to 42% (±100 bps), operating expenses to ~$1.2 billion, and non-GAAP EPS for Q4 is expected to be $2.50 (±$0.15). Capex remains at approximately $14 billion, predominantly supporting HBM ramps, facility construction, and R&D. DRAM bit supply growth for non-HBM products is projected below industry demand, while tight inventories and measured node transitions position Micron to maintain pricing leverage through fiscal year-end.