Micron Technology, Inc., a leading producer of memory and storage solutions, reported its third-quarter fiscal 2025 earnings, showcasing significant growth across multiple sectors. The company achieved revenue of $9.30 billion, an increase from $8.05 billion in the prior quarter and $6.81 billion year-over-year. Micron’s GAAP net income for the quarter was $1.89 billion, translating to $1.68 per diluted share, while non-GAAP net income reached $2.18 billion or $1.91 per diluted share.

The company experienced robust demand, particularly within the data center sector, with revenue from this segment more than doubling compared to the previous year. Micron noted nearly 50% sequential growth in its high-bandwidth memory (HBM) revenue. The gross margin for the quarter stood at $3.51 billion, or 37.7% of revenue, compared to $2.96 billion and 36.8% in the second quarter. Operating income was reported at $2.17 billion, constituting 23.3% of revenue.

Micron’s operating cash flow for the quarter was $4.61 billion, an increase from $3.94 billion in the previous quarter and $2.48 billion from the same quarter last year. The company maintained a strong cash position, concluding the quarter with $12.22 billion in cash and marketable investments.

Guidance for the fourth quarter indicates revenue expectations in the range of $10.7 billion, plus or minus $300 million, with an anticipated gross margin of approximately 41%, plus or minus 1%. Operating expenses are projected at $1.35 billion, plus or minus $20 million, while diluted earnings per share are expected to be around $2.29, plus or minus $0.15.

Regarding operational metrics, Micron’s investments in capital expenditures for the quarter totaled $2.66 billion, with adjusted free cash flow reaching $1.95 billion. The company reported a significant decrease in net debt, now at $3 billion, marking a considerable improvement from previous quarters. Total liquidity stood at $15.7 billion, inclusive of untapped credit facilities.

Looking ahead, Micron has revised upward its DRAM bit demand outlook for calendar year 2025 to a high-teens percentage increase from a mid-teens forecast. This adjustment stems from robust demand dynamics in various markets, particularly driven by AI advancements in data centers, as well as notable improvements in industrial and broad distribution markets.

Overall, Micron’s financial performance reflected stable growth conditions, overshadowing previous challenges while providing a solid outlook for continued advancements in memory technology.