Micron Technology, Inc. stock research
FY2023 Q2
Micron Technology (MU) Gross Margin — Quarter Ended Mar 2, 2023
Revenue declined, and the cost of revenue exceeded revenue, producing a negative gross profit and a weakened gross margin. Compared with the prior quarter and the same quarter a year earlier, gross margin was lower.
Gross margin takeaway
Quarter ended Mar 2, 2023 · FY2023 Q2
Revenue declined, and the cost of revenue exceeded revenue, producing a negative gross profit and a weakened gross margin. Compared with the prior quarter and the same quarter a year earlier, gross margin was lower.
- The strongest observable driver is the sharp decline in revenue relative to a cost of revenue that did not contract as much, flipping gross profit from positive to negative. The cost of revenue as a share of revenue rose substantially.
- Compared with the immediately preceding quarter, revenue was lower and cost of revenue was higher, yielding a negative gross profit versus a positive one. Compared with the same quarter one year earlier, both revenue and gross profit were lower, while cost of revenue was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-32.7%
Gross profit
-$1.2B
Revenue
$3.7B
Cost of revenue
$4.9B
Quarter-over-quarter change
-54.5 pts
Year-over-year change
-79.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 1, 2022 | $4.1B | $893.0M | $3.2B | 21.9% |
| Mar 2, 2023 | $3.7B | -$1.2B | $4.9B | -32.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 1, 2022
-54.5 pts
Year-over-year change
FY2022 Q2
-79.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the sharp decline in revenue relative to a cost of revenue that did not contract as much, flipping gross profit from positive to negative. The cost of revenue as a share of revenue rose substantially.
Compared with the immediately preceding quarter, revenue was lower and cost of revenue was higher, yielding a negative gross profit versus a positive one. Compared with the same quarter one year earlier, both revenue and gross profit were lower, while cost of revenue was higher.
Monitor whether cost of revenue can be reduced in line with the lower revenue level in the coming quarters.