MU

Micron Technology, Inc. stock research

Jun 1, 2023

FY2023 Q3

Micron Technology (MU) Gross Margin — Quarter Ended Jun 1, 2023

Revenue increased slightly from the prior quarter but fell dramatically year-over-year. Gross profit improved from a larger loss to a smaller loss, leading to a narrower negative gross margin sequentially, though it remained deeply negative compared to the positive margin a year ago.

Gross margin takeaway

Quarter ended Jun 1, 2023 · FY2023 Q3

Revenue increased slightly from the prior quarter but fell dramatically year-over-year. Gross profit improved from a larger loss to a smaller loss, leading to a narrower negative gross margin sequentially, though it remained deeply negative compared to the positive margin a year ago.

  • The reduction in cost of revenue outpaced the modest revenue increase, driving the sequential gross margin improvement.
  • Gross margin strengthened from the prior quarter but weakened severely compared to the same quarter last year.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

-17.8%

Gross profit

-$668.0M

Revenue

$3.8B

Cost of revenue

$4.4B

Quarter-over-quarter change

+14.9 pts

Year-over-year change

-64.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 1, 2022$4.1B$893.0M$3.2B21.9%
Mar 2, 2023$3.7B-$1.2B$4.9B-32.7%
Jun 1, 2023$3.8B-$668.0M$4.4B-17.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 2, 2023

+14.9 pts

Year-over-year change

FY2022 Q3

-64.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The reduction in cost of revenue outpaced the modest revenue increase, driving the sequential gross margin improvement.

Gross margin strengthened from the prior quarter but weakened severely compared to the same quarter last year.

Monitor the relationship between cost of revenue and revenue to assess sustainability of margin recovery.