MU

Micron Technology, Inc. stock research

Feb 29, 2024

FY2024 Q2

Micron Technology (MU) Gross Margin — Quarter Ended Feb 29, 2024

Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter one year earlier. Cost of revenue decreased relative to both prior periods, resulting in a gross margin that improved from negative to positive.

Gross margin takeaway

Quarter ended Feb 29, 2024 · FY2024 Q2

Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter one year earlier. Cost of revenue decreased relative to both prior periods, resulting in a gross margin that improved from negative to positive.

  • The strongest observable margin driver is the reduction in cost of revenue relative to revenue, which directly supported the positive gross margin. This improvement is evident when comparing the current quarter to both the prior quarter and the year-ago quarter.
  • Compared to the immediately preceding quarter, revenue was higher, gross profit turned from negative to positive, cost of revenue was lower, and gross margin improved significantly. Compared to the same quarter one year earlier, revenue was higher, gross profit turned from negative to positive, cost of revenue was lower, and gross margin improved substantially.

Gross margin snapshot

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

Gross margin

18.5%

Gross profit

$1.1B

Revenue

$5.8B

Cost of revenue

$4.7B

Quarter-over-quarter change

+19.3 pts

Year-over-year change

+51.2 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Jun 1, 2023$3.8B-$668.0M$4.4B-17.8%
Aug 31, 2023$4.0B-$435.0M$4.4B-10.8%
Nov 30, 2023$4.7B-$35.0M$4.8B-0.7%
Feb 29, 2024$5.8B$1.1B$4.7B18.5%

Quarterly comparisons

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

Previous-quarter change

Nov 30, 2023

+19.3 pts

Year-over-year change

Mar 2, 2023

+51.2 pts

What the margin says

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

The strongest observable margin driver is the reduction in cost of revenue relative to revenue, which directly supported the positive gross margin. This improvement is evident when comparing the current quarter to both the prior quarter and the year-ago quarter.

Compared to the immediately preceding quarter, revenue was higher, gross profit turned from negative to positive, cost of revenue was lower, and gross margin improved significantly. Compared to the same quarter one year earlier, revenue was higher, gross profit turned from negative to positive, cost of revenue was lower, and gross margin improved substantially.

Monitor the trend in cost of revenue relative to revenue to assess whether the gross margin improvement can be sustained.