MU

Micron Technology, Inc. stock research

Aug 29, 2024

FY2024 Q4

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

The period's revenue and gross profit both increased from the prior quarter and from the same quarter one year ago. Cost of revenue was unchanged from the prior quarter but rose compared to the year-ago quarter, resulting in a gross margin that improved both sequentially and year-over-year.

Gross margin takeaway

Quarter ended Aug 29, 2024 · FY2024 Q4

The period's revenue and gross profit both increased from the prior quarter and from the same quarter one year ago. Cost of revenue was unchanged from the prior quarter but rose compared to the year-ago quarter, resulting in a gross margin that improved both sequentially and year-over-year.

  • Gross profit grew more than proportionally relative to revenue when compared with both the prior quarter and the year-ago quarter, driving the gross margin higher. The relationship between cost of revenue and revenue was the most observable influence on margin changes.
  • Compared with the immediately preceding quarter, revenue and gross profit were higher while cost of revenue was stable, leading to an improved gross margin. Versus the same quarter one year ago, revenue and gross profit were substantially higher and gross margin turned positive from a negative position, with cost of revenue having increased.

Gross margin snapshot

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

Gross margin

35.3%

Gross profit

$2.7B

Revenue

$7.8B

Cost of revenue

$5.0B

Quarter-over-quarter change

+8.4 pts

Year-over-year change

+46.2 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Nov 30, 2023$4.7B-$35.0M$4.8B-0.7%
Feb 29, 2024$5.8B$1.1B$4.7B18.5%
May 30, 2024$6.8B$1.8B$5.0B26.9%
Aug 29, 2024$7.8B$2.7B$5.0B35.3%

Quarterly comparisons

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

Previous-quarter change

May 30, 2024

+8.4 pts

Year-over-year change

Aug 31, 2023

+46.2 pts

What the margin says

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

Gross profit grew more than proportionally relative to revenue when compared with both the prior quarter and the year-ago quarter, driving the gross margin higher. The relationship between cost of revenue and revenue was the most observable influence on margin changes.

Compared with the immediately preceding quarter, revenue and gross profit were higher while cost of revenue was stable, leading to an improved gross margin. Versus the same quarter one year ago, revenue and gross profit were substantially higher and gross margin turned positive from a negative position, with cost of revenue having increased.

Monitor the relationship between revenue growth and cost of revenue changes, as cost of revenue remained steady quarter-over-quarter while revenue increased, which was a key factor in margin expansion.