Micron Technology, Inc. stock research
FY2025 Q1
Micron Technology (MU) Gross Margin — Quarter Ended Nov 28, 2024
Revenue, gross profit, cost of revenue, and gross margin all moved in the same direction. Gross profit rose substantially more than revenue, while cost of revenue increased by a smaller proportion, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Nov 28, 2024 · FY2025 Q1
Revenue, gross profit, cost of revenue, and gross margin all moved in the same direction. Gross profit rose substantially more than revenue, while cost of revenue increased by a smaller proportion, resulting in an improved gross margin.
- Revenue growth outpaced cost of revenue growth, and gross profit expanded at a faster rate than revenue. This indicates that the gross margin improvement was primarily volume-related rather than cost-driven.
- Compared to the immediately preceding quarter, revenue, gross profit, cost of revenue, and gross margin were all higher. Versus the same quarter one year earlier, the prior year had a negative gross profit and negative gross margin, while the current quarter shows positive gross profit and a positive gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.4%
Gross profit
$3.3B
Revenue
$8.7B
Cost of revenue
$5.4B
Quarter-over-quarter change
+3.1 pts
Year-over-year change
+39.2 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 |
|---|---|---|---|---|
| Feb 29, 2024 | $5.8B | $1.1B | $4.7B | 18.5% |
| May 30, 2024 | $6.8B | $1.8B | $5.0B | 26.9% |
| Aug 29, 2024 | $7.8B | $2.7B | $5.0B | 35.3% |
| Nov 28, 2024 | $8.7B | $3.3B | $5.4B | 38.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 29, 2024
+3.1 pts
Year-over-year change
Nov 30, 2023
+39.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue growth outpaced cost of revenue growth, and gross profit expanded at a faster rate than revenue. This indicates that the gross margin improvement was primarily volume-related rather than cost-driven.
Compared to the immediately preceding quarter, revenue, gross profit, cost of revenue, and gross margin were all higher. Versus the same quarter one year earlier, the prior year had a negative gross profit and negative gross margin, while the current quarter shows positive gross profit and a positive gross margin.
Monitor the trajectory of cost of revenue relative to revenue to see if the favorable relationship continues.