MU

Micron Technology, Inc. stock research

May 29, 2025

FY2025 Q3

Micron Technology (MU) Gross Margin — Quarter Ended May 29, 2025

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved relative to both periods, reflecting a stronger relationship between revenue and cost of revenue.

Gross margin takeaway

Quarter ended May 29, 2025 · FY2025 Q3

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved relative to both periods, reflecting a stronger relationship between revenue and cost of revenue.

  • The strongest observable margin driver is the increase in gross profit relative to revenue, as gross margin rose from the prior quarter and the year-ago quarter. This indicates that revenue grew faster than cost of revenue.
  • Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher. Compared to the same quarter one year earlier, all three metrics were also higher, with gross margin showing a notable improvement.

Gross margin snapshot

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

Gross margin

37.7%

Gross profit

$3.5B

Revenue

$9.3B

Cost of revenue

$5.8B

Quarter-over-quarter change

+0.9 pts

Year-over-year change

+10.8 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Aug 29, 2024$7.8B$2.7B$5.0B35.3%
Nov 28, 2024$8.7B$3.3B$5.4B38.4%
Feb 27, 2025$8.1B$3.0B$5.1B36.8%
May 29, 2025$9.3B$3.5B$5.8B37.7%

Quarterly comparisons

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

Previous-quarter change

Feb 27, 2025

+0.9 pts

Year-over-year change

May 30, 2024

+10.8 pts

What the margin says

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

The strongest observable margin driver is the increase in gross profit relative to revenue, as gross margin rose from the prior quarter and the year-ago quarter. This indicates that revenue grew faster than cost of revenue.

Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher. Compared to the same quarter one year earlier, all three metrics were also higher, with gross margin showing a notable improvement.

Monitor the trend in cost of revenue relative to revenue, as its increase could pressure gross margin if revenue growth slows.