Micron's Record Revenue and Margin Expansion in 2025
Micron achieved record revenue of $37.4 billion in fiscal 2025, a 49% increase year over year, driven by AI-driven demand and pricing strength.
Gross margins expanded by 17 percentage points to 41%, supported by high-value data center products and industry-wide DRAM pricing strength.
The company’s revenue growth was supported by ramping high-value products like HBM, high-capacity DIMMs, and LP server DRAM, which reached over $10 billion, a fivefold increase.
Micron's data center SSD business reached record revenue and market share, highlighting a strategic focus on high-margin data center solutions.
DRAM revenue for fiscal 2025 was a record $28.6 billion, up 62% year over year; fiscal Q4 DRAM revenue was $9 billion, up 69% year over year and 27% sequentially.
EPS for fiscal 2025 reached $8.29, a 538% increase year over year; fiscal Q4 non-GAAP EPS was $3.03, up 157% year over year and 59% sequentially.
Fiscal 2025 revenue grew nearly 50% to a record $37.4 billion, with fiscal Q4 revenue at $11.3 billion, up 46% year over year and 22% sequentially.
Free cash flow for fiscal 2025 was $3.7 billion, representing 10% of revenue; fiscal Q4 free cash flow was $803 million.
Gross margins expanded by 17 percentage points to 41% for fiscal 2025, with fiscal Q4 gross margin at 45.7%, up 670 basis points sequentially.
NAND revenue for fiscal 2025 was a record $8.5 billion, up 18% year over year; fiscal Q4 NAND revenue was $2.3 billion, down 5% year over year but up 5% sequentially.
Operating expenses in fiscal Q4 were $1.2 billion, up $81 million sequentially, driven primarily by higher R&D.
Operating income in fiscal Q4 was $4 billion, with an operating margin of 35%, up 820 basis points sequentially and 12 percentage points year over year.
Photronics' US Expansion and Advanced Capabilities Investment Strategy
Photronics is expanding its cleaning facility in Texas to support increased demand for U.S. midrange nodes, reflecting a strategic shift towards geographic diversification.
The company is elevating its leading-edge production capabilities in Idaho with a new multi-beam mask writer to serve high-end semiconductor markets.
These US projects align with broader industry trends of reshoring semiconductor manufacturing to the United States, positioning Photronics to benefit from this reshoring movement.
Management emphasized leveraging a strong balance sheet to reinvest in capacity and technology, aiming to drive future revenue and earnings growth.
The US expansion and advanced capability investments are part of a multi-year strategic plan, with CapEx expected to remain elevated for about three years due to end-of-life tool replacements and new technology rollouts.
Dafinchi