Slides
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Financial results FQ4 2025
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September 23, 2025 2 Safe harbor statement During the course of this meeting, we may make projections or other forward-looking statements regarding market demand and supply, market and pricing trends and drivers, the impact of technologies such as AI, the impact of our internal reorganization, cost reductions, our manufacturing projects and related investments, expected product volume production, our market position, expected product announcements, capabilities of our future products and technologies, future events, such as the end of life of some products, and future financial and operating performance including financial projections of the company and the industry. We wish to caution you that such statements are predictions, and that actual events or results may differ materially. We refer you to the documents the company files from time to time with the Securities and Exchange Commission, including the company’s Form 10-K, Forms 10-Q and other reports and filings. These documents contain and identify important factors that could cause the actual results for the company to differ materially from those contained in o ur projections or forward-looking statements. These certain factors can be found at investors.micron.com/risk -factor. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We are under no duty to update any of the forward-looking statements to conform these statements except as required by applicable law. This presentation includes non-GAAP financial measures. Non-GAAP financial measures represent GAAP measures, excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings, adjusted free cash flow and business outlook. Further information regarding Micron's use of non - GAAP measures and reconciliations between GAAP and non-GAAP measures are included in the Appendix.
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September 23, 2025 3 Sanjay Mehrotra Chairman, President and Chief Executive Officer 3
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September 23, 2025 4 Overview (1 of 2) • Micron had an outstanding finish to fiscal 2025, delivering fiscal Q4 revenue, gross margin and EPS all above the high end of our updated guidance ranges. • We achieved record revenue in Q4, driven by pricing execution and strong performance across end markets. • In our March 2024 earnings call, we said that we expect Micron to be one of the biggest beneficiaries of AI in the semiconductor industry, and that we expect to deliver record revenue and significantly improved profitability in fiscal 2025. • I’m pleased to report that in fiscal 2025, Micron’s revenue grew nearly 50% to a record $37.4 billion, and gross margins expanded by 17 percentage points to 41%. This performance was supported by the ramp of our high value data center products and our broad-based DRAM pricing strength across end markets. • The combined revenue from HBM, high-capacity DIMMs, and LP server DRAM reached $10 billion, more than a five-fold increase compared to the prior fiscal year. Our data center SSD business reached record revenue and market share in fiscal 2025. September 23, 2025
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September 23, 2025 5 Overview (2 of 2) • As we enter fiscal 2026, Micron is positioned better than ever. • Our leadership in advanced technologies — including HBM, 1γ (1- gamma) DRAM and G9 NAND — enables a differentiated product portfolio that drives strong ROI. • AI-driven demand is accelerating, and industry DRAM supply is tight. • Our HBM performance has been strong, and robust demand, tight DRAM supply, and disciplined execution has significantly strengthened the profitability of the rest of our DRAM portfolio. • In NAND, our higher mix to data center and improving industry conditions are contributing to profitability. • Our fiscal Q1 guidance reflects new records for revenue and EPS. September 23, 2025
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September 23, 2025 6 AI use within Micron • In addition to being a demand driver, AI is also a powerful productivity driver for Micron, contributing to our strong competitive position and financial performance. • We are using AI throughout the company across product design, technology development, manufacturing, and other functional groups. • We have seen strong adoption and as much as a 30-40% productivity uplift in select GenAI use cases, such as code generation. • In design simulation, AI is accelerating our silicon- to-systems design cycle through advanced modeling and reduced iterations. • In manufacturing, we have driven a 5X increase in wafer images analyzed in the past year and doubled the amount of useful data and telemetry collected and analyzed from our fab tools, all of which improve our yield performance. • These AI capabilities enable us to achieve superior product specifications, quality, and time-to-market at scale. 6September 23, 2025
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September 23, 2025 7 Technology and operations • Turning to technology and operations, we are proud to announce that our 1γ DRAM node reached mature yields in record time, 50% faster than in the prior generation. • We are the first in the industry to ship 1γ DRAM and will leverage 1γ across our entire DRAM portfolio to maximize the benefits of this leadership technology. • We achieved first revenue from a major hyperscale customer on our 1γ products for server DRAM in the quarter. • Our G9 NAND production ramp has been progressing well while scaling at a pace aligned with market demand. • We have ramped our G9 NAND node for both TLC and QLC NAND and have qualified our G9 QLC NAND for enterprise storage. 7
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September 23, 2025 8 Manufacturing update (1 of 2) • In fiscal Q4, we received a CHIPS grant disbursement following the completion of a key construction milestone for our new high-volume manufacturing fab in Idaho (ID1), with the first wafer output expected to begin in the second half of calendar 2027. • We began design work for our second Idaho manufacturing fab (ID2), which will provide additional capacity beyond 2028. • In New York, we have completed initial phases of our environmental impact study and continue to work with state and federal authorities towards starting ground preparation. September 23, 2025
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September 23, 2025 9 Manufacturing update (2 of 2) • In fiscal Q4 we installed the first EUV tool for our Japan fab to enable 1γ capability, which will complement our existing 1γ supply from our fabs in Taiwan. • The time from receiving this tool to completing installation was a record for all EUV tools globally, demonstrating Micron’s expertise with this equipment. • We plan to continue to invest in our Japan production capability to meet requirements of the advanced memory technologies of the future. • Our continued HBM assembly and test investments position us well to meet growing HBM capacity requirements in calendar 2026. • We are making good progress on our Singapore HBM assembly and test facility construction, which is on track to contribute to our HBM supply capability beginning in calendar 2027. September 23, 2025
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September 23, 2025 10 Data center server demand • In data center, we now expect calendar 2025 total server units to grow approximately ten percent, up from our prior expectations of mid-single digits percentage growth. • The calendar 2025 traditional server growth outlook has strengthened significantly from flat to growth in the mid-single digit range. • We believe this change in outlook is in part related to the growth of AI agents and the traditional server workloads agents initiate, as they execute tasks on behalf of users. • Continued growth in traditional server applications in enterprises is also contributing to additional demand growth. • In addition to traditional servers, AI server growth continues to be very robust. • This growth in both traditional and AI servers is driving strong demand for our DRAM products. 10
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September 23, 2025 11 Data center HBM financial contribution • Data centers require some of our industry’s most complex and high-value products and meeting this demand has presented several opportunities to enhance our product mix and profitability. • In fiscal 2025, Micron’s data center business reached a record 56% of total company revenue, with gross margins of 52%. • Our HBM business has posted many quarters of strong growth. • In fiscal Q4, our HBM revenue grew to nearly $2 billion, implying an annualized run rate of nearly $8 billion, driven by the ramp of our industry- leading HBM3E products. • We are pleased to note that our HBM share is on track to grow again, and be in line with our overall DRAM share in this calendar Q3, delivering on our target that we have discussed for several quarters now. 11
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September 23, 2025 12 Data center HBM4 • Micron’s HBM4 12H (12-high) remains on track to support customer platform ramps even as the performance requirements for HBM4 bandwidth and pin speeds have increased. • We have recently shipped customer samples of our HBM4 with industry-leading bandwidth exceeding 2.8 TBps and pin speeds over 11Gbps. • We believe Micron’s HBM4 outperforms all competing HBM4 products, delivering industry-leading performance as well as best-in-class power efficiency. • Our proven 1β (1-beta) DRAM, innovative and power-efficient HBM4 design, in- house advanced CMOS base die and advanced packaging innovations are key differentiators enabling this best-in-class product. 12
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September 23, 2025 13 Data center HBM4E • For HBM4E, Micron will offer standard products, as well as the option for customization of the base logic die. • We are partnering with TSMC for manufacturing the HBM4E base logic die for both standard and customized products. • Customization requires close collaboration with customers and we expect HBM4E with customized base logic die to deliver higher gross margins than standard HBM4E. • Our HBM customer base has expanded and now includes six customers. • We have pricing agreements with almost all customers for a vast majority of our HBM3E supply in calendar 2026. • We are in active discussions with customers on the specifications and volumes for HBM4, and we expect to conclude agreements to sell out the remainder of our total HBM calendar 2026 supply in the coming months. 13
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September 23, 2025 14 Data center LPDDR5 and GDDR7 • Micron’s LPDDR5 for server had over 50% sequential growth in the quarter and reached record revenue. • In close collaboration with Nvidia, Micron has pioneered the adoption of LPDRAM for servers, and since Nvidia's launch of LPDRAM in their GB-product family, Micron has been the sole supplier of LPDRAM in the data center. • In addition to our leadership in HBM and LP5, Micron is also well positioned with our GDDR7 products, which are designed to deliver ultra-fast performance with pin speeds exceeding 40 Gbps, along with best-in-class power efficiency to address needs of certain future AI systems. 14
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September 23, 2025 15 Data center NAND SSDs • In data center NAND, AI inference use cases such as KV cache tiering and vector database search and indexing, are driving demand for performance storage, while AI server growth is driving demand for high-capacity SSDs for capacity storage. • Micron is gaining share in these markets with our customer focus, technology leadership, vertical integration and execution. • We strengthened our portfolio with the industry’s first G9 NAND data center products, including first-to-market PCIe Gen6 SSDs. • Near term, we see continued growth in the data center storage market, with HDD supply shortages expected to improve NAND demand and drive a healthier supply-demand environment. 15
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September 23, 2025 16 PC • End-of-life of Windows 10 and greater adoption of AI-enabled PCs are driving an improved PC demand outlook. • We now expect PC unit shipments to grow at a mid single-digit percentage level in calendar 2025, versus our low single-digit percentage growth expectations previously. • During the quarter, we achieved our first OEM customer qualification of our 16Gb, 1γ-based D5 and commenced volume shipments. • In NAND, we successfully qualified our first G9 NAND SSDs in both performance and mainstream categories with OEM customers. • Our strong SSD portfolio enabled us to achieve record client SSD revenue in the quarter and in fiscal year 2025. 16
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September 23, 2025 17 Mobile • Smartphone unit shipment expectations remain unchanged at low-single digit percentage range in calendar 2025. • An increasing mix of AI-ready smartphones continues to be a key catalyst for DRAM content growth in mobile devices. • Notably, one third of the flagship smartphones shipped in calendar Q2 contained 12GB or more, and given recent product launches from Apple, Samsung and other smartphone OEMs, we expect this mix to increase over the coming quarters. • In fiscal Q4, Micron ceased future mobile-managed NAND product development to focus our resources and investments on higher ROI opportunities in our portfolio. • We will continue to support existing mobile-managed NAND products. Micron remains committed to serving the mobile DRAM market with our industry-leading portfolio. • In fiscal Q4, we achieved OEM qualification of our first 10.7 Gbps 1β second-generation LP5X products, at 16GB and 24GB capacities. 17 17
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September 23, 2025 18 Automotive and embedded • In automotive, trends such as ADAS and AI-enhanced in-cabin experiences require significantly higher memory and storage content, making it a higher growth part of the industry. • In embedded, we expect physical AI such as drones, advanced robots and AR/VR to become a more important driver of demand over time. • Automotive and industrial demand strengthened throughout the quarter, exceeding our initial forecast. • We are seeing improved profitability in this business with stronger pricing and an increased mix of advanced technology nodes with greater adoption of D5 and LP5 products. • We continue to see supply constraints in D4 and LP4. In June, Micron announced investments in our Virginia facility, in an effort to support our long-life cycle customers’ demand for D4 and LP4. 18
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September 23, 2025 19 Market outlook (1 of 2) • Customer inventory levels are healthy overall across end markets. • We expect calendar 2025 industry DRAM bit demand growth to be in the high- teens percentage range, somewhat higher than our previous outlook. • We expect calendar 2025 industry NAND bit demand growth to also be higher than our previous outlook, now in the low-to mid-teens percentage range. • We expect Micron’s calendar 2025 bit supply growth to be below industry bit demand growth for non-HBM DRAM and for NAND. • Robust data center demand, including the uptick in server unit growth, has contributed to a tight industry DRAM environment and strengthened NAND market conditions. Additionally, broadening of demand across end markets has also constrained DRAM supply. • On the supply side, we expect low supplier inventories, constrained node migration as industry supports extended D4 and LP4 end-of-life, longer lead times and higher costs globally for new wafer capacity, all to limit the pace of supply growth for DRAM in 2026. September 23, 2025
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September 23, 2025 20 Market outlook (2 of 2) • In calendar 2026, we anticipate further DRAM supply tightness in the industry and continued strengthening in NAND market conditions. • Over the medium term, we anticipate industry bit demand growth of mid-teens CAGR for both DRAM and NAND. • Micron invested $13.8 billion in capex in fiscal 2025. As we continue to make 1γ DRAM and HBM-related investments, we expect fiscal 2026 capex to be higher than fiscal 2025 levels. • DRAM front-end equipment and fab construction will drive higher capital spending in fiscal 2026. • Our continued technology node migration to 1γ will provide the majority of our supply growth for DRAM in calendar 2026. • As we transition more products to 1γ, our 1β capacity will support HBM growth in 2026. September 23, 2025
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September 23, 2025 21 Mark Murphy Chief Financial Officer 21
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September 23, 2025 22 FQ4-25 revenue $11.3B Revenue up 22% Q/Q and up 46% Y/Y Revenue up 49% Y/Y FY-25 revenue $37.4B
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September 23, 2025 2323 Performance by technology DRAM FQ4-25 • $9.0 billion, representing 79% of total revenue in FQ4-25 • Revenue increased 27% Q/Q • Bit shipments increased in the low-teens percentage range Q/Q • ASPs increased in the low-double-digit percentage range Q/Q NAND FQ4-25 • $2.3 billion, representing 20% of total revenue in FQ4-25 • Revenue increased 5% Q/Q • Bit shipments declined in the mid-single digit percentage range Q/Q • ASPs increased in the high-single digit percentage range Q/Q DRAM FY-25 • $28.6 billion, representing 76% of total revenue in FY-25 • Revenue increased 62% Y/Y NAND FY-25 • $8.5 billion, representing 23% of total revenue in FY-25 • Revenue increased 18% Y/Y 23September 23, 2025
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24September 23, 2025 Amounts in millions FQ4-25 FQ3-25 FQ4-24 Cloud Memory (CMBU) Revenue $4,543 $3,386 $1,449 Gross margin 59 % 58 % 49 % Operating margin 48 % 46 % 33 % Core Data (CDBU) Revenue $1,577 $1,530 $2,048 Gross margin 41 % 38 % 41 % Operating margin 25 % 20 % 27 % Mobile and Client (MCBU) Revenue $3,760 $3,255 $3,019 Gross margin 36 % 24 % 32 % Operating margin 29 % 15 % 20 % Auto and Embedded (AEBU) Revenue $1,434 $1,127 $1,230 Gross margin 31 % 26 % 24 % Operating margin 20 % 11 % 11 % Quarterly business unit financial results
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September 23, 2025 25 Financial performance by business unit (1 of 2) • Cloud Memory Business Unit revenue was $4.5 billion and represented 40% of total company revenue. • CMBU revenues were up 34% sequentially, driven by robust bit shipment growth. • HBM revenues reached a new quarterly record. • CMBU gross margins were 59%, higher by 120 basis points sequentially, supported by cost reductions. • Core Data Center Business Unit revenue was $1.6 billion and represented 14% of total company revenue. • CDBU revenues were up 3% sequentially. CDBU gross margins were 41%, up 400 basis points sequentially, driven by higher pricing and favorable mix. September 23, 2025
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September 23, 2025 26 Financial performance by business unit (2 of 2) • Mobile Client Business Unit revenue was $3.8 billion and represented 33% of total company revenue. • MCBU revenues were up 16% sequentially, driven by higher DRAM shipments and improved pricing. • MCBU gross margins were 36%, up 12 percentage points sequentially, driven by higher pricing and favorable mix. • Automotive and Embedded Business Unit revenue was $1.4 billion and represented 13% of total company revenue. • AEBU revenues were up 27% sequentially, driven by higher bit shipments. • AEBU gross margins were 31%, up 540 basis points sequentially, driven by higher pricing. September 23, 2025
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September 23, 2025 2727 FQ4-25 Non-GAAP operating results See non-GAAP reconciliations in Appendix Revenue: $11.32 billion Gross margin: 45.7% Operating expenses: $1.21 billion Operating income: $3.96 billion Net income: $3.47 billion Diluted earnings per share: $3.03 Cash from operations (GAAP): $5.73 billion 27
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September 23, 2025 2828 Cash flow from operations FQ4-25: $5.7 billion (51% of revenue) FY-25: $17.5 billion (47% of revenue) Net Capex1 FQ4-25: $4.9 billion FY-25: $13.8 billion Adjusted free cash flow* FQ4-25: $803 million FY-25: $3.7 billion Buybacks FQ4-25: None FY-25: None Dividends Dividend of $0.115 per share will be paid on October 21st Liquidity2 $15.4 billion in liquidity at end of FQ4-25 Cash flow and capital allocation 1Capex net of proceeds from government incentives and proceeds from sales of property, plant, and equipment. 2Cash, short-term and long-term marketable investments, restricted cash, and undrawn revolver capacity. *Adjusted free cash flow is a non-GAAP measure defined as net cash provided by operating activities less investments in capital expenditures net of proceeds from government incentives and proceeds from sales of property, plant, and equipment. See non-GAAP reconciliations in Appendix. From FY-22 to FY-25 • $3.2 billion toward repurchasing 47 million shares • $2.0 billion towards dividends paid • $5.2 billion returned to shareholders from share repurchases and dividends
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September 23, 2025 29 Outlook • We expect price, cost and mix to all contribute to strengthening gross margins in Q1. • Operating expenses for fiscal Q1 are projected to be approximately $1.34 billion, with the sequential increase driven by R&D related to data center product innovation and development. • Micron’s fiscal 2026 will be a 53-week fiscal year compared to fiscal 2025 which was a 52-week fiscal year. • As a result, fiscal Q4 2026 opex will reflect the effect of an additional work week in the quarter. • We expect a fiscal Q1 and fiscal year 2026 tax rate of around 16.5%. • We expect our fiscal Q1 capital spending to be approximately $4.5 billion. • While quarterly spend may fluctuate, this level serves as a reasonable quarterly baseline for the planned capital spend in fiscal 2026. • We will continue to exercise supply discipline, as we pursue our growth opportunities. • We expect free cash flow to strengthen in fiscal Q1, and we project significantly higher annual free cash flow year over year in fiscal 2026. • Any impacts that may occur due to potential new tariffs are not included in our guidance. 29September 23, 2025
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September 23, 2025 3030 Revenue $12.50 billion ± $300 million Gross margin 51.5% ± 1.0% Operating expenses $1.34 billion ± $20 million Diluted earnings per share* $3.75 ± $0.15 *Based on ~1.15 billion diluted shares. See non-GAAP reconciliations in Appendix. FQ1-26 guidance Non-GAAP September 23, 2025
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September 23, 2025 31 Appendix
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September 23, 2025 3232 Financial summary Non-GAAP See non-GAAP reconciliations. Amounts in millions, except per share FQ4-25 % of Revenue FQ3-25 % of Revenue FQ4-24 % of Revenue Revenue $11,315 100% $9,301 100% $7,750 100% Gross margin 5,169 46% 3,623 39% 2,826 36% Operating income 3,955 35% 2,490 27% 1,745 23% Income tax (provision) benefit (471) (306) (387) Net income 3,469 31% 2,181 23% 1,342 17% Diluted earnings per share 3.03 1.91 1.18 Cash provided by operating activities (GAAP) 5,730 4,609 3,405 Cash, marketable investments, and restricted cash (GAAP) 11,940 12,219 9,163
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September 23, 2025 3333 Financial summary Non-GAAP Amounts in millions, except per share FY-25 % of Revenue FY-24 % of Revenue Revenue $37,378 100% $25,111 100% Gross margin 15,286 41% 5,943 24% Operating income 10,846 29% 1,935 8% Income tax (provision) benefit (1,324) (379) Net income 9,470 25% 1,472 6% Diluted earnings per share 8.29 1.30 Cash provided by operating activities (GAAP) 17,525 8,507 See non-GAAP reconciliations.
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September 23, 2025 3434 Non-GAAP financial data and guidance % of Revenue FQ4-25 DRAM 79% NAND 20% See non-GAAP reconciliations. (amounts in millions, except per share) FQ4-25 non-GAAP (amounts in millions, except per share) FQ1-26 non-GAAP Guidance Revenue $11,315 $12.50 billion ± $300 million Gross margin 46% 51.5% ± 1.0% Operating expenses $1,214 $1.34 billion ± $20 million Diluted earnings per share $3.03 $3.75 ± $0.15 FQ4-25 non-GAAP (amounts in millions) FQ1-26 non-GAAP Estimates Diluted shares 1,145 ~1.15 billion Income tax (provision) benefit ($471) Around 16.5% Cash from operations (GAAP) $5,730 — Investments in capex, net (capital cash flow) $4,927 Approximately $4.5 billion % Sales Volume Change FQ4-25 Q/Q DRAM Increased in the low-teens percentage range NAND Declined in the mid-single- digit percentage range % ASP Change FQ4-25 Q/Q DRAM Increased in the low-double- digit percentage range NAND Increased in the high-single digit percentage range
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September 23, 2025 3535 Amounts in millions FQ4-25 % of Revenue FQ3-25 % of Revenue FQ4-24 % of Revenue DRAM $8,984 79% $7,071 76% $5,326 69% NAND 2,252 20% 2,155 23% 2,365 31% Other (primarily NOR) 79 1% 75 1% 59 1% Total $11,315 100% $9,301 100% $7,750 100% Percentages of total revenue may not total 100% due to rounding. Revenue by technology
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September 23, 2025 3636 Amounts in millions FY-25 % of Revenue FY-24 % of Revenue DRAM $28,578 76% $17,603 70% NAND 8,503 23% 7,227 29% Other (primarily NOR) 297 1% 281 1% Total $37,378 100% $25,111 100% Percentages of total revenue may not total 100% due to rounding. Revenue by technology
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September 23, 2025 3737 Amounts in millions FQ4-25 FQ3-25 Q/Q % Change FQ4-24 Y/Y % Change FY-25 FY-24 Y/Y % Change DRAM $8,984 $7,071 27% $5,326 69% $28,578 $17,603 62% NAND 2,252 2,155 5% 2,365 (5%) 8,503 7,227 18% Other (primarily NOR) 79 75 5% 59 34% 297 281 6% Total $11,315 $9,301 22% $7,750 46% $37,378 $25,111 49% Revenue by technology 37September 23, 2025
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September 23, 2025 3838 Amounts in millions FQ4-25 FQ3-25 Q/Q % Change FQ4-24 Y/Y % Change FY-25 FY-24 Y/Y % Change Cloud Memory (CMBU) $4,543 $3,386 34% $1,449 214% $13,524 $3,792 257% Core Data (CDBU) 1,577 1,530 3% 2,048 (23%) 7,229 4,984 45% Mobile and Client (MCBU) 3,760 3,255 16% 3,019 25% 11,859 11,667 2% Auto and Embedded (AEBU) 1,434 1,127 27% 1,230 17% 4,753 4,631 3% Revenue by business unit 38September 23, 2025
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September 23, 2025 39 Non-GAAP reconciliations
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September 23, 2025 4040 Consolidated results Non-GAAP reconciliations Amounts in millions FQ4-25 FQ3-25 FQ4-24 GAAP gross margin $5,054 $3,508 $2,737 Stock-based compensation 115 115 85 Other — — 4 Non-GAAP gross margin $5,169 $3,623 $2,826 GAAP operating expenses $1,400 $1,339 $1,215 Stock-based compensation (147) (148) (128) Restructure and asset impairments (38) (1) (1) Patent license charges — (57) — Other (1) — (5) Non-GAAP operating expenses $1,214 $1,133 $1,081 GAAP operating income $3,654 $2,169 $1,522 Stock-based compensation 262 263 213 Restructure and asset impairments 38 1 1 Patent license charges — 57 — Other 1 — 9 Non-GAAP operating income $3,955 $2,490 $1,745
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September 23, 2025 4141 Amounts in millions FQ4-25 FQ3-25 FQ4-24 GAAP cost of goods sold $6,261 $5,793 $5,013 Stock-based compensation (115) (115) (85) Other — — (4) Non-GAAP cost of goods sold $6,146 $5,678 $4,924 GAAP research and development $1,047 $965 $903 Stock-based compensation (93) (89) (74) Other (1) — — Non-GAAP research and development $953 $876 $829 GAAP selling, general, and administrative $314 $318 $295 Stock-based compensation (54) (59) (54) Non-GAAP selling, general, and administrative $260 $259 $241 Consolidated results Non-GAAP reconciliations
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September 23, 2025 4242 Amounts in millions FQ4-25 FQ3-25 FQ4-24 GAAP net income $3,201 $1,885 $887 Stock-based compensation 262 263 213 Restructure and asset impairments 38 1 1 Loss on debt prepayments 9 46 — Patent license charges — 57 — Other 1 — 5 Estimated tax effects of above and other tax adjustments (42) (71) 236 Non-GAAP net income $3,469 $2,181 $1,342 GAAP income tax (provision) benefit ($429) ($235) ($623) Estimated tax effects of non-GAAP adjustments and other tax adjustments (42) (71) 236 Non-GAAP income tax (provision) benefit ($471) ($306) ($387) Consolidated results Non-GAAP reconciliations
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September 23, 2025 4343 Amounts in millions FQ4-25 FQ3-25 FQ4-24 GAAP net income $3,201 $1,885 $887 Interest (income) expense, net (22) (12) 5 Income tax provision (benefit) 429 235 623 Depreciation expense and amortization of intangible assets 2,149 2,094 1,986 Non-GAAP adjustments Stock-based compensation 262 263 213 Restructure and asset impairments 38 1 1 Loss on debt prepayments 9 46 — Patent license charges — 57 — Other — — 5 Adjusted EBITDA $6,066 $4,569 $3,720 Consolidated results Non-GAAP reconciliations
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September 23, 2025 4444 Amounts in millions, except per share FQ4-25 FQ3-25 FQ4-24 GAAP shares used in diluted EPS calculations 1,131 1,125 1,125 Adjustment for stock-based compensation 14 19 12 Non-GAAP shares used in diluted EPS calculations 1,145 1,144 1,137 GAAP diluted earnings per share $2.83 $1.68 $0.79 Effects of non-GAAP adjustments 0.20 0.23 0.39 Non-GAAP diluted earnings per share $3.03 $1.91 $1.18 Net cash provided by operating activities $5,730 $4,609 $3,405 Expenditures for property, plant, and equipment (5,658) (2,938) (3,120) Payments on equipment purchase contracts — — (22) Proceeds from sales of property, plant, and equipment 20 12 12 Proceeds from government incentives 711 266 48 Investments in capital expenditures, net (4,927) (2,660) (3,082) Adjusted free cash flow $803 $1,949 $323 Consolidated results Non-GAAP reconciliations
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September 23, 2025 4545 Amounts in millions FY-25 FY-24 GAAP gross margin $14,873 $5,613 Stock-based compensation 409 312 Other 4 18 Non-GAAP gross margin $15,286 $5,943 GAAP operating expenses $5,103 $4,309 Stock-based compensation (566) (509) Restructure and asset impairments (39) (1) Patent cross-license agreement gain — 200 Patent license charges (57) — Other (1) 9 Non-GAAP operating expenses $4,440 $4,008 GAAP operating income $9,770 $1,304 Stock-based compensation 975 821 Restructure and asset impairments 39 1 Patent cross-license agreement gain — (200) Patent license charges 57 — Other 5 9 Non-GAAP operating income $10,846 $1,935 Consolidated results Non-GAAP reconciliations
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September 23, 2025 4646 Amounts in millions FY-25 FY-24 GAAP cost of goods sold $22,505 $19,498 Stock-based compensation (409) (312) Other (4) (18) Non-GAAP cost of goods sold $22,092 $19,168 GAAP research and development $3,798 $3,430 Stock-based compensation (347) (296) Other (1) 14 Non-GAAP research and development $3,450 $3,148 GAAP selling, general, and administrative $1,205 $1,129 Stock-based compensation (219) (213) Non-GAAP selling, general, and administrative $986 $916 Consolidated results Non-GAAP reconciliations
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September 23, 2025 4747 Amounts in millions FY-25 FY-24 GAAP net income $8,539 $778 Stock-based compensation 975 821 Restructure and asset impairments 39 1 Patent cross-license agreement gain — (200) Loss on debt prepayments 59 1 Patent license charges 57 — Other 1 (1) Estimated tax effects of above and other tax adjustments (200) 72 Non-GAAP net income $9,470 $1,472 GAAP income tax (provision) benefit ($1,124) ($451) Estimated tax effects of non-GAAP adjustments and other tax adjustments (200) 72 Non-GAAP income tax (provision) benefit ($1,324) ($379) Consolidated results Non-GAAP reconciliations
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September 23, 2025 4848 Amounts in millions FY-25 FY-24 GAAP net income $8,539 $778 Interest (income) expense, net (19) 33 Income tax provision (benefit) 1,124 451 Depreciation expense and amortization of intangible assets 8,352 7,780 Non-GAAP adjustments Stock-based compensation 975 821 Restructure and asset impairments 39 1 Patent cross-license agreement gain — (200) Patent license charges 57 — Loss on debt prepayments 59 1 Other — (9) Adjusted EBITDA $19,126 $9,656 Consolidated results Non-GAAP reconciliations
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September 23, 2025 4949 Amounts in millions, except per share FY-25 FY-24 GAAP shares used in diluted EPS calculations 1,125 1,118 Adjustment for stock-based compensation 18 16 Non-GAAP shares used in diluted EPS calculations 1,143 1,134 GAAP diluted earnings per share $7.59 $0.70 Effects of non-GAAP adjustments 0.70 0.60 Non-GAAP diluted earnings per share $8.29 $1.30 Net cash provided by operating activities $17,525 $8,507 Expenditures for property, plant, and equipment (15,857) (8,386) Payments on equipment purchase contracts — (149) Proceeds from sales of property, plant, and equipment 48 99 Proceeds from government incentives 2,005 315 Investments in capital expenditures, net (13,804) (8,121) Adjusted free cash flow $3,721 $386 Consolidated results Non-GAAP reconciliations
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September 23, 2025 5050 FQ1-26 guidance Non-GAAP reconciliations *GAAP earnings per share based on approximately 1.13 billion diluted shares and non-GAAP earnings per share based on approximately 1.15 billion diluted shares. The above guidance does not incorporate the impact of any potential business combinations, divestitures, additional restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our cont rol. GAAP Outlook Adjustments Non-GAAP Outlook Revenue $12.50 billion ± $300 million — $12.50 billion ± $300 million Gross margin 50.5% ± 1.0% 1.0% A 51.5% ± 1.0% Operating expenses $1.49 billion ± $20 million $148 million B $1.34 billion ± $20 million Diluted earnings per share* $3.56 ± $0.15 $0.19 A, B, C $3.75 ± $0.15 Non-GAAP Adjustments (amounts in millions) A Stock-based compensation – cost of goods sold $111 B Stock-based compensation – research and development 98 B Stock-based compensation – selling, general, and administrative 50 C Tax effects of the above items and other tax adjustments (39) $220
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