MICRON TECHNOLOGY INC

Results of Operations

Consolidated Results

Total Revenue: Total revenue for the third quarter of 2025 and first nine months of 2025 was impacted by the factors described in the section titled “Industry Conditions” above.

Total revenue for the third quarter of 2025 increased 15% as compared to the second quarter of 2025 primarily due to increases in sales of both DRAM and NAND products.

•Sales of DRAM products increased 15% primarily due to an over 20% increase in bit shipments, partially offset by a low-single-digit percent range decrease in average selling prices primarily due to a higher consumer-oriented revenue mix.

•Sales of NAND products increased 16% primarily due to a mid-20% range increase in bit shipments, partially offset by a high-single-digit percent range decrease in average selling prices.

Total revenue for the third quarter of 2025 increased 37% as compared to the third quarter of 2024 primarily due to increases in sales of both DRAM and NAND products.

•Sales of DRAM products increased 51% primarily due to a mid-20% range increase in average selling prices and an increase in bit shipments in the low-20% range.

•Sales of NAND products increased 4% primarily due to a low-30% range increase in bit shipments, partially offset by a low-20% range decrease in average selling prices.

Total revenue for the first nine months of 2025 increased 50% as compared to the first nine months of 2024 due to increases in both DRAM and NAND sales.

•Sales of DRAM products increased 60% primarily due to a high-40% range increase in average selling prices and a high-single-digit percent range increase in bit shipments.

•Sales of NAND products increased 29% primarily due to a high-teen percentage range increase in bit shipments and a high-single-digit percent range increase in average selling prices.

31 | 2025 Q3 10-Q

Consolidated Gross Margin: Our consolidated gross margin has been impacted by the factors described in the section titled “Industry Conditions” above. Our consolidated gross margin percentage increased to 38% for the third quarter of 2025 from 37% for the second quarter of 2025, primarily due to an improvement in margins for DRAM products, partially offset by a decrease in margins for NAND products. DRAM margins improved primarily due to an increased mix of HBM and manufacturing cost reductions driven by improvements in product and process technology. NAND margins declined primarily due to decreases in average selling prices. Our consolidated gross margin percentage improved to 38% for the third quarter of 2025 from 27% for the third quarter of 2024 and improved to 38% for the first nine months of 2025 from 17% for the first nine months of 2024. Improvements in our consolidated gross margins for the third quarter and first nine months of 2025 compared to corresponding periods of 2024 were primarily due to increases in average selling prices for DRAM products, manufacturing cost reductions, and an increased mix in sales of high-margin cloud products, particularly HBM. Our consolidated gross margin for the first nine months of 2024 reflected $987 million of benefit due to lower costs from the sale of inventories written down to their net realizable value in 2023.

Revenue by Business Unit

Percentages of total revenue may not total 100% due to rounding.

Changes in revenue for each business unit for the third quarter of 2025 as compared to the second quarter of 2025 were as follows:

•CNBU revenue increased 11% primarily due to higher sales of HBM products, which increased nearly 50%, along with growth in our high-capacity DRAM and low-power server DRAM.

•SBU revenue increased 4% primarily due to increases in bit shipments driven by increased demand in consumer markets.

•MBU revenue increased 45% primarily due to increases in bit shipments driven by reduced customer inventories and strong demand from DRAM content growth, partially offset by declines in average selling prices for both mobile DRAM and NAND.

•EBU revenue increased 20% primarily due to increases in bit shipments driven by demand in industrial and embedded consumer markets.

Changes in revenue for each business unit for the third quarter and the first nine months of 2025 as compared to the corresponding periods of 2024 were as follows:

•CNBU revenue increased 97% and 116%, respectively, primarily due to increases in average selling prices and bit shipments driven by improved demand, particularly in cloud server markets, including HBM.

•SBU revenue increased 7% for the third quarter of 2025 as compared to the third quarter of 2024 primarily due to increases in bit shipments, partially offset by declines in average selling prices for NAND. SBU revenue increased 57% for the first nine months of 2025 as compared to the first nine months of 2024 primarily due to increases in bit shipments and average selling prices for NAND.

•MBU revenue decreased 2% for the third quarter of 2025 as compared to the third quarter of 2024 primarily due to declines in DRAM and NAND average selling prices, partially offset by increases in bit shipments. MBU revenue decreased 7% for the first nine months of 2025 as compared to the first nine months of 2024 primarily due to decreases in DRAM and NAND bit shipments, partially offset by in increases in average selling prices.

•EBU revenue decreased 5% and 4%, respectively, primarily due to declines in average selling prices, partially offset by increases in bit shipments.

Operating Income (Loss) by Business Unit

Percentages reflect operating income (loss) as a percentage of revenue for each business unit.

Changes in operating income or loss for each business unit for the third quarter of 2025 as compared to the second quarter of 2025 were as follows:

•CNBU operating income increased primarily due to increases in sales of HBM products.

•SBU operating income (loss) deteriorated primarily due to declines in average selling prices, partially offset by increases in bit shipments.

•MBU operating income increased primarily due to increases in bit shipments and manufacturing cost reductions, partially offset by declines in average selling prices.

•EBU operating income increased primarily due to increases in bit shipments and manufacturing cost reductions, partially offset by declines in average selling prices.

Changes in operating income or loss for each business unit for the third quarter and the first nine months of 2025 as compared to the corresponding periods of 2024 were as follows:

•CNBU operating income improved primarily due to increases in average selling prices and increases in sales of HBM and other data center products.

•SBU operating income (loss) deteriorated for the third quarter of 2025 as compared to the third quarter of 2024 primarily due to decreases in selling prices for NAND, partially offset by increases in bit shipments and manufacturing cost reductions. SBU operating income (loss) improved for the first nine months of 2025 as compared to the first nine months of 2024 primarily due to increases in bit shipments, increases in average selling prices, and manufacturing cost reductions.

•MBU operating income decreased for the third quarter of 2025 as compared to the third quarter of 2024 primarily due to declines in selling prices, partially offset by increases in bit shipments and manufacturing cost reductions. MBU operating income (loss) improved for the first nine months of 2025 as compared to the first nine months of 2024 primarily due to increases in average selling prices and manufacturing cost reductions, partially offset by decreases in bit shipments.

•EBU operating income decreased primarily due to decreases in average selling prices, partially offset by increases in bit shipments and manufacturing cost reductions.

We initiated a strategic reorganization of our business units to a market segment-focused business unit structure, with AI growth opportunities in every business unit. We completed reorganization of our operations and organizational structure and began to manage operations under our new segment structure effective in the fourth quarter of 2025. The changes will require us to recast our segment reporting and we will report financial results under this new structure starting with our 2025 Annual Report on Form 10-K. See “Item 1. Financial Statements – Notes to Consolidated Financial Statements – Segment and Other Information.”

Operating Expenses and Other

Research and Development: R&D expenses vary primarily with the number of development and pre-qualification wafers processed, the cost of advanced equipment dedicated to new product and process development, and personnel costs. Because of the lead times necessary to manufacture our products, we typically begin to process wafers before completion of performance and reliability testing. Development of a product is deemed complete when it is qualified through internal reviews and tests for performance and reliability. R&D expenses can vary significantly depending on the timing of product qualification.

33 | 2025 Q3 10-Q

R&D expenses for the third quarter of 2025 increased 7% as compared to the second quarter of 2025 primarily due to an increase in employee compensation and higher volumes of development and pre-qualification wafers. R&D expenses for the third quarter of 2025 increased 14% as compared to the third quarter of 2024 primarily due to an increase in employee compensation and higher volumes of development and pre-qualification wafers. R&D expenses for the first nine months of 2025 increased 9% as compared to the first nine months of 2024 primarily due to increases in employee compensation and depreciation expense, partially offset by lower volumes of development and pre-qualification wafers.

Selling, General, and Administrative: SG&A expenses for the third quarter of 2025 increased 12% as compared to the second quarter of 2025 primarily due to an increase in employee compensation. SG&A expenses for the third quarter and first nine months of 2025 increased 9% and 7%, respectively, as compared to the corresponding periods of 2024 primarily due to an increase in employee compensation.

Other Operating (Income) Expense, Net: See “Item 1. Financial Statements – Notes to Consolidated Financial Statements – Other Operating (Income) Expense, Net.”

Income Taxes: Our income tax (provision) benefit consisted of the following:

The change in our effective tax rate for the third quarter of 2025 as compared to the second quarter of 2025 was primarily due to discrete items related to tax return filings during the second quarter of 2025. The change in our effective tax rate for the third quarter of 2025 and the first nine months of 2025 as compared to the respective periods in 2024 was primarily due to changes in profitability.

We operate in a number of jurisdictions outside the United States, including Singapore, where we have tax incentive arrangements. These incentives expire, in whole or in part, at various dates through 2034 and are conditional, in part, upon meeting certain business operations and employment thresholds. The effect of tax incentive arrangements reduced our tax provision by $240 million (benefiting our diluted earnings per share by $0.21) for the third quarter of 2025, $171 million (benefiting our diluted earnings per share by $0.15) for the second quarter of 2025, and $623 million (benefiting our diluted earnings per share by $0.55) for the first nine months of 2025, respectively. As a result of the low level of profitability and geographic mix of income, the benefit from tax incentive arrangements was not material for the periods presented for 2024.

Further changes in the tax laws of foreign jurisdictions could arise as a result of the base erosion and profit shifting project, including Pillar Two Model Rules (“Pillar Two”), undertaken by the Organisation for Economic Co-operation and Development (“OECD”). Nearly all European Union member states have enacted the Pillar Two legislation, which will be effective for us in 2025. We do not expect these enacted laws to materially impact our effective tax rate for 2025. On November 27, 2024, Singapore enacted legislation to implement Pillar Two, which will apply to us starting in 2026. While we are still evaluating the impacts, we expect our effective tax rate for 2026 to be in the high-teens percentage range. We also continue to monitor for additional guidance and legislative changes to Pillar Two in the jurisdictions where we operate.

Various tax reforms are being considered in multiple jurisdictions that, if enacted, contain provisions that could materially impact our tax expense. We continue to monitor the potential impact of these various tax reform proposals to our overall global effective tax rate and financial statements.

Other: Further information related to our operating expenses and other can be found in “Item 1. Financial Statements – Notes to Consolidated Financial Statements”:

•Debt

•Equity Compensation Plans