Micron Technology Inc Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Timothy Arcuri - UBS AG - Analyst : Thanks a lot. Mark, I was wondering if you could help on the guidance a little bit. I know you don't want to get into too much detail, but of the, let's say -- or sorry, of the $2.2 billion sequential this year -- sorry, the $1.2 billion sequential revenue, can you help us how that splits out between DRAM and NAND? And I guess, any gross margin puts and takes you might have as well would be helpful.

Question: Timothy Arcuri - UBS AG - Analyst : Thanks a lot, Mark. And then, Sanjay, I guess you had previously guided us to like $100 million HBM TAM by 2028, but since you give us that number, there's been some massive numbers that had been out, some TAM numbers by NVIDIA and some of the investments that are going on and what (technical difficulty) so it's obvious that the compute TAM is much bigger than what I think you probably alluded (technical difficulty) Do you have an update to that number? I would assume it's bigger than that number? And maybe can you comment on sort of what you're seeing next year? I know you're seeing something in the (technical difficulty)

Question: Timothy Arcuri - UBS AG - Analyst : Thanks a lot.

Question: Vivek Arya - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Thank you for taking my question. I'm curious, how do you see the transition from HBM3E to 4? When do you expect the crossover next year? And I think as part of that, you mentioned that the pricing for 3E is settled for '26. And I'm curious, what is the direction of that pricing versus what you're getting now? Is it higher or lower? And do you expect your 3E share to stay the same or change next year?

Question: Vivek Arya - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Got it. And for my follow-up, maybe, Mark, on the gross margin side. So what is just conceptually, how do you think about the puts and takes of gross margins as you go through the rest of the year, the [51.5%]? Is this kind of the baseline and as long as sales grow, can you expand off of this level? And then related to that, when I look at your cloud data center business gross margin percent operating margin is 48%. How much more room is there to expand from those very strong levels right now? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 23, 2025 / 8:30PM, MU.OQ - Q4 2025 Micron Technology Inc Earnings Call

Question: Vivek Arya - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Thank you.

Question: CJ Muse - Cantor Fitzgerald - Analyst : Yeah, good afternoon. Thank you for taking the question. I guess first question, it certainly feels like in the last month or two, there's been an inflection in DRAM demand led by inference hyperscalers. So curious if you could kind of speak to what you have seen, the breadth of demand, and particularly the sustainability of that. And would love your thoughts -- you've talked about tightness expected into fiscal '26. Your thoughts into this -- what is typically a seasonally slower February quarter, should we see kind of normal seasonality? Or are there supply trends so limited that things can hold up much better than kind of normal seasonality?

Question: CJ Muse - Cantor Fitzgerald - Analyst : Thank you for that. As a quick follow-up on CapEx, Mark, it appears net CapEx implied $18 billion versus $13.8 billion last year. I think you talked about front-end equipment versus clean room space and DRAM. Is there a way to kind of partition how much on equipment versus clean room? And then can you share with us what the implied gross CapEx is for fiscal '26? Thanks so much.

Question: CJ Muse - Cantor Fitzgerald - Analyst : Thank you.

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : Yeah, good afternoon. Thanks for taking my question. Days of inventory are now at your target levels as you had expected previously. And within that, DRAM is actually below your targets, right? So given the strong 3E 12-high RAM, continued strong demand for non-AI DRAM, how are you guys thinking about your total and DRAM inventories exiting this quarter? Will days of inventory continue to come down? And then just given the overall supply tightness, are your lead times extending and customers placing orders further in advance? And is this better visibility? What gives the team confidence on continued tightness into calendar '26? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 23, 2025 / 8:30PM, MU.OQ - Q4 2025 Micron Technology Inc Earnings Call

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : No, I appreciate that. Thanks for the insight. And Sanjay, as your customers continue to differentiate their GPU on XPU platforms? Memory continues to be sort of that key focus area of differentiation. As you mentioned, some of your HBM4 customers are looking for as much as 25% more bandwidth versus the plain vanilla [genetic] standard. It looks like the Micron team delivered a solution that's 40% more performing than the [genetic] right and well exceeding your customers' requirements. Did the team have to redesign the base logic die to achieve these impressive results? Just wondering if the higher performance HBM4 SKU maybe pushed out customer calls or have the call schedules remained on track relative to your original plan? But more importantly, even with the higher speeds, is your power consumption still superior to your competitive solutions?

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 23, 2025 / 8:30PM, MU.OQ - Q4 2025 Micron Technology Inc Earnings Call

Question: Krish Sankar - TD Cowen - Analyst : Yeah, hi, thanks for taking my question. I told them, Sanjay, you mentioned about getting sold out in HBM hopefully in the next few months. Is there a way to quantify the supply opportunity in calendar '26, assuming you're fully sold out? And also if the HBM demand is that better than expected, can you increase supply in calendar '26, if you're sold out in the next few months? And then I had a quick follow-up.

Question: Krish Sankar - TD Cowen - Analyst : Got it. Thanks, Sanjay. And then a quick question on HBM4. It was nice to see the 11 gigabits per second pin speed. You also said that you have the offering of both your in-house base die also that customized TSM logic die. Is there a way to figure out what do you expect that mix to be? Do you expect more customers to go with the in-house die or the TSM die? And how easy is it for you from the Micron standpoint of switching between the two based on customer demand? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 23, 2025 / 8:30PM, MU.OQ - Q4 2025 Micron Technology Inc Earnings Call