Micron Technology (MU) 18 Dec 242025 Q1 Earnings call transcript

Thank you for standing by, and welcome to Micron's Post-Earnings Analyst Call. [Operator Instructions] As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Satya Kumar, Corporate Vice President, Investor Relations and Treasury. Please go ahead, sir.

Yes. thank XXXX welcome Post-Earnings and Fiscal Micron Jonathan, Quarter First Analyst you, you, to and Technology's Thank Call.

Murphy, Global Joining Micron's me and of Chief Sadana, Mark Operations; Business Officer; today Manish Bhatia, are our CFO. Sumit EVP

results to a may other forward-looking regarding differ include statements matters. to trends drivers These market discussing results cause expected subject market statements and supply, forward-looking the our statements we're risks and and from As that made reminder, and today actual and matters uncertainties demand guidance materially are and today.

we you to upcoming filed refer of including our We SEC, a our for recent documents risks and have XX-Q with affect may results. Form the that discussion most XX-Q

guarantee that Although activity, the and of expectations we achievements. we performance statements believe cannot results, future the levels in forward-looking reflected are reasonable,

statements under the update no conform to Q&A. to statements to open call to duty results. are the any actual forward-looking We of We now can these

Harlan our first from for from today JPMorgan. comes And line question Sur of the

two So I've questions. got

On lower talked the it's HBM, mix, pricing, anticipating You decline NAND-related, DRAM in mix margins positive offset like all almost guys gross pricing, as for in you server pricing. But are QX, DRAM, you mentioned, qualitatively, right? what weak guys XXX impacts, partially by about shipments. basis point commodity

I my blended So question DRAM is pricing is, QX? guess up sequentially in

Yes.

pricing. we think I really guide for don't

modeling, mix are HBM given trajectory. trajectory reasons. continues center, and that and remarks a overall lot on we a be good actual data prepared revenue of Mark help trajectory. of your the competitive comments growth expectation the in heard have in on points you guidance made, overall for think a to the basically, And we continues you that robust. Sanjay improvement continues can think Data good comments the going but pricing to on set I you I not provide that the

our overall quarters, in do moderation a have data in XXXX. near-term growth center past calendar SSD we of and trajectory expect robust, through remains we the very center to lot fiscal the and after performance underpin While revenue some data that

And about related And positives. NAND-related the seasonality, to so challenges. those course, near-term are the we market issues of environment, spoke

So of FQX some us The these and mix for XXX that in robust FQX the of results of growth is DRAM overall we data only some what some and center those the is of terms the we ensure similar what fairly despite delta, mentioned is headwinds. in have are areas. helping in basis point margin to headwinds other still

then And up. maybe follow No, to that's helpful.

and and inflections I've of said data the before, this big always in center increase X% X% guys PCIe XX% One 'XX XX% -- share, been share our strong where the to you from of I Micron-specific and strong one is right? to the have market in SSD mean Mainstream NVMe gone has enterprise to in like last have exiting year. guys you SATA. been calendar

it I in in QX, XX%, like again was fiscal QX. your grew and think sequentially share

SSD, data $X.X of NAND like XX% overall is my So $X.X guess your of business. center billion, billion that's

can #X center guys just demand the pull reacceleration SSD data so AI those in in because center sequential calendar #X leader. just fiscal growth right, 'XX expect now is in and SSD SSD strong? overall and just QX. QX as market are impacting lumpy data fiscal 'XX You you for business products or mentioned, do share know that's guys But enterprise be I you

Yes.

laid I it think well. you really out

rejuvenation industry-leading seen been years. portfolio tremendous This our have business SSD we and has over in investing products our X, for We product years the a progress center made now, in with had have area an been in X tremendous data now. we

we SSDs. SSD XX-terabyte announced. just XX-terabyte So

in the on GenX PCIe SSD SSD market. The the First XXXX fastest XX-terabyte world.

have enabled that So solid amazing there market these performance. several get and of us are to revenue share a performance, record-setting really to products quarters lots of

that, do data center customers expect trajectory on mentioned, strongest future ever our So continuing the us you that lumpiness our and that we should FQX, from FQX that history. now the and center with get beyond do should data SSD for that ahead remain to a we strong, expect from into we as enable have then in overall shipments been grow has quarters, is CapEx growth it look there opportunity we beyond because restarting portfolio in to significant end in the bit the

question And next the from from comes of line Wells Fargo. our Aaron Rakers

as underload see just to question, in up? the constraints as into the flat like are relative about charges, the potential go want questions implying of margin margin Is two call. prepared XQ we trying it to there first XQ? have gross could as to what I less? And being are I frame into to I'm bit kind margin to well. Or trying you say it understand fiscal a talked -- Trying see potential? there thinking constrained? the kind on kind positive the quarter. underload. back of little I'm necessarily to you XXX? with to third gross gross points? you're is some I drivers And from fiscal you trying you're the understand, Is far basis Mark, rather, that about Q&A constraints, fiscal impact isn't that of frame guess a the you implying that to Is Even XXX of it to when

Yes.

gross not we're third Aaron, So guiding margin. quarter

a we know items market conditions, unfavorable do we're be to conviction we there fiscal. number, The quarter. high that we challenging extend NAND just which What overlaps calendar believe, our when on. the third that are third to into persist into that some is trying So make that mindful with we quarter have QX, it's sure a provide number

still an And that's so issue.

and costs then and or XXX closer hit effect inventory. period the you of then charges impact. basis underload XXX and the XXX cost quarter, those quarter third and quarter that begin is, the margin some occur points, then DIMMs, mentioned, continued effects data I in call, that HBM, products, and in in favorable to hit center, higher higher just basis the high-capacity And points mix continue as mentioned And second definitely important form there beyond, will growth that are most the from will benefits third which some on LPDRAM. continued thing is and And to is in to

but in is And market growth SSD then as NAND, better center mentioned, growth data and in Sumit volume continuing. conditions volume

term these quarter in volume second and items in declines these up margin the all the inventory expect inventories NAND beyond in will, finally, dollars clear we because DRAM near DIO And and be that be then believe, support So quarter. been expansion. Aaron, to we've will we of third the up.

overall be recovers, fourth the levels. we healthy NAND overall from DRAM And are DRAM, inventories at inventories DRAM still And expect through as tight target year, quarter. the not the to second fine the where DRAM, leading as to then inventories below end edge on In continue NAND as point to that will our very of the end of while quarter. will will inventories where market improve third and and year, we're to second they then NAND, improve

quarters But of a ramp? share from lot GBXXX HBM Yes, where Micron's think is that data guys How Blackwell NVIDIA. as you things that And would LPDDRXX highlighted center understandably. your the -- into characterize product And and getting within curious. you that position opportunity? I'm cycle those just LPDDRXX views relative . one you over I of focus of is obviously, follow-up, then helpful. placed have is last the quick that's know a several on the

Yes, actually data we are the the memory of supplier LP pioneering in center.

not for are LP that RAS position worldwide, Over time, If environment. having center memory you it of the Micron pole market built purpose think that for needed right driving center in we but driven the that there'll others, the the of pretty in deploy to innovations data about data for center much is a be are all data now. was

reliability, So solution. is is into DDRX an that available serviceability not LP availability, in built

that are us. center, overall you're dollars. LP is is the high-capacity DIMMs to partnering customers in for these Micron Data is be And is And hence, product drive now data are It's data important in what ones really in an this comes to strategy. of that this to you data look advantages dollars. HBM and overall market than this important in in And business. customers year-over-year billions going the XX% itself portion who the separately center first SSD of the the data center, data is multiple you the X we seeing RDIMMs, something DIMM important growth the part significant dollars. driven of that FQX, momentum multi-billions of that multiple category. And data of made center has our the is of the then the company for going categories in sequential the our at center, were XXX% opportunity advantage of to XX% that high-capacity when we drove combine that And of combined data where our part some center have revenue we innovations we with center XXX-gigabyte center. with in a with offer the die-based greater billions with really mono from be

Caso And line question Research. our next from of Wolfe Chris comes from

of have and call. incremental bit months? a precipitated of is, Yes. kind inventories what of -- what expected I in kind caution than changed some they clarity -- last a to the a do of just were it the signs it a the cautious have Was think of back guess on the back in the maybe turned the know I the you and out of cautious that function it some we or had received I last of kind and guess there question function is be is was of over bit, may little first earnings demand? more might couple customer forth question some some is here August

Yes.

Let changed. what me address maybe try to

delayed. It will a we we the over of bit have the little will seen happen if mentioned we to customers pushout the we in drivers anticipating. happen. And It and XXXX. CQX, happen. customers believe you why prepared of refresh it's think been that as numerous in not course our like been PC the which are anticipating, had So cycle about refresh cycle believe refresh been There that our won't remarks our had cycle a just

become a has tooth, PC will The improvement the driver we the in they future-proof is a come specs, ultimately XXXX. PCs these mix number hardware unit modest be long that positive from to keep will average in believe an it their is growth, will the PCs pretty of as And people content of upgrade. that higher look very in for memory volume look which why even and to ripe age years, the for with

shipment PC has 'XX But at level and delay calendar our flattish forecast the that that upgrade is end cycle means at been customers calendar PCs the year-over-year in in reduced very unit our for 'XX. now

driver. So has one that been

inventories earnings the seasonality CQX, other we at reduction impacts. is in that highlighted as our are we as that The and healthier call expected would had the inventory definitely well become last by the That continuing spring inventory customers. of those that

Some the moderation. impact coming from

previous lumpiness just You of discussion side. the demand short on mentioned about we ago a while SSD -- had center data

moderation center into buying after several in So of CQX over some 'XX. data calendar quarters significant SSD in bout

very have mention limited those demand the of robust. data and that impacted in impact I the are center near-term wanted segments, the that be of But to is consumer-oriented the things So just outlook. trajectory continues the to to most

the trajectory. Our own very fiscal segment trajectory overall view calendar of 'XX, in revenue data solid a remains center 'XX through

our seen well have highlighted. we that FQX as You results

the a we SSD, in which will couple data moderation So the pick expect again months. segments and of temporary very mainly consumer-oriented it's center of some up

because industry. we think you from NAND are shipping these will ship do and time, by is shipment than rate customers if about growth expect the lower inventories at to than be a they're to consumer-oriented much are And that now, out we so back then consuming And from a us DRAM because purchasing they their at are segments, and rate the faster that healthier. these just spring we right

the The much that non-HBM will the fiscal healthier then pressure growth is healthier by place inventory a in be then better. So spring half of for will resumption to of effect overall, continues in place. DRAM HBM year be supply. that's we shipments and the a continuing the a of shipments be much be And and in things to of second much availability and supply tight. will expect

with So is are we the the a our related, and the NAND large there demand. actions to and issue balance part outlined taking have supply of we decisively on bring supply the

that. just helpful. mean a to That's I follow-up

and now I -- is demand DRAM versus with How much loaded mid-teens this of -- I And lower seeing for on DRAM QX. terms going QX? DRAM have assumption overall growth of you're in NAND what's the for Because, you for with on growth think guess, you've and in In you NAND? But for bit given that QX... been guess, that I with bit specific bit clear very DRAM, back-end versus year, what for demand how NAND. really the is that weren't

Yes, to down did Chris, say second be decline meaningfully. down the will We revenue would that NAND quarter would just of we clear, in bits that versus be QX. DRAM The be be majority said NAND.

side, center very DRAM the strong. largely the segment mean, in for FQX So driven very I described the segment, on right? data the side DRAM decline segments, on is strong I I yes, the consumer-oriented by dynamics mean

feel So that the it's headwind get a lot going we're that's frame. to segments. that, we spring really in -- And of the past time consumer-oriented

improve CQX, things will after So start there. to

volume sequential DRAM we Mark sequentially volume. DRAM but is in do So decline expect sequential had volume, increases NAND in both FQX. and NAND meaningful in what decline the starting in in a mentioned, FQX

of And our next from from the comes Vijay Mzuho. question Rakesh line

as -- have down? year? is up capacity? HBM coming that goes you much the maybe goes on conventional capacity next I much How next DRAM HBM up think can how follow-up. the wondering size capacity, your Just you a do And year, your

Vijay, it's Manish.

DRAM in is towards points the and between think as at our ratio and data is we've X. -- mature HBMXE the I HBM yields DRAM we So -- given trade that go conventional HBM,

because how of to can X which math achieve wafer every conventional of our our one, share, on for in you we do grow we'll will that's in math of the next bits the -- sort as -- would for number starts calendar share that one we for do towards sometime starts in you essentially to how determine of or conventional the can natural -- So at our much -- that impact be 'XX, going we year DRAM and wafer HBM we're every to bit expect much have our have had have HBM same DRAM.

share with demand -- being we will growth calendar able as through on go I maintain here transition talked industry focused are our 'XX. bit bit we growth And be year. bit we in for overall next the to And our DRAM had line the think that Atrium about numbers DRAM numbers

it. the the to Got then can And and conventional side, and CapEx on DRAM talk you what's split between HBM NAND?

is specifically, of needed you we're HBM I the that's to room capital specific HBM fabs don't we have test it product, that whether both the the and of out the HBM that's the trade overall bid specific largest in are and for HBM said in know the that, about facilities on capability, clean our construction plus this breaking in think focused by also front-end in we're terms you or for process but in fiscal and this new when all able assembly to impacted the in you -- back end. some or also that to that have maintain of be areas Other CapEx output year. ratio, the CapEx as portion

know, you in, that and we have As we're facility a others. in investing India

the than It's Yes, spend clearly, percent -- we've Vijay, on NAND business revenue. lower is cut the is percent we've CapEx NAND. in -- lower the NAND mentioned of

the DRAM by HBM as ratio So spend, it's there. much is and lower largely a spend. And trade effect this driven requirements mentioned, Manish

question from our the Brian from Stifel. next Chin of And comes line

to supply suppliers of how take of a ask heard this disclosed early similar similar few Do you've expect least reduce the previously? reducing quickly in some they suppliers wafer these to like side. XXXX, to of Maybe NAND to other some slow larger inputs. actions were kind the other starts, of But I'm wafer on first going as maybe back today. time more or NAND lag actions you maybe did questions. with at to one We've follow

the Difficult is at view we aligned. demand from are actions of rather will immediately. or our growth and us things decisive What growth others' market look do. supply we least what feel we We'd at help would how say to for And not view like us these activities. speculate others coming Micron's we to the and taking project can predict of be

we doing, what that's So are Brian.

from don't the it I your it's Okay. have sales for crossed match side, DRAM next your holding actually be so That's global that fiscal indicating majority And would mix? products. of will of then And quarters shipments ago several XX% now closely bit inventory, a was shifted Meaning you've I your specialty, than on or think shipment DRAM many that the production of lot back quarters your DRAM over just types actually expected. DDRX DDRX. internal those DDRX year-end. mix you're through a DDRX, Does you're structurally, HBM this but lower ratio production not to high that only

cycle Yes. will mean we more that support this I over et right, do correct. And and the with life long of approximately have cycle of LPX, year. remainder products clarity, defense, mean, of we in different just that's effect. the time DDRX range do long that -- I automotive, like that's some for have for for we mean I industrial, have that fiscal XX% cetera, aerospace, revenue segments

the grows, However, as will level. of at remain our contained a these mix overall revenue products very

constrained. mix products, have nodes very to a leading-edge shifted leading-edge and lot We our our these of are

view of our continue calendar very view from are lot even 'XX natural you're we the share fast are calendar time ramp of our results And we getting of we 'XX. in seeing to to second a as our HBM, half of dedicating maintaining of HBM, So and that. of increase a to capacity the

happening. data the shift are we growth side in that about is that smartphone the And that in even supporting. the spoke on leadership the So the and lot LP center, place. growth a you're of I seeing DDR leadership is And taking mix flagship LPX

So yes, definitely, that shift is very meaningful.

from next our line comes And of & the Quinn from question Needham Company. Bolton

to think the that's XX% said come be you comment wanted for that Mark, if the down I I on decline. just it right, could mean would your to of NAND. And I sequential back plus. NAND account most

was want consumer-facing sure then said? that, you So follow-up And that what on a I you just right the to I I heard make indeed got business.

quarter the second of -- it's sequentially. decline versus Yes. majority the I revenue

Okay.

Okay. And thought It talked have you some you QX. levels high the like then through just might -- made you inventory sounds quarter. last about progress fiscal

to if wondering second able quarter, might is to Just give or last us quantify any basis? of much reduce left a sort you you you X you most are quarter talk fiscal if the from be just Can through but the reduction didn't be get assume you of sort have on in maybe that happening you through? how is is And week left? that weeks in want that -- of might percentage on looking don't where in And wondering started how spring? where -- a to inventory a sense you on, through basis, you started, how week's able gotten much from probably QX, much if much to I you

overall talking Quinn? you inventories, Are

Yes.

that decline kind consumer-facing into of to business fiscal Just that on mostly be the sequential most QX. driving seems of

Yes.

deterioration as But overall. down So volume-related second have XXX first DIO decline break quarter. below the progress you've market. in DIO inventories in in noted. we down quarter, was we did by the didn't make or days We a

up. second on phenomenon. volume-driven dollars first go have -- absolute again, inventory So this a to we'll have DIO go a we'll is up And quarter,

cycle center continued SSD the then And the do inventories center through we in in the and and markets, down data to year, consumer and part consumer-related resumption in volume due and growth content-driven see NAND growth the of there, from our data refresh both drawing strength, DRAM.

able will DRAM, Now be see. we market the have that to we leading-edge need inventories in our just now supply we to

and our end by target total DRAM inventories below going ]... our levels to So we're today, of on fiscal [ forecast

guess your more in question shipping sheet, in on it sounds by current was think than low the I other inventory consumption you QX? said with rather is the maybe your of Sorry, you again guess at way my like sort consumption customers you Mark. I QX. shipping start balance line

on was that see place inventories earlier in thought spring. I to covered that we better Yes. the a getting

Sumit out shipping as in mentioned, -- they're than we're So but or shipping less consuming.

in and year beyond fiscal second So our quarter. their our consumption through have related demand we both confidence that 'XX inventory

And the of our line UBS. next from comes Timothy question from Arcuri

you to Mark, I just -- think clarify what I heard said. want that I

you're that. 'XX. So line going you in said of number saying down, for going shipments, low you the two, in are of growing market? doubles, Is your bit that that And Because with is think think terms you right? going you mid-teens they're then to took to demand I the one. you're undership would -- which that calendar to I but Number be DRAM sort undership

to bit industry we've quarter said We We expect with the yes, -- down industry. we said gave mid-teens. -- demand ship will that second industry DRAM. said bit line that in supply -- for well, volumes industry and we the in said or And we be

For year? year? the For the

year. the For

Yes.

Okay. in you're demand And to about low is undership fair? would the going that guess Is NAND what doubles, that mean year. for I up NAND? I but then

stable and and NAND, 'XX 'XX. generally, we calendar mean, that to 'XX. share both I expect and 'XX year, No. DRAM the Across bit true across have in for is

stable. We expect to have relatively

there, Some share bit but noise years. stable across both of and here those relatively

Okay.

that NAND that So Is you'll going be close double-digit so are shipments -- fair? low ship demand. to your to up like

fiscal, year. we the things always and fiscal want There's because X-month have skews I just yes. Yes, a careful but between to skew calendar that versus right? be somewhat, calendar

that things. changes So

I I was calendar But mean, to talking calendar. Yes.

demand So number in year you're giving calendar to I'm just for a say trying the year. calendar because just us

calendar in you're ship NAND. both to going So line that for roughly and in DRAM I'm saying year,

Yes. That's right.

of Sankar comes next [Operator the from Instructions] Cowen. line TD from Krish question Our

in. wonder is customers there if conditions and being like regarding like so, can duration in your or clarify cancel? place. are Are for specific If I'm these Hadi agreements limits HBM I wondering would comments Krish. cancelable? under locked restrictions This I agreements the volume what to pricing and

these bits to of customers we by certain of -- our agreements times are times, these mean, them. these we lead that get pricing XX-high build cubes I are get into versus orders that lengthy relatively that relates we associated to ship lead amount And and with X-high given in then fast with and HBM purchase the to Yes. because as because more of and around quarter firm are the for. with product once share have grow And that possible ramping outlined. of, want extraordinarily of are environment we to supply industry, have customers as we as more humanly to able chasing an targets more our going we strong is the discussion possible -- the that fast be

not with yes, based so time changes, line, customers is customers strong a fairly that's cancel that consistency, have the very for. for If doing purchase in long firm orders it the it lead there's can And that lengthy very is can And time that when time us order. line a gives yes, if on have confidence times to make beyond and customers ramp that what from they been ahead. for purchase but place

next of from Goldman line comes Hari the And Sachs. our from question Toshiya

I the quarterly basis. a ramp how going HBM one think about on had forward on to and question

You guys don't revenue. HBM report

I sort this of it's assume $XXX be of I past But don't So $XXX again we're the million, a on quarter. nicely based you know, the quarter. quarters, said I'm going here. bit million guessing up did, in revenue to couple you've little estimating in everything over

and point then TAM quarter kind the comments but up, I you flatter. your calendar out the 'XX the made from flattens it market starting about when still think of here, goals, share trajectory this feels like on and So

the if way? what capacity thinking so, to Taiwan Is expect it insights it right should nicely. really capacity? increase when side your Is I supply helpful. Is would TSV to it the some Any we it be am of facility? curious, And I'm there tied the space? about And are -- Both? your constraints?

of the a question I'll pass DRAM we there a equivalent that supply talk So to over of give you a how we would is how to to then outline half the on. space Yes, to the market second our get HBM which and so is going to give your about plus opening sort with that ramp of did given relates that comments, is this share, it and Manish half there of $XX share calendar TAM you we I'll and we couple low have that's second billion the the for XXs and you. roughly in calendar view get 'XX, to in on be right? expectation

of are going numbers. haven't done for we for hit with you're ramp growth the and the we had half had that million report pass us to And question. first answer of your the in pretty that. that a based outlined expectation the We numbers the is data there we we so, over that but second be robust high. Now that, TAM you right, just may on occurring on revenue have mentioned. nonetheless, FQX crossed Manish to some to to we choose mentioned provide when that targets HBM points future, that quarterly to except don't the still little $XXX basis HBM a point on on for bit TAM we The I'll But it I outlined think a

that the a be as year it capacity go our able become we've this Yes, Toshiya, the the demonstrates comments had on that made to to choices X-high we XX-high ramp and we we scalable to 'XX. that increasingly We so exceeded -- have ramp, the how pleased a have calendar continuing gone. how think We've ramp that be strong -- move forward process towards transition to as we're process has about expectations that able it's and our here. prior are quarter, call going last the which through -- we're made will transition the to with some going important -- in we're

week-over-week had just qualifying adding really, and ramp. equipment as a just capacity over time gradually on new are capacity in just towards that and growing that than mind, had of new production And different different it's installing and HBMX. we a right ramp equipment now a product many X in in we It's move what we our as was we very we across bit Keep limited HBMX goal. process that HBMXE and -- happening it's dimensions in have no a quite

starting So we to HBMXE and next as gradually this a this were year very beginning year. ramp went we capacity are low and through we're and point we grow, continuing really are continuing as adding into from

the would going mix XX-high to the that portion of as Sumit as So a will revenue year year, the through see and calendar quarter-over-quarter through larger through of being expect as 'XX. year go get we 'XX fiscal go as even the through as think rest said, I growth solid you we and we're we still we our

does the and for today's you, session Thank ladies question-and-answer as as program. participation. conclude gentlemen, your This well

You disconnect. may Good now day.