Micron Technology's Weak First-Quarter NAND Flash Memory Results Lead Analysts to Cut Targets

Micron Technology (MU) suffered a larger-than-expected decline in NAND flash sales when it reported fiscal 2025 Q1 results, prompting analysts to downgrade and cut price targets several times.

Micron reported it had adjusted earnings per share of $1.79 for the fiscal year ended November 28, with revenue up 84% YoY to $8.71 billion. Analysts had expected earnings of $1.77 per share on revenue of $8.71 billion, so the financial results themselves weren’t a real cause of disappointment, but segmental operating data and guidance were.

The company's adjusted operating margin was 27.5%, above the expected 27%. Cash flow from operating activities was $3.24 billion, below the expected $4.1 billion. Datacenter and HBM trends remained relatively strong, but weakness in the PC and mobile markets put downward pressure on memory prices, especially NAND.

In particular, Q2 FY sales were expected to be $7.9 billion, below the expected $8.3 billion. Q2 FY gross margin was 38.5%, below the expected 40%. MU expects NAND (pricing) headwinds to continue in the Q3 FY 2025.