Micron Technology Inc. (NASDAQ:MU)

Gross Profit Margin

The gross profit margin exhibited a rising trend from late 2020 through late 2022, peaking near 47% in mid-2022. Subsequently, it experienced a significant decline, even falling into negative territory around mid to late 2023. After this trough, the margin gradually recovered throughout 2024 and into 2025, reaching close to 40% by mid-2025. This pattern indicates a period of strong profitability followed by a downturn and a gradual recovery.

Operating Profit Margin

Operating profit margin followed a similar trajectory to gross profit margin, increasing steadily from approximately 15% at the end of 2020 to a high above 34% in mid-2022. A marked decline then occurred, reaching a low of around -41% in late 2023. Starting in early 2024, the margin improved steadily, returning to positive figures and approaching over 26% by mid-2025. The sharp negative margins suggest a period of operational challenges, which were later mitigated.

Net Profit Margin

The net profit margin increased from about 14% at the end of 2020 to over 30% in mid-2022, mirroring trends seen in operating profit. Then, a drastic downturn emerged, with net margins turning deeply negative (around -42%) during the second half of 2023. Recovery began in early 2024, with the margin rising back into positive territory and reaching almost 23% by mid-2025. This indicates heightened profitability followed by losses and eventual financial stabilization.

Return on Equity (ROE)

ROE showed a consistent upward trend until mid-2022, climbing from roughly 7.5% to above 20%. This was followed by a decline to negative values between mid-2023 and early 2024, reaching a low near -16%. The ratio then improved steadily, returning to positive territory and achieving close to 16% by mid-2025. This reflects a cycle of enhanced shareholder returns, a period of diminished profitability or losses, and subsequent recovery.

Return on Assets (ROA)

The ROA rose from approximately 5.6% at the end of 2020 to over 15% around mid-2022. Similar to other profitability metrics, it declined significantly thereafter, dropping below zero in mid-2023 and hitting about -11% in late 2023. From early 2024 onwards, ROA showed gradual improvement, returning to positive figures and reaching over 10% by mid-2025. The trend aligns with the overall profit margin patterns, indicating asset utilization efficiency peaked and then deteriorated before recovery.

The analysis of the quarterly financial data reveals notable fluctuations and trends in the company's revenue, gross margin, and gross profit margin over the observed periods.

Revenue

Revenue demonstrates an overall upward trajectory, increasing from $5,773 million in the earliest period to $11,315 million in the most recent quarter. There are periods of volatility, notably around late 2022 and early 2023 where revenue declined sharply from $6,643 million to $3,693 million, followed by a subsequent recovery in the following quarters. The data highlights a strong rebound and continuous growth post the downturn, with revenue reaching new highs by mid-2025.

Gross Margin

The gross margin follows a somewhat volatile pattern but generally reflects a growth trend correlating with revenue. Initially, it increases from $1,736 million to a peak of $4,035 million in mid-2022. A sharp decline is observed thereafter, plunging into negative territory between late 2022 and early 2023, indicating potential cost or pricing challenges during that period. Recovery is evident starting mid-2023, with gross margin progressively improving and reaching a significant high of $5,054 million by mid-2025.

Gross Profit Margin Percentage

The gross profit margin percentage exhibits marked variability, peaking at 46.89% in mid-2022, followed by a steep fall to negative margins up to -14.49% late in 2022 and early 2023. This indicates that cost of goods sold exceeded revenue during several quarters, suggesting operational inefficiencies or pricing pressures. The margin stabilizes thereafter, gradually returning to positive figures and steadily improving to nearly 40% by mid-2025, signifying enhanced profitability and improved cost management over time.

Overall, the financial data illustrates periods of volatility and challenges particularly in the latter part of 2022 and early 2023, with significant declines in profitability and gross margin despite relatively stable revenue levels. However, the latter periods show consistent recovery and strong growth across all key indicators, underscoring a return to operational efficiency and enhanced profitability towards mid-2025.

The analysis of the quarterly financial performance reveals significant volatility and dynamics in the company's operating income, revenue, and operating profit margin over the observed periods. Several notable trends and insights emerge from the data.

Revenue Trends

Revenue figures exhibit a general upward trajectory with fluctuations. Starting from approximately $5.8 billion at the end of 2020, revenue increased steadily, reaching peaks above $8 billion during late 2021 and early 2022. However, a pronounced decline is visible around late 2022 to early 2023, where revenue drops sharply to near $3.7 billion. This period is followed by a strong and continuous recovery, culminating in a peak exceeding $11 billion by mid-2025, indicating regained growth momentum and expansion.

Operating Income (Loss) Trends

Operating income mirrors revenue fluctuations but with greater volatility. Early periods show positive operating income, notably peaking near $3 billion in mid-2021 and early 2022. The trend reverses markedly in late 2022, entering into substantial losses, with operating income falling to around negative $2.3 billion. This downturn persists through early 2023 but transitions into a recovery phase thereafter, with operating income returning to positive territory by mid-2024 and rising sharply to around $3.6 billion by mid-2025. This pattern indicates cyclical challenges followed by operational improvements and enhanced profitability.

Operating Profit Margin Trends

The operating profit margin initially climbs from approximately 15% at the start of the period, reaching a high of above 34% in mid-2022, reflecting improved efficiency or favorable cost structures amid growing revenues. A substantial and rapid decline follows, with margins turning negative and reaching lows near -41% in late 2022. This period corresponds with the operating losses and reduced revenues. Subsequent quarters see a phase of margin recovery, with profitability margins turning positive again by mid-2024, climbing steadily to exceed 26% by mid-2025, suggesting restored operational effectiveness and cost control.

General Observations

The data shows a cyclical pattern characterized by a growth and profitability phase from 2020 to mid-2022, followed by a severe downturn across late 2022 to early 2023, and a strong recovery phase thereafter. The severity of the losses and negative margins during the downturn point to significant operational and possibly market-related challenges. The subsequent recovery phase indicates successful adaptive strategies or improved market conditions. Revenue growth outpaces earlier levels by the end of the observed timeline, and operating margins recover to robust levels, reinforcing positive momentum in profitability.

The financial data reveals several noteworthy trends over the analyzed periods, highlighting fluctuations in revenue, net income, and profitability margins.

Revenue

Revenue displayed an overall upward trend with some variability. Starting at 5,773 million US dollars, it increased steadily, peaking initially at 8,642 million in June 2022. Subsequently, a significant decline occurred during late 2022 and early 2023, reaching a low point of 3,693 million in March 2023. Following this trough, revenue recovered progressively, surpassing previous highs and reaching a maximum of 11,315 million by August 2025. This demonstrates a strong recovery and growth trajectory in later periods.

Net Income (Loss) Attributable to Micron

Net income exhibited considerable volatility. From positive values in the early periods, with a high of 2,720 million in September 2021, net income then sharply declined, turning negative from December 2022 through August 2023, with the lowest losses recorded at -2,312 million. After this challenging phase, profitability resumed, with net income returning to positive figures from February 2024 onward, culminating in a significant gain of 3,201 million by August 2025. This pattern reflects periods of both strong profitability and substantial losses, followed by recovery.

Net Profit Margin

The net profit margin followed a pattern consistent with net income trends. It rose steadily from approximately 13.6% in early 2021 to a peak near 30.6% in June 2022. Thereafter, the margin deteriorated considerably, dropping into negative territory during late 2022 and early 2023, with a low near -42.5%. The margin gradually improved thereafter, returning to positive levels by early 2024, and further strengthening to over 22% by August 2025. This indicates a period of declining profitability followed by gradual restoration and improvement.

Overall, the data reflects a business experiencing growth with intermittent financial challenges that affected net income and profit margins during late 2022 and early 2023. Despite these setbacks, both revenue and profitability demonstrated resilience, achieving strong recovery and improvement in subsequent quarters through mid-2025. This suggests effective management of adverse conditions and a positive outlook for future performance based on recent trends.

The financial data reveals notable fluctuations in the company's net income and related profitability metrics over the observed quarters. Initially, net income exhibited a generally upward trajectory, increasing from $803 million to a peak of $2,720 million within the first four quarters. This rise reflects a period of sustained earnings growth. However, starting from the quarter ending December 1, 2022, there is a sharp reversal, with net income falling into negative territory and reaching a low of -$2,312 million in the following quarter. This indicates a significant profitability challenge during that period.

Following this downturn, net income remained negative for several quarters but showed gradual improvement, turning positive again in the quarter ending February 29, 2024. From that point, net income steadily increased, reaching $3,201 million by August 28, 2025, which not only recovers prior losses but surpasses earlier peak levels. This recovery phase suggests effective corrective measures and strengthening of financial performance.

Shareholders' equity demonstrates a consistent upward trend throughout the entire period, increasing from approximately $39.9 billion to $54.2 billion. This steady increase signals ongoing capital accumulation and retained earnings growth despite fluctuations in profitability. The rise in equity supports the company's financial stability and capacity for future investments.

Return on equity (ROE) follows a pattern similar to net income with some expected lag. It improves from 7.51% to a high of 20.12% by June 2, 2022, coinciding with the rise in net income. Subsequently, ROE declines sharply, turning negative and reaching trough values of -16.02%. This negative ROE phase matches the period of substantial losses, indicating reduced efficiency in generating returns on shareholders' capital during those quarters.

As net income recovers and shareholders' equity continues to grow, ROE also rebounds, moving back into positive territory and eventually climbing to 15.76% by August 28, 2025. This positive movement in ROE reflects restoration of profitability and more effective use of equity capital over time.

Overall, the financial trends depict a significant earnings volatility with a pronounced dip around late 2022 to early 2024, followed by a strong recovery phase. The continuous growth in equity provides a solid foundation despite the interim profitability challenges. The interplay between net income, equity, and ROE underscores a period of adjustment and strategic recalibration, culminating in improved financial health and enhanced shareholder value metrics by the end of the observed period.

Net Income (Loss)

Initial growth followed by sharp decline to losses; subsequent recovery exceeding previous peaks.

Shareholders’ Equity

Consistent growth throughout, indicating strengthening capital base.

Return on Equity (ROE)

ROE peaks with rising income, turns sharply negative during loss period, then recovers alongside net income improvements.

The analysis of the quarterly financial data reveals significant fluctuations in net income (loss) attributable to the company over the observed periods. Initially, the net income shows a generally positive trend with increases peaking around the third quarter of 2021, followed by a notable decline towards the end of 2022, where losses are recorded. After this downturn, the company experiences a recovery period starting in early 2024, with net income turning positive again and increasing steadily through mid-2025.

Total assets demonstrate a consistent upward trajectory throughout the entire timeframe. Starting from approximately $53.7 billion, the assets grow steadily each quarter, reaching over $82.7 billion by the third quarter of 2025. This steady asset growth indicates a solid expansion of the company’s asset base, despite fluctuations in profitability.

Return on Assets (ROA) reflects the company's profitability relative to its total assets and exhibits a pattern closely aligned with net income trends. ROA begins at a moderate level, improves substantially until around mid-2022, peaking before decreasing significantly into negative territory by the end of 2023. From early 2024 onwards, the ROA gradually recovers, returning to positive values and showing improvement through mid-2025. This suggests that the company’s efficiency in generating profits from its assets has undergone volatility but is on an upward path again.

Net Income (Loss) Trends

Positive growth period peaking in third quarter 2021, followed by sharp decline to losses near the end of 2022, then recovery starting in early 2024 with steady improvement.

Total Assets Trend

Consistent and steady growth throughout the period, nearly a 54% increase from the starting value to the end of the timeline, indicating ongoing asset accumulation and expansion.

Return on Assets (ROA)

Increasing trend during initial quarters correlating with income growth, a marked decline into negative values coinciding with periods of loss, followed by a progressive recovery matching the turnaround in net income.

Overall, the data suggest a cycle of strong performance followed by a challenging period with losses and asset efficiency decline, eventually shifting back to recovery and improved profitability. The continuous increase in total assets throughout indicates the company’s sustained investment and growth initiatives despite the intervals of negative earnings.