Analysis of Reportable Segments
Micron Technology Inc. operates in 4 segments: Cloud Memory Business Unit (CMBU); Core Data Center Business Unit (CDBU); Mobile and Client Business Unit (MCBU); and Automotive and Embedded Business Unit (AEBU).
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- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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Segment Profit Margin
Micron Technology Inc., profit margin by reportable segment
| Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | |
|---|---|---|---|---|---|---|
| Cloud Memory Business Unit (CMBU) | ||||||
| Core Data Center Business Unit (CDBU) | ||||||
| Mobile and Client Business Unit (MCBU) | ||||||
| Automotive and Embedded Business Unit (AEBU) |
Based on: 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03).
- Cloud Memory Business Unit (CMBU) Profit Margin Trends
- The profit margin for this business unit was negative at -41.03% before showing a significant turnaround with positive margins of 6.43% and 45.32% in the most recent periods. This indicates a substantial improvement in profitability, moving from a considerable loss to solid gains, suggesting effective cost management or revenue growth in the latest years.
- Core Data Center Business Unit (CDBU) Profit Margin Trends
- This segment also experienced a negative margin of -26.51% initially but demonstrated a clear recovery with margins improving to 5.12% and then to 30.16%. The upward trajectory underscores a successful shift toward profitability and enhanced operational efficiency over the periods analyzed.
- Mobile and Client Business Unit (MCBU) Profit Margin Trends
- The margin trend in this unit was initially a significant loss at -43.13%, followed by a near break-even performance at -0.01%, and subsequently improving to 16.7%. This progression reflects a gradual recovery from substantial losses to modest profitability, indicating positive changes in business conditions or management strategy.
- Automotive and Embedded Business Unit (AEBU) Profit Margin Trends
- This unit maintained consistent positive profit margins throughout the available data, starting at 16.43%, then slightly decreasing to 9.33%, and rising again to 11.72%. While the margins are positive, the slight fluctuations suggest some variability in profitability but overall stability within this segment.
- Overall Insights
- Across the reportable segments, there is a clear theme of recovery and improvement, particularly notable in the Cloud Memory, Core Data Center, and Mobile and Client Business Units, which all transitioned from negative to positive margins. The Automotive and Embedded segment displays stable positive profitability. These trends suggest an overall enhancement in operational performance and strategic execution across the company's major business units over the analyzed periods.
Segment Profit Margin: Cloud Memory Business Unit (CMBU)
Micron Technology Inc.; Cloud Memory Business Unit (CMBU); segment profit margin calculation
| Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | ||||||
| Revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03).
1 2025 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × ÷ =
- Revenue Growth
- The revenue for the Cloud Memory Business Unit exhibited a pronounced upward trajectory over the most recent three-year span. Starting from $1,872 million, revenue more than doubled to $3,792 million the following year and then increased substantially to $13,524 million. This pattern indicates strong sales expansion and market acceptance in the latest periods.
- Operating Income (Loss) Dynamics
- Operating income turned from a significant loss of $768 million to a positive figure, registering $244 million and ultimately rising sharply to $6,129 million. This reversal—from negative operating results to a robust profit—demonstrates notable improvements in operational efficiency, cost management, or product mix.
- Segment Profit Margin Trends
- The segment profit margin reflects the shift in profitability, beginning with a negative margin of -41.03%, shifting to a slightly positive margin of 6.43%, and then expanding to a substantial positive margin of 45.32%. This suggests an enhanced ability to generate profits relative to revenue, likely driven by increased scale, pricing power, or cost reductions.
- Overall Financial Performance Assessment
- The overall financial metrics depict a transformation from a loss-making status to a highly profitable segment. This is characterized by accelerated revenue growth, marked improvement in operating income, and a significant increase in profit margins. These trends collectively signal an effective strategic execution and positive demand dynamics within the Cloud Memory Business Unit in recent years.
Segment Profit Margin: Core Data Center Business Unit (CDBU)
Micron Technology Inc.; Core Data Center Business Unit (CDBU); segment profit margin calculation
| Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | ||||||
| Revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03).
1 2025 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × ÷ =
- Revenue Trends
- Revenue in the Core Data Center Business Unit exhibited a significant upward trajectory over the analyzed periods. Starting from 2,124 million US dollars, revenue increased substantially to 4,984 million US dollars, and then further to 7,229 million US dollars. This represents robust growth, indicating expanding business activities and market penetration within the data center segment.
- Operating Income (Loss) and Profitability
- Operating income figures reveal a marked improvement in profitability. An initial operating loss of 563 million US dollars transitioned to positive operating incomes of 255 million and then 2,180 million US dollars in subsequent years. This positive shift reflects enhanced operational efficiency, cost management, and possibly higher-margin offerings or better pricing power.
- Segment Profit Margin Analysis
- The segment profit margin proportionally improved alongside revenue and operating income. The negative margin of -26.51% moved into positive territory with 5.12%, and continued to increase significantly, reaching 30.16%. This evolution underscores a turnaround from loss-making to highly profitable operations, highlighting a favorable shift in the segment's business dynamics, cost structure, and revenue quality.
- Overall Summary
- The Core Data Center Business Unit has demonstrated strong financial performance improvements over the period under review. Key financial indicators such as revenue, operating income, and profit margin all show substantial growth, moving from loss to profitable operations with significant margin expansion. These trends suggest successful strategic initiatives and operational execution contributing to the unit's financial health and growth potential.
Segment Profit Margin: Mobile and Client Business Unit (MCBU)
Micron Technology Inc.; Mobile and Client Business Unit (MCBU); segment profit margin calculation
| Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | ||||||
| Revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03).
1 2025 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × ÷ =
- Revenue Trends
- The revenue for the Mobile and Client Business Unit (MCBU) shows a significant upward trend over the analyzed periods. Starting at 7,394 million US dollars in the fourth quarter of fiscal year 2023, revenue increased to 11,667 million US dollars in the same quarter of fiscal year 2024, and further to 11,859 million US dollars in fiscal year 2025. This steady growth indicates an expanding market presence or increased sales volume in recent years.
- Operating Income (Loss) Developments
- Operating income experienced notable fluctuations. There was a substantial operating loss of 3,189 million US dollars reported in fiscal year 2023, which improved considerably to a loss of 1,198 million US dollars in fiscal year 2024. By fiscal year 2025, the segment recorded a positive operating income of 1,981 million US dollars. This recovery from a significant loss to profitability demonstrates improved operational efficiency, cost management, or favorable changes in market conditions.
- Segment Profit Margin Movements
- The segment profit margin demonstrates a parallel trend with operating income. In fiscal year 2023, the margin was deeply negative at -43.13%, indicating severe unprofitability. This margin nearly reached breakeven in fiscal year 2024 at -0.01%, suggesting the business unit was on the cusp of profitability. By fiscal year 2025, the profit margin rose to 16.7%, reflecting healthy profitability and an improved contribution to the overall financial results.
- Summary Insight
- Overall, the Mobile and Client Business Unit shows a clear trajectory of financial improvement over the given period. Revenue growth combined with a shift from operating losses to positive income and enhanced profit margins underscores a successful turnaround. This may be attributed to strategic initiatives, market recovery, product improvements, or cost control measures. Continued monitoring is advisable to confirm if the positive trends sustain in future periods.
Segment Profit Margin: Automotive and Embedded Business Unit (AEBU)
Micron Technology Inc.; Automotive and Embedded Business Unit (AEBU); segment profit margin calculation
| Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | ||||||
| Revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03).
1 2025 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × ÷ =
The Automotive and Embedded Business Unit (AEBU) displays a notable presence in the most recent years under review, with data beginning from the year ending August 31, 2023. Revenue for the segment shows a steady upward trajectory, increasing consistently over the three reported periods. Specifically, revenue rose from $4,139 million to $4,631 million, and further to $4,753 million, indicating a positive growth trend and an expanding business scope within this segment.
Operating income exhibits some variability in the same timeframe. In the year ending August 31, 2023, the segment generated $680 million in operating income, which declined to $432 million in the subsequent year. However, the following year saw a recovery to $557 million. This fluctuation suggests periods of operational challenges or increased costs, followed by partial recovery, which may require further exploration to understand the underlying causes.
The segment profit margin, expressed as a percentage, also mirrors this pattern of fluctuation. After registering 16.43% in 2023, the margin decreased substantially to 9.33% in 2024, followed by a moderate increase to 11.72% in 2025. The profit margin movement corresponds with the changes in operating income, indicating that despite revenue growth, profitability pressures have impacted the efficiency or cost structure of the unit during these years.
- Revenue Trend
- Consistent increase over the three-year period, highlighting growth in sales or market expansion.
- Operating Income Trend
- Declined significantly from 2023 to 2024, with a partial rebound in 2025, signaling variability in operational profitability.
- Profit Margin Trend
- Decreased sharply in 2024, with some improvement in 2025, indicating fluctuating cost efficiency or pricing pressures despite rising revenues.
Overall, the Automotive and Embedded Business Unit demonstrates growth in revenue but faces challenges in sustaining operating income and profitability margins consistently. The fluctuations in profitability metrics suggest a need for management to focus on cost management and operational efficiency to improve margin stability alongside continued revenue growth.
Revenue
Micron Technology Inc., revenue by reportable segment
US$ in millions
| Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | |
|---|---|---|---|---|---|---|
| Cloud Memory Business Unit (CMBU) | ||||||
| Core Data Center Business Unit (CDBU) | ||||||
| Mobile and Client Business Unit (MCBU) | ||||||
| Automotive and Embedded Business Unit (AEBU) | ||||||
| All Other | ||||||
| Total |
Based on: 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03).
- Revenue Trends by Segment
- The Cloud Memory Business Unit (CMBU) demonstrated significant revenue growth over the latest three reporting periods, surging from $1,872 million to $13,524 million. This represents a rapid expansion, indicating a strong market demand or successful product adoption within this segment.
- The Core Data Center Business Unit (CDBU) also showed notable increases, growing from $2,124 million to $7,229 million during the same timeframe. Although the growth is substantial, it is more moderate compared to the CMBU.
- The Mobile and Client Business Unit (MCBU) experienced consistent growth, with revenues increasing from $7,394 million to $11,859 million. Growth here appears steadier and less volatile, suggesting a mature and stable market position.
- The Automotive and Embedded Business Unit (AEBU) revenues increased at a slower rate, from $4,139 million to $4,753 million, indicating steady but limited expansion.
- The All Other category revenue fluctuated, showing $11 million initially, increasing to $37 million, then declining to $13 million, suggesting variability or less focus in this segment.
- Total Revenue Analysis
- Total revenues exhibited significant upward momentum, rising from $15,540 million in 2023 to $37,378 million in 2025. This strong overall growth is driven primarily by sharp increases in the CMBU and CDBU segments, supplemented by steady gains in the MCBU and modest growth in the AEBU.
- Segment Contribution Insights
- The data indicates a strategic shift towards cloud memory and data center segments, with these units contributing a growing share of total revenue. Meanwhile, the mobile/client segment maintains a substantial revenue base but with comparatively slower growth. The automotive and embedded segment remains a smaller but stable contributor.
- Overall Observations
- There is a clear pattern of rapid expansion in cloud-related business units coupled with steady growth in traditional areas. This suggests prioritization of emerging technologies while maintaining established revenue streams. Fluctuations in the minor "All Other" category highlight less predictability or investment in ancillary areas.
Operating income (loss)
Micron Technology Inc., operating income (loss) by reportable segment
US$ in millions
| Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | |
|---|---|---|---|---|---|---|
| Cloud Memory Business Unit (CMBU) | ||||||
| Core Data Center Business Unit (CDBU) | ||||||
| Mobile and Client Business Unit (MCBU) | ||||||
| Automotive and Embedded Business Unit (AEBU) | ||||||
| All Other | ||||||
| Unallocated | ||||||
| Total |
Based on: 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03).
- Cloud Memory Business Unit (CMBU)
- The operating income of the Cloud Memory Business Unit displayed a marked increase over the reported periods, beginning with a negative value of -768 million US dollars, transitioning to a positive 244 million US dollars, and culminating at 6,129 million US dollars. This upward trend indicates a substantial recovery and growth in this segment.
- Core Data Center Business Unit (CDBU)
- Operating income in the Core Data Center Business Unit improved consistently, starting with a loss of -563 million US dollars, shifting to a gain of 255 million US dollars, and reaching 2,180 million US dollars. The steady upward trajectory suggests enhanced profitability and operational improvements.
- Mobile and Client Business Unit (MCBU)
- The Mobile and Client Business Unit experienced significant volatility, initially reporting a substantial loss of -3,189 million US dollars, narrowing to a minimal loss of -1 million US dollars, and finally achieving a positive operating income of 1,981 million US dollars. This pattern reflects a strong turnaround and recovery in financial performance.
- Automotive and Embedded Business Unit (AEBU)
- The Automotive and Embedded Business Unit consistently reported positive operating income values, starting from 680 million US dollars and showing some fluctuation to 432 million US dollars, then improving slightly to 557 million US dollars. This segment demonstrates stability and consistent profitability within a narrower range.
- All Other
- The "All Other" category showed minimal and inconsistent operating income amounts, fluctuating from 8 million US dollars to 18 million US dollars, then slightly decreasing to a negative 1 million US dollars. These values indicate limited impact on overall segment performance.
- Unallocated
- The unallocated segment exhibited considerable variation, with a notable loss of -1,913 million US dollars, followed by a positive income of 356 million US dollars, and then a return to a loss of -1,076 million US dollars. This fluctuation suggests the presence of costs or income items not directly assignable to operating segments, contributing volatility to this line.
- Total Operating Income
- The total operating income followed a dramatic positive turnaround, starting with a significant loss of -5,745 million US dollars, progressing to a positive income of 1,304 million US dollars, and substantially increasing to 9,770 million US dollars. This overall improvement is reflective of the substantial recoveries and growth across major operating segments, particularly in the Cloud Memory, Core Data Center, and Mobile and Client Business Units.