MU
Micron Technology, Inc.
Technology · Semiconductors · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Micron earned a composite score of 81.3/100 driven by near-perfect growth scores reflecting 48.9% revenue growth and a dramatic surge in net income and EPS in FY2025 [growth.revenue.yoy, growth.net_income.yoy, growth.eps_diluted.yoy].
- Strong profitability metrics—26.1% operating margin, 22.8% net margin, and 10.3% return on assets—alongside accelerating quarterly momentum contributed meaningfully to the high composite [profitability.operating_margin_pct, profitability.net_margin_pct, momentum.revenue_quarterly].
- The consistent dividend history and a very low 6.1% payout ratio supported the Dividend Candidate label and added to the composite score [dividend.dps_trend, dividend.payout_ratio].
Why Not Higher
- The theme factor scored zero despite Micron being assigned to both AI Infrastructure and Semiconductors, which weighed on the composite score [theme.assigned].
- Dividend per share growth has been absent for three consecutive years at $0.46, limiting the dividend factor's contribution relative to what an actively growing dividend might have achieved [dividend.dps_trend].
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from $25,111,000,000 in FY2024 to $37,378,000,000 in FY2025, a gain of +48.9%. Net income surged from $778,000,000 in FY2024 to $8,539,000,000 in FY2025 (+997.6%), while diluted EPS rose from $0.70 in FY2024 to $7.59 in FY2025 (+984.3%).
The model rewarded the near-perfect score because all three growth metrics—revenue, net income, and EPS—showed exceptional year-over-year expansion in FY2025, with earnings metrics nearly tenfold higher than the prior fiscal year.
In FY2025, Micron reported a net margin of 22.8%, an operating margin of 26.1%, and a return on assets of 10.3%.
The model recognized solid profitability across all three metrics, with operating margin exceeding net margin indicating efficient core operations, and a double-digit return on assets reflecting productive use of the company's asset base.
Filing evidence currently available does not support a more specific explanation for this factor.
Revenue accelerated sharply across the last four reported quarters: $11,315,000,000 in 2025Q4, $13,643,000,000 in 2026Q1, $23,860,000,000 in 2026Q2, and $41,456,000,000 in 2026Q3. Net income followed the same trajectory, rising from $3,201,000,000 in 2025Q4 to $28,243,000,000 in 2026Q3, while operating income climbed from $3,654,000,000 in 2025Q4 to $33,318,000,000 in 2026Q3.
The model rewarded a high momentum score because all three quarterly metrics—revenue, net income, and operating income—show a consistent and steep acceleration over the four most recent quarters, with each successive quarter materially exceeding the prior one.
Micron's dividends per share held at $0.46 in FY2023, FY2024, and FY2025, following a prior level of $0.315 in FY2022, and the dividend payout ratio in FY2025 was 6.1%.
The model likely rewarded consistency in dividend payments alongside a very low payout ratio in FY2025, which signals that the dividend is well-covered by earnings and leaves substantial room for future increases or capital reinvestment.
Micron Technology is assigned to the macro themes of AI Infrastructure and Semiconductors.
Although Micron carries two high-profile macro theme assignments, this assignment did not translate into a positive score under the model's current methodology for this factor.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Micron Technology posted exceptional fiscal year 2025 results, with revenue rising from $25.1 billion to $37.4 billion (+48.9%) and net income surging from $778 million to $8.5 billion, while diluted EPS climbed from $0.70 to $7.59 [growth.revenue.yoy, growth.net_income.yoy, growth.eps_diluted.yoy]. Profitability metrics were equally strong, with a 26.1% operating margin, 22.8% net margin, and 10.3% return on assets in FY2025 [profitability.operating_margin_pct, profitability.net_margin_pct, profitability.roa_pct]. Quarterly momentum has accelerated dramatically, with revenue reaching $41.5 billion and operating income reaching $33.3 billion in the most recent reported quarter [momentum.revenue_quarterly, momentum.operating_income_quarterly]. The company maintains a consistent dividend with a very low 6.1% payout ratio, signaling ample coverage and room for future increases [dividend.payout_ratio, dividend.dps_trend].
Plain English
Micron is a semiconductor company that nearly doubled its revenue in one year and saw its profits jump dramatically, while continuing to pay a steady dividend that uses only a tiny slice of its earnings [growth.revenue.yoy, growth.net_income.yoy, dividend.payout_ratio].
Bull Case vs. Bear Case
Bull Case
- Revenue and earnings growth in FY2025 were exceptional, with revenue up 48.9% and net income rising from $778 million to $8.5 billion year-over-year, reflecting a powerful business inflection [growth.revenue.yoy, growth.net_income.yoy].
- Quarterly momentum is accelerating steeply, with revenue growing from $11.3 billion in 2025Q4 to $41.5 billion in 2026Q3 and operating income climbing from $3.7 billion to $33.3 billion over the same span [momentum.revenue_quarterly, momentum.operating_income_quarterly].
- The dividend payout ratio of just 6.1% in FY2025, against a consistent per-share dividend history, suggests the dividend is well-covered and leaves substantial capacity for future increases or reinvestment [dividend.payout_ratio, dividend.dps_trend].
Bear Case
- The macro theme assignments to AI Infrastructure and Semiconductors did not translate into a positive score under the model's current theme factor methodology, indicating that thematic tailwinds alone are not sufficient to drive the composite higher [theme.assigned].
- Dividends per share have been flat at $0.46 for three consecutive fiscal years (FY2023–FY2025), suggesting limited dividend growth despite the strong earnings backdrop [dividend.dps_trend].
- The theme factor scored zero in the composite, which weighed on the overall rating despite strong performance across growth, profitability, and momentum dimensions [theme.assigned, growth.revenue.yoy].
What Could Change the Picture
Bullish Triggers
- If the model's theme factor methodology is updated to reward AI Infrastructure and Semiconductor assignments, Micron's composite score could improve materially given its existing strong fundamentals [theme.assigned].
- A dividend per share increase beyond the current $0.46 level would reinforce the Dividend Candidate label and could attract additional income-oriented investors, given the very low 6.1% payout ratio leaving ample room [dividend.dps_trend, dividend.payout_ratio].
Bearish Triggers
- A reversal in the steep quarterly revenue and earnings trajectory—which has seen revenue grow from $11.3 billion to $41.5 billion across four quarters—would significantly undermine the momentum score and overall thesis [momentum.revenue_quarterly].
- If operating margins were to compress from the current 26.1% level, the profitability factor that currently supports the composite could weaken considerably [profitability.operating_margin_pct].
Risk Profile
Low RiskMicron's risk rating is Low, supported by a large asset base of $82.8 billion in FY2025 and a quarterly momentum profile showing consistent and steep acceleration in revenue, net income, and operating income across the four most recent quarters [financial_health.total_assets, momentum.revenue_quarterly, momentum.net_income_quarterly, momentum.operating_income_quarterly].
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.