JHVEPhoto
Micron Technology (NASDAQ:MU) recently filed its 10-Q for its fiscal third-quarter, and Wells Fargo pointed out that one customer accounted for a significant portion of its revenue.
“MU’s 10-Q discloses that it had one 10%+ customer during the 9-mos ending F3Q25—accounting for 16% of cumulative [9-month ended May revenue],” analyst Aaron Rakers wrote in a note to clients. “This compares to a disclosed ~15% customer for 1HFY25. Assuming this is the same customer, this would imply ~$1.7 billion in F3Q25 revenue, vs. our estimate of ~$1.1B and ~ $1.4B in F1Q25 and F2Q25.”
The filing adds that the unnamed customer is primarily included in Micron’s Compute and Networking Business Unit. This implies that the customer accounts for roughly 25% to 30% of Micron’s Compute and Networking Business Unit revenue, Rakers added.
Other notable takeaways from the 10-Q include a decline in customer prepays, as contract liabilities from customer prepayments fell to around $146M at the end of the quarter, compared to $614M and $555M in the first and second quarters; and the receipt of $266M in government incentives to offset capex, compared to $963M in the first quarter of fiscal 2025 and $33M in the year-ago quarter.
“The company’s liabilities include a $603M balance in non-current unearned [government] incentives vs. $836M in the prior [quarter],” Rakers added.