Micron board raises buyback ceiling to $35.16bn

Investing.com -- Micron Technology (NASDAQ: MU) disclosed in its 10-K filing on Friday that its board authorized an increase in its discretionary share repurchases to $35.16 billion, the largest buyback ceiling in the company's history, though investors will have to wait until December 9, 2026, for the program to kick in.

The buyback news could boost the red-hot stock, which has surged more than 270% year-to-date, driven by an AI-fueled memory supercycle, yet sits about 18% below its 52-week high of $1,255 set on June 25.

The December 9 start date is not arbitrary. Restrictions in Micron's CHIPS Act direct-funding agreements prohibit share repurchases until then.

The authorization lands on the back of a historically profitable year. Micron reported record fiscal Q4 2026 revenue of $54.23 billion, up 379% year-over-year, with non-GAAP EPS of $33.42 and a non-GAAP gross margin of 87%, all above consensus. Full fiscal 2026 revenue reached $133.19 billion, up from $37.38 billion a year earlier, and GAAP net income hit $84.97 billion.

Despite that cash generation, actual repurchase activity in fiscal 2026 was modest. Micron spent only $650 million buying back 2.5 million shares across the entire year. That restrained pace reflects both the CHIPS Act prohibition and management's stated intention to scale capital returns once the December 9 window opens. The company gave no specific fiscal 2027 dollar target for repurchases, leaving investors to judge execution against a program with no expiration date and no deployment requirement.

Rosenblatt analyst Kevin Cassidy expects the company to keep raising the pace of share repurchases as free cash flow balloons. "We expect that through FY27 as quarterly FCF is realized, the Board will continue to increase this repurchase authorization," Cassidy said. The analyst has a Buy rating and a $1,900 price target on Micron.

Last week, DA Davidson analyst Gil Luria lifted his price target on the stock to a "Street High" $3,000 from $2,100, saying he expects the Street to continue to reward the stock with a higher multiple as it better understands the company's value.

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