Investing.com — Micron Technology (NASDAQ:MU) revealed in its 10-K filing Friday that its board of directors has authorized an increase in its discretionary stock repurchases to $35.16 billion, the highest repurchase cap in the company’s history, although investors will have to wait until Dec. 9, 2026, for the program to take effect.
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The buyout news could boost the stock, which has surged more than 270% year to date, thanks to an AI-powered memory supercycle, but is nonetheless 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 stock repurchases until then.
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The authorization comes after a historically profitable year. Micron reported record fourth-quarter 2026 revenue of $54.23 billion, up 379% year-over-year, with non-GAAP EPS of $33.42 and non-GAAP gross margin of 87%, all above consensus. Total revenue for fiscal 2026 reached $133.19 billion, up from $37.38 billion a year earlier, and GAAP net income reached $84.97 billion.
Despite this cash generation, actual repurchase activity in fiscal 2026 has been modest. Micron spent just $650 million to repurchase 2.5 million shares over the entire year. This moderate pace reflects both the CHIPS Act ban and management’s stated intention to increase capital returns once the December 9 window opens. The company gave no specific dollar targets for buybacks for fiscal 2027, leaving investors to judge execution against a program with no expiration date or rollout requirements.
Rosenblatt analyst Kevin Cassidy expects the company to continue to accelerate the pace of share repurchases as free cash flow increases. “We anticipate that in FY27, as the quarterly FCF is completed, 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 raised his price target on the stock from $2,100 to $3,000, saying he expects the Street to continue rewarding the stock with a higher multiple as it better understands the company’s value.
Original article
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