Micron raises share buyback authorization to $35.16 billion after strong results
Key Facts
Micron raised its total share repurchase authorization to $35.16 billion in a board decision on October 8, 2026, according to its annual report filed with the U.S. Securities and Exchange Commission. The expansion of the existing program followed the announcement of its fiscal fourth-quarter 2026 results on September 30. Quarterly revenue reached $54.23 billion, according to the earnings release, compared with $41.46 billion in the previous quarter. Revenue was $11.32 billion in the corresponding quarter of the previous fiscal year. The company posted quarterly net income under U.S. GAAP of $37.70 billion. Full-year revenue rose to $133.19 billion from $37.38 billion the previous year.
Micron's management attributed the improvement in gross margin primarily to "higher pricing and strong execution," according to its prepared remarks accompanying the results. It said product mix partially offset those factors supporting profitability. U.S. GAAP gross margin was 86.8% in the fiscal fourth quarter. Adjusted gross margin was 87.0%, according to the company's financial presentation. Micron generated adjusted free cash flow of $33.20 billion in the same quarter. It ended the fiscal year with total cash, marketable investments and restricted cash of $73.48 billion, according to the earnings release.
On contracts, management said it had signed 26 strategic customer agreements as of the September earnings announcement. These multiyear agreements require customers to purchase or pay, supporting supply planning and performance predictability, according to management's remarks. Remaining performance obligations under the relevant contracts totaled about $150 billion. These obligations include contracts with a defined pricing framework and are calculated using committed volumes and minimum prices. Customers' financial commitments under the agreements rose to $32 billion, consisting mostly of cash deposits, according to management.
Execution of the share repurchase program is subject to market conditions, restrictions under direct funding agreements tied to the CHIPS Act and priorities for cash use, according to the annual report. The authorization has no expiration date, leaving the timing of execution dependent on those conditions and priorities. It also does not obligate the company to purchase any of its common stock. The board's decision expands purchasing authority under the existing program, rather than announcing completed purchases totaling the authorized amount. Micron shares ended the October 20 session down 0.98%, according to Google Finance data.
For the first quarter of fiscal 2027, Micron forecast revenue of $61.5 billion, plus or minus $1.5 billion, according to its financial presentation. The company expects adjusted diluted earnings per share of $38.15, plus or minus $1.00 per share. It also expects an adjusted gross margin of about 86.25% for the same period. Management described the fiscal first quarter as the "lowest level of gross margins" it expects during the fiscal year. It linked that outlook to the impact of manufacturing reimbursements reflected in inventory, according to its prepared remarks accompanying the earnings announcement.
The company plans capital expenditure of about $11.5 billion in the first quarter of fiscal 2027, according to management. Expected capital expenditure for the first half of the fiscal year totals about $25 billion. These estimates are net of expected government incentives included in the company's spending plan calculations. On shareholder returns, a cash dividend of $0.15 per share is payable on October 29, 2026, according to the annual report. Purchases under the expanded share repurchase authorization begin on December 9, 2026, under the direct funding agreements tied to the CHIPS Act.