Micron Raises Share Buyback Authorization to $35.16 Billion Starting in December
Key Facts
Micron approved on October 8 an increase in its total discretionary share buyback authorization to $35.16 billion, with any purchases under it set to begin on December 9, 2026, according to its annual report filed with the U.S. Securities and Exchange Commission. The decision sets a ceiling for repurchases and does not mean the company will spend the full amount or do so immediately. Chief Financial Officer Mark Murphy said the company intends to increase capital returns to shareholders starting on December 9, the second anniversary of the signing of its definitive agreements under the CHIPS Act. He added that Micron expects, over time, to return 100% of its excess cash to shareholders. The date comes as the stock closed at $856.845 on November 2, after closing at $884.74 on October 30 and $934.27 on October 29, according to EL7 data.
The new authorization raises the ceiling approved by the board in 2018, which allowed the repurchase of up to $10 billion worth of shares. Micron says the program is discretionary, does not require it to buy any shares, and has no expiration date. Cumulative repurchases since the program began in 2019 totaled about $7.84 billion through September 3, 2026. But the annual spending record shows that the ceiling does not necessarily reflect the amounts the company will use: spending since the program began ranged from no purchases to a peak of $2.66 billion in a single year. The company said it repurchased $650 million worth of shares in 2026, after making no purchases in 2025.
The start of purchases in December is tied to the terms of direct funding agreements for Micron projects in Idaho and New York, which were awarded on December 9, 2024. The agreements allow share repurchases during the first two years of a five-year period, within specified amounts to offset the dilutive impact of employee shares or as permitted by the Commerce Department. The U.S. Commerce Department awarded the company up to $6.165 billion in direct funding for the projects, as part of its plan to invest in memory manufacturing in the United States. After the first two years, restrictions tied to the agreements do not disappear: purchases during the final three years are subject to financial and other conditions. Those conditions include limits tied to free cash flow after deducting capital expenditure-related funding incentives and dividends.
The increase in the authorization was based on an adjusted free cash flow calculation for the quarter ended September 3, 2026. Adjusted free cash flow was $33.199 billion, according to the table Micron included in its report. After deducting $174 million in dividends paid during the quarter, the basis for the increase in the authorization was $33.025 billion. This calculation shows the financial basis the company used to expand the authorized amount, while the ceiling remains a discretionary authorization rather than a commitment to buy shares. In the context of cash flows, Micron announced on September 30 a quarterly cash dividend of $0.15 per share, payable on October 29 to shareholders of record on October 14.
The expanded authorization coincided with a surge in the company's revenue in the fourth quarter of its 2026 fiscal year. Revenue was $54.23 billion, compared with $11.32 billion in the same period a year earlier and $41.46 billion in the third quarter of 2026, according to the financial results release. This performance provides financial context for the announcement of increased capital returns, but does not change the program's discretionary nature or the conditions governing its execution. The company said the amount and frequency of repurchases may change, and that it does not guarantee it will buy all the authorized shares or enhance shareholder value over the long term. It also warned that purchases could reduce its cash reserves and increase share-price volatility.