Micron’s $73 Billion Cash Mountain Is About To Move — CFO Signals Bigger Buybacks: ‘We Have the Ability And the Intent…’

Benzinga Earnings
4小時前

Micron Technology Inc. (NASDAQ:MU) ended its fiscal year 2026 with $73.48 billion in cash and investments. The company plans to expand its capital return program starting in December, according to Chief Financial Officer Mark Murphy.

The December 9 Catalyst

During the company’s fiscal fourth-quarter earnings call on Wednesday, Murphy outlined a specific timeline for utilizing the semiconductor manufacturer’s cash reserves. The targeted date aligns with regulatory milestones connected to government funding.

“We have the ability and the intent to increase our capital return and you can expect us to seek to increase our authorization and commence stronger capital return from December 9th in accordance with the agreements we have on CHIPS,” Murphy said.

The Dec. 9, 2026, date marks the second anniversary of Micron signing its definitive CHIPS Act agreements. Micron generated $33.20 billion in adjusted free cash flow in the fourth quarter alone. Murphy said during the earnings call that the company closed the fiscal year with a net cash balance of $68.3 billion after accounting for $5.2 billion in outstanding debt.

Read Also: MU Stock Is ‘Absolutely in a Bubble,’ But Bulls Can Still Make Money, Says Analyst: ‘Best Cycle Anyone’ Has Ever Seen

Returning Excess Cash

The company’s current share repurchase authorization stands at $2.2 billion. Murphy told investors on the call that management will seek approval to increase that limit in the near term.

“Over time, we expect to return 100% of our excess cash to shareholders,” Murphy said, specifying that this action will be “primarily done through share repurchase.”

Fueling the Cash Pile

The cash accumulation follows a record fiscal 2026, which saw total revenue surge 256% year-over-year to $133.2 billion. Fourth-quarter revenue reached $54.23 billion, surpassing analyst estimates of $50.75 billion.

The company attributes its financial performance to the growing demand for memory and storage components required for artificial intelligence applications. To date, Micron has secured 26 multi-year strategic customer agreements.

These contracts currently cover over 35% of the company’s projected revenue through 2030 and include $32 billion in financial commitments, the vast majority of which are cash deposits.

How Has MU Performed in 2026?

Price Action: At the last check, the MU stock was trading 1.21% higher in overnight trading. It is up 536.57% over the last year, 273.19% year-to-date, and 14.18% over the last month. The stock closed 0.01% higher at $1,065.11 on Wednesday.

Benzinga’s Edge Stock Rankings indicate that MU maintains a strong price trend in the short, medium, and long terms, with a poor value score.

Read Also: Micron Says Humanoid Robots Could Be Next Big Memory Driver, Analyst Sees 'Millions Of Machines' With Server-Level Chips

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Shutterstock

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