For its fiscal third quarter earnings report, Micron technology (NASDAQ: MU) announced monster results. Earnings per share (EPS) of $25.11 and revenue of $41.5 billion easily topped Bloomberg analyst consensus EPS estimates of $20.39 and revenue estimates of $35.1 billion.
For its upcoming fiscal fourth quarter, the memory chip maker expects revenue to fall in the range of $49 billion to $51 billion. That would beat analysts’ consensus estimates of $43.2 billion.
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Those results gave the stock price an immediate post-earnings boost, pushing it above $1,000 per share. This may make some wonder if a stock split is now more likely in the company’s foreseeable future.
The benefits of a stock split
There is a perception that stock splits have benefits, but that can be separated between what is more concrete and what is investor psychology. There is evidence that stock splits can help drive up prices, according to data published by Statista obtained from bank of americaResearch Investment Committee.
The committee found that over four decades, companies that split their shares earned an average total return of 25.4% in the year following the split announcement.
However, that’s just an average, so there’s nothing to suggest Micron’s share price performance would follow a similar path. As of June 24, Micron’s stock price was already up more than 260% so far this year, so an announcement of a stock split may not offer the same kind of boost it could offer to other companies’ stock prices.
Moving on to investor psychology, some shareholders like to see stock splits because they can make the stock look more affordable and attract new investors. For example, although buying 10 shares of a $100 stock is the same as buying one share of a $1,000 stock, that $100 price seems more affordable.
Will Micron split its shares in 2026?
In the case of a stock split, it is up to Micron management whether it will happen or not. The company has split its stock in the past, but its last split was in 2000. That history offers little indication of what might happen in 2026.
Additionally, due to the increase in fractional investing, the management team may feel less need to split their shares. If an investor wanted to buy $50, $100, or $200 worth of Micron stock, they could do so now.
