Will the Micron Stock Split Happen Now After Its Blowout Earnings Results?

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 beat Bloomberg analyst consensus EPS estimates of $20.39 and revenue estimates of $35.1 billion.

For its upcoming fiscal fourth quarter, the memory chipmaker expects revenue to fall in the range of $49 billion to $51 billion. That would beat analysts' consensus estimates of $43.2 billion.

Those results gave the stock price an immediate boost after earnings, pushing it above $1,000 per share. That may leave some wondering whether a stock split is now more likely in the company's foreseeable future.

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The benefits of a stock split

There's a perception that stock splits have benefits, but that can be separated between what's more concrete and what's investor psychology. There is evidence that stock splits can help push prices higher, according to data published by Statista sourced from Bank of America's Research Investment Committee.

The committee found that, for four decades, companies that split their stock saw an average total return of 25.4% in the year following the announcement of the split.

That is just an average, however, so there's nothing that suggests Micron's stock price performance would follow a similar path. As of June 24, the Micron stock price is already up more than 260% on the year, so an announcement of a stock split may not offer the same kind of boost it could for other companies' stock prices.

Moving to investor psychology, some shareholders like seeing stock splits because they can make shares seem more affordable and attract new investors. For instance, even though buying 10 shares of a $100 stock is the same as buying one share of a $1,000 stock, that $100 price point sounds more affordable.

Will Micron split its stock in 2026?

For a stock split, it is up to Micron's management whether one will happen. 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.

Also, because of the rise in fractional investing, the management team may feel less need to split its stock. If an investor wanted to buy $50, $100, or $200 worth of Micron stock, they could already do so.

While investors can't control whether Micron will split its stock, they can decide whether to consider it a worthy long-term investment.

Bank of America is an advertising partner of Motley Fool Money. Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.