Why These 5 Companies Could Execute Stock Splits in 2026

The Strategic Reasoning Behind Stock Splits

Stock splits have long been a favored corporate action, though they’ve become less frequent in recent years due to the availability of fractional shares across most brokerages. Nevertheless, companies continue to pursue splits for several compelling reasons: they enable lower share prices for employee stock options, can improve index inclusion prospects, and often generate positive market sentiment. While this enthusiasm typically produces only a short-term price bump, the companies that face split considerations are usually those whose underlying fundamentals have driven valuations higher—making them worthy of investor attention.

The threshold that triggers split conversations often correlates with index participation, particularly for the price-weighted Dow Jones Industrial Average, where a single stock’s contribution to the index depends on its share price rather than market capitalization. As we head into 2026, several large-cap stocks are trading at elevated price levels and could become candidates for splits.

Microsoft: Overdue After Two Decades

Microsoft (NASDAQ: MSFT) remains the most undervalued candidate on this list at approximately $500 per share, yet it hasn’t executed a stock split since 2003—over two decades ago. The technology giant has benefited tremendously from its central positioning in artificial intelligence infrastructure, supplying critical computing resources through its cloud services while maintaining a significant stake in OpenAI. Should OpenAI pursue an IPO, Microsoft’s unrealized gains could drive further appreciation, creating additional momentum for a potential split announcement and making it an attractive holding regardless of whether a split materializes.

MercadoLibre: The Highest-Priced Contender

At approximately $2,000 per share, MercadoLibre (NASDAQ: MELI) represents the priciest stock under consideration, yet it has never undertaken a split despite trading above the $1,000 threshold for an extended period. While management’s historical reluctance suggests skepticism about a near-term split, strategic priorities can shift. Beyond split speculation, MercadoLibre remains an exceptional operator—having constructed a Latin American e-commerce ecosystem rivaling established competitors while simultaneously building proprietary payment infrastructure. The company experienced relative underperformance in 2025, positioning it potentially for a meaningful rebound regardless of corporate action timing.

The Dow Jones Effect: Goldman Sachs and Caterpillar

The situation becomes more nuanced when examining Dow Jones constituents. Goldman Sachs (NYSE: GS), trading near $850, represents approximately 11% of the price-weighted index due to its elevated share price, making it the index’s largest component. Similarly, Caterpillar (NYSE: CAT) at roughly $600 per share comprises nearly 8% of the Dow’s composition as its second-largest holding.

Together with Microsoft, these three companies account for approximately 25% of the Dow’s total weighting despite representing just 10% of its constituent companies. This concentration presents a strategic dilemma: management teams may view outsized index influence as either desirable (resisting splits) or problematic (necessitating splits to achieve more normalized positioning). Given current valuations, pressure to rebalance through splits could emerge sooner than later.

Costco: Seeking Index Entry

Costco Wholesale (NASDAQ: COST), valued at approximately $900 per share, hasn’t split since 2000—a quarter-century interval. Though not currently a Dow Jones member, Costco may harbor aspirations toward inclusion. Price-weighted indices require price-appropriate components, suggesting that a split could function as a pathway to Dow consideration. This dynamic positions Costco as a strong candidate for a split announcement during 2026.

The Investment Takeaway

Stock splits themselves don’t create investment value, but they signal that underlying companies have succeeded in building valuable enterprises. For investors seeking exposure to quality businesses trading at elevated price points, monitoring split expectations across these five candidates offers a lens into which firms may deliver significant returns in 2026 and beyond.