Why 2026 Could Be a Banner Year for Stock Splits: Five Candidates to Watch

Understanding the Stock Split Opportunity in 2026

Stock splits remain one of the most anticipated events in equity markets, even as their frequency has declined in recent years. When companies announce a split, their share prices often experience an immediate pop—though this surge tends to be fleeting rather than a sustainable investment signal. Yet this temporary enthusiasm reveals something deeper: companies that reach split-worthy price levels have typically demonstrated strong underlying business performance. A stock’s ascent reflects genuine corporate success, making split candidates inherently interesting from a fundamental perspective.

Several factors are driving potential 2026 splits. Some companies may pursue them to meet Dow Jones index requirements, which operate on price-weighted mechanics rather than market-cap weighting. Others seek to maintain accessibility through reduced per-share costs, particularly when using equity as employee compensation. Fractional shares haven’t fully eliminated the psychological appeal of lower-priced stocks, creating enduring market incentives for action.

Five Companies Positioned for Possible 2026 Splits

Microsoft: The Tech Giant Trading Near $500

Trading around $500 per share, Microsoft sits as the lowest-priced candidate on this list, yet remains elevated for a technology company. The company hasn’t executed a split since 2003—a gap of over two decades that makes one increasingly plausible. Microsoft’s spectacular rally stems from its commanding position in artificial intelligence infrastructure and cloud computing dominance through Azure. As a major OpenAI stakeholder, the company stands to benefit enormously if that investment goes public, potentially creating additional upward momentum. These factors combine to make Microsoft a compelling 2026 watch.

MercadoLibre: The E-Commerce Outlier at $2,000

At approximately $2,000 per share, MercadoLibre commands the highest valuation on this list and represents an unusual case: a company that has never split despite maintaining four-figure pricing for years. This reluctance raises questions about management’s intentions. Yet MercadoLibre’s business fundamentals remain extraordinary—it engineered a Latin American e-commerce ecosystem rivaling Amazon while simultaneously building complementary payment infrastructure. The company endured tepid performance through 2025, suggesting a rebound in 2026 is realistic whether or not a split materializes.

Goldman Sachs: The Dow’s Outsized Influence

At $850 per share, Goldman Sachs represents a unique situation tied to Dow Jones mechanics. Because the index is price-weighted rather than market-cap-weighted, Goldman functions as its largest component, representing roughly 11% of total index weight. This concentrated influence cuts both ways: Goldman might treasure its outsized role, or it might recognize that oversized concentration demands correction through a split.

Caterpillar: The Industrial Bellwether in the Dow

Caterpillar’s $600 share price makes it the Dow’s second-most-influential component, controlling nearly 8% of index weighting. Combined with Goldman and Microsoft, these three stocks account for approximately one-quarter of the entire index’s movement despite representing just 10% of its constituents. This disproportionate concentration suggests potential pressure toward a split to rebalance the index.

Costco Wholesale: The 25-Year Waiting Game

Costco’s current valuation hovers near $900 per share, down slightly from all-time highs but still robust. Its previous split occurred in 2000—a quarter-century ago that qualifies as dramatically overdue by any measure. Notably, Costco doesn’t currently belong to the Dow Jones index, though some market observers believe the company might pursue membership. Should that aspiration materialize, a split would likely become necessary, potentially positioning Costco as 2026’s most probable candidate.

The Investment Angle: Why Tracking Splits Matters

While a one-time stock-split announcement rarely justifies an investment thesis by itself, identifying companies trading at split-eligible prices reveals something about market dynamics. These firms have grown substantially, their stocks have appreciated meaningfully, and their underlying businesses warrant investor enthusiasm. Rather than chasing the temporary spike from a split announcement, forward-thinking investors can acquire these companies now and benefit from both their continued operational excellence and the structural market recognition that a split would represent.