Outline:
Key Points
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Stock splits typically result in a larger number of shares for you.
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However, the overall value of your ownership in the company will remain relatively stable.
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There are more significant factors to consider than stock splits while searching for stocks.
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These 10 equities may create the next generation of millionaires ›
Who doesn’t enjoy a stock split? Suddenly, without any action from you, you end up with more shares of a particular stock. It seems appealing — and potentially profitable — but stock splits are not always as beneficial as they appear.
I’ll clarify the reasons and present some potential examples of the largest stock splits in 2026.
Stock splits 101
A typical stock split will raise the quantity of shares you possess —while reducing the value of each share, in proportion. The final part in italics is significant, as it clarifies why stock splits shouldn’t cause much excitement.
A typical stock split is the 2-for-1 variety, in which you receive two shares for every one you held before the split, and the stock price is reduced by half. The 3-for-1 split is also quite prevalent, and various other types of splits occur as well, including 4-for-1, 7-for-1, 10-for-1, and more.
Suppose you have 10 shares of theHome Surgery Kits Co.(ticker: OUCHH). Suppose that before the split, the stock is trading at $300 per share. Therefore, the total value of your shares is $3,000. Now let’s consider a 2-for-1 split. After the split, you will have two shares for every one you owned, resulting in 20 shares. However, the price per share will be approximately half of the original amount — around $150 per share. Multiply your 20 shares by the $150 price and you’ll end up with a total value of… $3,000.
Stock splitsare primarily an accounting action, and for most investors, it’s insignificant. Businesses often split their stock when the share price becomes too high for many investors, along with other factors.
(Note, too, that reverse splitsalso exist. For instance, a 1-for-10 split would convert your 10 shares into a single share, increasing its value by ten times. This strategy is often used by companies facing difficulties to boost their stock price.
Stock-split candidates for 2026
We aren’t able to precisely determine which stocks will split in the upcoming months or year until the companies officially announce these events. However, wecan guess. Here are some stocks that appear to be strong possibilities for stock splits:
|
Stock |
Recent share price |
|---|---|
|
Booking Holdings |
$5,427 |
|
Autozone |
$3,399 |
|
Eli Lilly |
$1,080 |
|
ASML Holding |
$1,072 |
|
Costco Wholesale |
$866 |
|
AppLovin |
$694 |
|
Intuit |
$670 |
|
Meta Platforms |
$666 |
|
Ulta Beauty |
$607 |
|
Microsoft |
$487 |
|
Tesla |
$454 |
|
Broadcom |
$350 |
|
Coinbase Global |
$232 |
I am unable to accurately forecast which splits will occur, but I anticipate that one or more of these companies may carry out a stock split in the next year.
Also, keep in mind that even if a company appears to be in urgent need of a stock split, it might still not occur. For instance, Booking Holdings has a high stock price, but this has been the case for the past year and the year before, and the company did not carry out a stock split. In fact, it has never performed a standard stock split – although it did conduct a 1-for-6 reverse split in 2003.
More significant than stock divisions
As you search for exciting companies to add to your long-term investment portfolio, I recommend ignoring stock splits entirely — as there are much more significant aspects to evaluate. For instance:
- Is the company expanding, regarding sales and net profit?
- Is it reporting profits rather than losses?
- Is there minimal or manageable debt, or could the debt level become a problem?
- Does it have robust profit margins, and ideally are they increasing?
- Does it have sustainable competitive advantagessuch as cost advantages or a strong brand?
- How does it measure up against its competitors and counterparts?
- Is is its stock price reasonable or appealingIt can be dangerous to invest in an excellent stock if it’s priced too high.
Therefore, don’t focus excessively on stock splits. However, if one of your investments undergoes a split, feel free to appreciate having more shares, while recognizing that their overall value is likely to remain the same, or nearly so.
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*Stock Advisor performance as of January 3, 2026.
Selena Maranjianholds shares in ASML, Broadcom, Costco Wholesale, Meta Platforms, and Microsoft. The Motley Fool holds positions in and advises on ASML, Booking Holdings, Costco Wholesale, Intuit, Meta Platforms, Microsoft, Tesla, and Ulta Beauty. The Motley Fool recommends Broadcom and Coinbase Global and suggests the following options: buying January 2026 $395 call options on Microsoft and selling January 2026 $405 call options on Microsoft. The Motley Fool has adisclosure policy.