Microsoft Stock Split Rumors Spark Debate Over Share Price

Microsoft has not split its stock in over 23 years, since a 2-for-1 split took effect in February 2003. The company's board of directors rarely lets the share price go above $50 before splitting it again. However, Microsoft's current share price of around $518 is significantly higher than that.

The Dow Jones Industrial Average is price-weighted, meaning a stock's influence on the index depends on its share price, not its market value. As a result, Microsoft has one of the largest weights in the index at around 6%. A split would lower this weight, but a large split like Nvidia's 10-for-1 might send Microsoft's weight to near the bottom of the index.

Microsoft's fiscal 2026 revenue grew 18% to $331.8 billion, and non-GAAP earnings per share rose 22% to $17.28. The company's peers, such as Nvidia and Broadcom, have split their shares recently, but their prices were much higher than Microsoft's when they did so.

While a split might make Microsoft's stock more accessible to employees, it's unlikely that the board will announce one soon. The share price has traded above every previous split price for most of the past six years, and $518 is modest compared to where Nvidia, Broadcom, and Netflix split.