Microsoft Stock Tops All Pre-Split Prices Amid Strong Cloud Growth

Microsoft's stock price has soared to $518, nearly three times its highest pre-split price of $178 in 1999. The company has not split its stock in 23 years, the longest gap in its history, while peers like Nvidia, Broadcom, and Netflix have executed splits at much higher nominal prices.

Fiscal year 2026 saw Microsoft's revenue reach $331.8 billion, up 18%, with adjusted earnings per share (EPS) at $17.28, a 22% increase. Azure, its cloud division, surpassed $100 billion in annual revenue for the first time, driving significant growth. The board has prioritized fundamentals over splitting, as the stock's value has climbed from $25 post-2003 split to its current level.

Operating income grew 21% to $155.2 billion, with a 67.94% gross margin, reflecting strong financial performance. Microsoft's capital expenditures reached $115.9 billion, funding data center expansions and AI infrastructure. The company's significant weight in the Dow Jones Industrial Average adds another layer to the split decision.

Fractional share trading has reduced the need for splits to improve retail accessibility. While peers opted for 10-for-one splits, any potential Microsoft split is expected to be more modest, likely a two-for-one ratio, resulting in a post-split price of around $259.