Microsoft shares were trading near $518. This is less than 5% below its record closing price of $542, which it reached in October last year.
Microsoft has split its stock nine times in the past. The company first went public in March 1986. Since then, it has split its shares nine times during its first 17 years as a publicly traded company, according to The Motley Fool.
Microsoft stock split history
One original Microsoft share has grown into 288 shares. An investor who bought one share during Microsoft’s initial public offering (IPO) in March 1986 would now own 288 shares because of the company’s past stock splits.
Microsoft’s last stock split happened in 2003. The company carried out its ninth split in February 2003. It was a 2-for-1 split, which meant shareholders received two shares for every one share they owned.
Microsoft’s share price has increased sharply since its last split. After the February 2003 split, the stock traded at around $25. It has since climbed above $500. However, the company has not announced any plan for a 10th stock split, and the decision rests with its board, according to The Motley Fool.
Why Microsoft has not split its stock
Microsoft used to split its shares when the price reached much lower levels. The company carried out its first eight stock splits between 1987 and 1999. Before each of these splits took effect, the stock’s closing price was between approximately $98 and $178.
The 2003 split was different from the earlier ones. Before its ninth split, Microsoft’s stock was trading at around $48. The share price then took more than 12 years to close above $50 again, finally doing so in October 2015.
Microsoft’s stock crossed important price levels in later years. The shares first closed above $100 in June 2018. In February 2020, they crossed $178, the highest price at which Microsoft had previously carried out a stock split in the 1990s.
Microsoft has traded above its earlier split prices for years. For most of the past six years, the stock has traded above every price level at which the company previously decided to split its shares. Its current price of around $518 is nearly three times the previous high of $178, according to The Motley Fool.
This raises questions about why Microsoft has not announced another split. Based on the company’s earlier pattern, The Motley Fool argues that Microsoft might have split its stock years ago if the board were still following the same approach it used in the 1980s and 1990s.
Also read: US 10-year Treasury yield hits 5.34%, highest since 2002: Why are yields rising?
Microsoft revenue and earnings growth
Microsoft’s growing business has also supported its share price. The company’s revenue increased 18% to $331.8 billion in fiscal 2026, which ended on June 30. This was faster than its revenue growth of 15% in fiscal 2025 and 16% in fiscal 2024.
Microsoft also reported strong adjusted earnings growth. Its adjusted earnings per share increased 22% to $17.28 in fiscal 2026. This growth shows that the company has continued to expand its earnings alongside its rising stock price.
Nvidia, Broadcom and Netflix stock splits
Other major technology companies have split their shares recently. Nvidia announced a 10-for-1 stock split in May 2024. Broadcom announced a 10-for-1 split in June 2024, while Netflix announced a stock split in October 2025, according to The Motley Fool.
These companies had much higher share prices when they announced their splits. Nvidia closed at around $950 on the day it announced its split. Netflix’s share price was approximately $1,090, while Broadcom’s was around $1,500.
Making shares more accessible to employees was one reason for these splits. Nvidia, Broadcom and Netflix said that making their shares more accessible to employees was at least one of the reasons behind their stock splits.
Microsoft’s share price is lower than those of its peers when they announced their splits. At around $518, Microsoft’s stock is a little more than half of Nvidia’s share price at the time of its split announcement and about one-third of Broadcom’s price. This suggests that Microsoft’s shares may not be expensive enough on a per-share basis to make another split necessary, according to The Motley Fool.
Also read: Elon Musk backs SpaceXSI rebrand as Trump pushes ‘SI’ over ‘AI’: What it means for Grok
Can investors buy Microsoft fractional shares?
Investors can buy fractional shares without purchasing a full share. A stock split can make individual shares cheaper, but investors do not always need to buy a whole share. For example, Fidelity allows investors to purchase fractional shares of stocks listed on the Nasdaq and New York Stock Exchange for as little as $1, according to The Motley Fool.
How a stock split could affect the Dow
A stock split could affect Microsoft’s position in the Dow Jones Industrial Average. The Dow Jones Industrial Average is a price-weighted index. This means a company’s influence on the index depends on its share price rather than its total market value.
Microsoft currently has one of the biggest weights in the Dow. The stock accounts for approximately 6% of the Dow Jones Industrial Average, making it the index’s third-largest component by weight after Goldman Sachs and Caterpillar.
A 2-for-1 split would reduce Microsoft’s Dow weight. If Microsoft repeated its previous 2-for-1 split, its share price would be cut in half, while existing shareholders would receive twice as many shares. Its weight in the Dow would fall from approximately 6% to 3%, according to The Motley Fool.
A 10-for-1 split would have a much bigger effect. If Microsoft carried out a 10-for-1 split similar to Nvidia’s, its share price would fall from around $518 to approximately $52, while shareholders would receive 10 shares for every one share they owned. Its weight in the Dow would drop to around 0.6%.
A 10-for-1 split could leave Microsoft near the bottom of the Dow by price. At around $52 per share after such a split, Microsoft would have a lower share price than almost every other Dow component, with only Nike trading lower, based on The Motley Fool’s calculation.
The Dow has previously raised concerns about stocks with very low share prices. Verizon Communications accounted for approximately 0.5% of the Dow when it was removed from the index in June. S&P Dow Jones Indices, which manages the index, said in its announcement that stocks with persistently low prices have an immaterial effect on the Dow.
Will Microsoft announce a 10th stock split?
Microsoft’s 10th stock split may not happen anytime soon. The Motley Fool argues that a split is unlikely to be announced soon because Microsoft has traded above its previous split price levels for years, while its current share price remains relatively low compared with those of Nvidia, Broadcom and Netflix when they announced their splits.
If Microsoft splits its shares again, a smaller split may be more likely. The Motley Fool expects that a 2-for-1 split, similar to Microsoft’s previous splits, would be more likely than a 10-for-1 split if the company eventually decides to take this step.
Would a Microsoft stock split make shares more valuable?
A stock split would not change the actual value of Microsoft’s business. A split increases the number of shares and reduces the price of each share proportionately. It does not, by itself, increase the company’s total market value or change an investor’s overall ownership value.
Microsoft’s valuation remains an important factor for investors. The article estimates that Microsoft stock is trading at around 30 times its adjusted earnings. The Motley Fool considers this valuation reasonable for a company that increased adjusted earnings per share by 22% in fiscal 2026.
The key takeaway is that investors should not expect a split simply because Microsoft’s stock is above $500. The company has no announced plan for a 10th split, and its board must decide whether one is necessary. Even if a split happens in the future, it would change the number and price of shares, not the underlying value of Microsoft’s business.