Will Microsoft Announce a Stock Split on Oct. 29?

Core Viewpoint - Microsoft has not announced a stock split in over two decades, and with its current stock price around $500 per share, there is speculation about a potential split announcement on October 29 during its Q1 FY 2026 earnings release [1][7][13]. Company Overview - Microsoft is a member of the Dow Jones Industrial Average, which is price-weighted, necessitating that its stock price remains competitive with peers [2]. - It is the third-largest component in the Dow Jones, following Goldman Sachs and Caterpillar, which may prompt a stock split to maintain its market position [3]. Historical Context - Microsoft has a history of stock splits, having executed nine in total, with the last one occurring in 2003 [5]. - The current management's approach to stock splits is uncertain, making it difficult for investors to predict future actions based on past trends [5]. Financial Performance - In its fiscal fourth quarter, Microsoft reported a revenue increase of 18% year-over-year to $76.4 billion, with diluted earnings per share rising by 24% [8]. - The cloud computing segment, particularly Microsoft Azure, has been a significant growth driver, with Azure revenue growing by 39% in Q4 [9][10]. Market Position - Microsoft's stock has risen over 20% since the beginning of 2025, although this performance lags behind some of its big tech peers [11]. - The stock is currently valued at 33 times forward earnings, which is not the cheapest compared to competitors, placing Microsoft in a challenging position [11][14]. Investor Sentiment - There are high expectations for Microsoft's upcoming earnings report, which could lead to muted market reactions if results meet expectations [13]. - A stock split announcement could potentially boost the stock price, but this outcome is not guaranteed [13].