With Costco Trading Under $1,000, Is a Stock Split Still on the Table for 2026?

The share price for Costco Wholesale (NASDAQ: COST) dropped below $1,000 on May 28 and hasn't returned to that level since. Still, at roughly $950 per share as of this writing, investors may be wondering if a stock split will still happen in 2026.

The stock doesn't need to climb back to $1,000 to split, so even if shares trade around these current levels or even lower, one could still happen. But the potential of a split alone shouldn't be the only reason to consider investing in the retailer.

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Why shareholders like to see stock splits

When a stock reaches a certain price, it may seem too high to attract retail investors. Without them, demand could lessen, theoretically weighing on the share price.

For instance, if a stock is trading at $1,000 and a company conducts a 5-for-1 split, the stock will trade at $200 after the split. Psychologically, that may seem like a more favorable price to start or add to a position than paying $1,000 or more.

And research has found that split announcements can boost stock prices. According to data published by Statista sourced from Bank of America's Research Investment Committee, for four decades, companies that split their stock saw an average total return of more than 25% in the 12 months following the announcement of the split. The committee found that it was more than twice the average return of the S&P 500 during the same time frame researched.

Does history offer a clue about a Costco stock split?

History doesn't offer much of an answer on whether Costco would split its stock at its current price; the last one was in 2000, with a two-for-one split. What that does tell us, however, is that the company doesn't take splitting its stock lightly.

Also, with many online brokers offering fractional investing, management may not see the need to split the stock. On Robinhood Markets, for instance, fractional investing allows users to invest as little as $1 in companies, though some restrictions apply.

What to focus on instead of a split

There's no way to know whether or when a Costco stock split will happen before an official announcement. And even if one does happen, nothing guarantees the price will see a short-term boost. Instead, what's more valuable to focus on for the long term is the strength of the company's business model.

In the case of Costco, it's a recession-resistant business because its bulk pricing on essential items attracts shoppers, no matter what's going on in the economy. Its members are also incredibly loyal, with the company enjoying an 89.7% global membership renewal rate.

Costco could further increase loyalty by opening new stores and winning over new customers. It focuses on deliberate expansion, which is a strength in the long run because the company is setting up its stores for success rather than rushing to build new ones. Costco expects its global warehouse totals to climb from 914 at the end of 2025 to 940 by the end of its fiscal 2026.

Also, while it's mainly known for its in-person shopping, Costco is seeing an increase in sales through its online efforts. For its fiscal 2026 third-quarter earnings, the retailer reported that its e-commerce and app traffic increased 37%, with digitally enabled comparable sales rising 21.5%.

Ultimately, what's more important than a split is if Costco keeps renewal rates high, builds more locations, and continually increases in-person and digital sales.

Bank of America is an advertising partner of Motley Fool Money. Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.