Costco Hasn't Split Its Stock Since 2000. Here's Why 2027 Could Be the Year.

Costco Wholesale (NASDAQ: COST) hasn't split its stock in nearly 27 years. Its last split occurred on Jan. 13, 2000, when the company executed a 2-for-1 split. Since then, Costco's share price has climbed from roughly $40 to more than $1,000, rewarding long-term shareholders as the company built one of the world's most successful retail businesses.

As of Oct. 30, shares were trading around $1,012, giving Costco a market capitalization approaching $450 billion. The stock has also traded as high as $1,096 over the past 52 weeks.

With shares firmly in four-digit territory, a stock split in 2027 is certainly possible. And while a split wouldn't make Costco fundamentally more valuable, it could attract additional attention to a company that already has plenty going for it.

Costco has a history of stock splits

Costco executed a 2-for-1 split in May 1991, followed by a 3-for-2 split in March 1992. Its most recent split came in January 2000. Since then, management has allowed the share price to climb without another split, even as Costco expanded into one of the world's largest retailers.

Today, the company operates 939 warehouses across multiple countries, with a lot of opportunities for additional domestic and international expansion. And with shares now trading above $1,000, another split could make practical sense.

A stock split could attract more investors

Consider what would happen if Costco announced a 10-for-1 stock split in 2027. At a hypothetical pre-split share price of $1,000, each share would become 10 shares trading at approximately $100 apiece. So if you're holding 10 shares worth $10,000, you would own 100 shares worth the same $10,000.

A 5-for-1 split would produce a $200 share price, while a 4-for-1 split would bring shares down to $250. None of these scenarios would change Costco's underlying value. However, a lower share price could make the stock more accessible to individual investors who prefer purchasing whole shares.

Granted, fractional-share trading already allows many investors to buy Costco with relatively little money. Still, a lower nominal price could broaden the stock's appeal and potentially encourage additional retail participation.

Costco's fundamentals make it a compelling long-term holding

Costco reported fiscal 2026 net sales of $297.2 billion, up 10.1% from the previous year. Net income increased approximately 14% to $9.23 billion, while diluted earnings per share climbed from $18.21 to $20.76.

Those results are particularly impressive considering Costco operates in an industry known for thin profit margins and intense competition. But unlike traditional retailers that rely primarily on merchandise markups, Costco benefits from recurring membership fees. Customers pay for access to its warehouses, and those fees help support the company's low-price strategy. The model has proven remarkably effective.

Membership renewals provide a relatively predictable source of revenue, while Costco's purchasing power helps it negotiate favorable prices with suppliers. Its limited product selection also contributes to operating efficiency. Meanwhile, international expansion offers another avenue for growth.

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Costco generated $15.8 billion in operating cash flow during fiscal 2026, providing significant financial flexibility to open warehouses, invest in its business, and return capital to shareholders. These are the characteristics of a business that can continue compounding earnings for years.

Costco's premium valuation makes sense

At approximately $1,012 per share, Costco trades around 49 times trailing earnings. That's expensive compared with many traditional retailers. But Costco isn't an ordinary retailer. Its membership model, customer loyalty, operating efficiency, and consistent expansion help explain why investors have historically been willing to pay a premium for its shares.

Of course, you still need to pay attention to valuation. Even exceptional businesses can deliver disappointing short-term returns when investors pay too much. And a stock split wouldn't change Costco's valuation.

If the company executed a 10-for-1 split, its share price would fall to approximately $101, but earnings per share would decline proportionately. Its price-to-earnings ratio would remain unchanged. Still, if you plan to hold shares for a decade or longer, Costco's ability to grow earnings and cash flow could matter far more than the price paid for any individual share.

A stock split would be a bonus, but not a reason to buy

Costco hasn't announced a split for 2027, and there's no guarantee one is coming. But with shares trading above $1,000, management has a reasonable opportunity to make the stock more accessible through a split. For long-term investors, though, Costco's business remains the bigger attraction.

The company has demonstrated that it can consistently grow sales, expand its warehouse footprint, generate substantial cash flow, and retain loyal customers. Those advantages aren't going away simply because the stock trades at a four-digit price.

Jeff Siegel 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.