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Stock splits, explained
What a split changes and what it doesn't, worked through with Booking Holdings' 25-for-1 split.
The short answer
A stock split gives every shareholder more shares while keeping their stake the same: in a 25-for-1 split each share becomes 25, and the price per share, EPS and dividend per share are divided by 25. The company's value, its earnings and each holder's percentage don't change. Booking Holdings split its stock 25-for-1 on Apr 2, 2026, and its quarterly dividend went from $10.50 a share to $0.42.
The arithmetic
A split multiplies the share count and divides everything stated per share by the same number. Using Booking's 25-for-1 split:
| Before | After | |
|---|---|---|
| Shares held by someone who owned 4 | 4 | 100 |
| Quarterly dividend per share | $10.50 | $0.42 |
| Dividend received each quarter on that holding | $42.00 | $42.00 |
| Holder's share of the company | unchanged | |
The $10.50 dividend is from Booking's 10-K for 2025, filed before the split. The $0.42 dividend is from its 10-Q for the quarter ended Sep 30, 2026, filed after it. $10.50 divided by 25 is $0.42.
The market price follows the same rule: a stock trading near some price before a 25-for-1 split opens near one twenty-fifth of it after. The market cap stays where it was, and so does the P/E ratio, since price and EPS are divided by the same number.
How filings handle a split
Once a split takes effect, companies restate past share counts and per-share figures so years can be compared. Booking's 10-Q says all share and per-share information "has been retroactively adjusted". Its 10-K, filed before the split took effect, said the opposite: the statements "do not reflect the impact" of the split it had just approved.
That's why an EPS figure from an old filing can look very different from the same year's EPS in a newer one. Before comparing per-share numbers across filings, check whether a split happened in between. Earnings per share covers the share counts behind EPS.
Other recent splits
- Nvidia, ten-for-one, in June 2024. Holders of record on Jun 6, 2024 received nine additional shares for each one they held. Its latest 10-K notes that all share and per-share amounts have been adjusted.
- NextEra Energy, four-for-one, effective Oct 26, 2020. Its latest 10-Q still converts an old buyback authorization: 45 million shares before the split, 180 million after.
Why companies split
Companies usually say a split makes shares more accessible to employees and individual investors by bringing the price per share down. The economics don't change, and many brokers now sell fractional shares, so the practical effect is smaller than it used to be.
Reverse splits
A reverse split runs the other way: in a 1-for-10 reverse split, every 10 shares become one and the per-share price is multiplied by 10. Companies usually do it to lift a low share price, often to keep meeting a stock exchange's minimum price.
Common questions
Does a stock split change what my shares are worth?
No. You get more shares, each worth proportionally less, so the total value of your holding and your share of the company stay the same.
What happens to the dividend in a stock split?
The dividend per share is divided by the split ratio, so the total paid on a holding doesn't change. Booking's quarterly dividend went from $10.50 before its 25-for-1 split to $0.42 after.
Why does EPS in an old filing differ from the same year in a new filing?
Often because of a split in between. After a split, companies restate past share counts and per-share amounts using the new number of shares.
What is a reverse stock split?
The opposite of a split: several shares are combined into one, and the per-share price goes up by the same factor. It's often used to lift a low share price.
Does a split change the P/E ratio or market cap?
No. Price and EPS are divided by the same number, so the P/E ratio stays the same, and the market cap doesn't change either.
Disclosures
- Editor holdings
- The editor holds no position in any company named on this page. As of Nov 11, 2026.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- Each company's own SEC filings, linked next to each number.
- Last updated
- Nov 9, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.
More in Learn and Tools · Methodology & Disclosures explains where every number comes from.