Two Stock-Split Stocks Poised for Major Gains in 2026, According to Wall Street Analysts

Stock splits have returned to Wall Street’s playbook, and for good reason. When companies execute splits, it typically signals underlying business strength—years of robust performance that pushed stock prices beyond reach for everyday investors. This resurgence of splits has captured market attention, as historical data shows stocks delivering such moves generate approximately 25% average returns in the year following announcement, far outpacing the S&P 500’s typical 12% gain, according to Bank of America analyst Jared Woodard. Two compelling candidates are currently trading at attractive valuations with significant upside potential according to Street consensus.

Netflix Stock: 62% Return Potential Amid Content Strategy Questions

Netflix (NASDAQ: NFLX) executed a 10-for-1 stock split, reflecting its decade-long ascent of 810%. Yet the streaming giant has stumbled recently, declining 38% from peak levels due to investor concerns surrounding its potential acquisition of studio assets from Warner Bros. Discovery and the resulting competitive tensions with Paramount Skydance.

However, dismissing Netflix would be premature. The company’s Q4 results demonstrate sustained momentum: record revenue hit $12 billion (up 17% year-over-year), the strongest growth pace since early 2021, while diluted earnings per share jumped 30% to $0.56. Management guidance points to continued acceleration, projecting Q1 revenue of $12.15 billion and EPS of $0.76, representing 15% growth. Notably, advertising revenue is expected to double to $3 billion this year, representing 6% of total revenue.

Wall Street remains decidedly optimistic on these stocks. Of the 44 analysts covering Netflix in January, 68% assigned buy or strong buy ratings. The consensus price target suggests 34% additional upside from recent levels. However, BMO Capital analyst Brian Pitz extends this outlook further, maintaining an outperform rating with a $135 price target—implying 62% potential gains. His thesis emphasizes solid execution and expanding ad revenue monetization.

From a valuation perspective, Netflix trades at 27 times forward earnings, marking its lowest multiple in nearly two years. Combined with management’s consistent track record of disciplined decision-making on content investments, the risk-reward appears favorable for patient investors.

ServiceNow Stock: 123% Upside as AI Concerns Dissipate

ServiceNow’s (NYSE: NOW) 48% decline over the past year positioned it for a 5-for-1 stock split—a move initiated when shares exceeded $800. The company’s cloud-based software automates enterprise workflows, a role that seemingly puts it at risk from artificial intelligence disruption.

Yet the data tells a different story. ServiceNow’s Q4 revenue of $3.53 billion grew 21% year-over-year, driving adjusted basic EPS to $0.92, up 24%. More importantly, the company’s remaining performance obligation (RPO)—contractually committed revenue not yet recognized—jumped 27% to $24.3 billion. This metric’s outpacing of revenue growth historically signals accelerating expansion ahead, a dynamic that typically goes unnoticed by sentiment-driven markets.

Analyst sentiment on ServiceNow stocks is extraordinarily strong: 91% of the 45 analysts offering opinions in January assigned buy or strong buy ratings. The average price target implies 72% upside potential. Yet Citizens analyst Patrick Walravens outpaces his peers with a $260 target, representing 123% potential gains—the most bullish on the Street. Walravens cites the company’s attractive financial profile and projected 2026 acceleration as justification.

ServiceNow’s valuation reinforces the opportunity: trading at just 28 times forward earnings, the stock has shed the premium multiple that once characterized it. For investors seeking exposure to enterprise software with genuine growth catalysts, ServiceNow stocks present a compelling entry point.

The Investment Case for These Growth Stocks

Both Netflix and ServiceNow share critical characteristics that historically precede outsized returns. Each has navigated temporary headwinds while maintaining underlying business strength. Each commands broad analyst support. And each trades at valuations that offer attractive asymmetric risk-reward for long-term oriented investors.

The stock-split phenomenon often marks inflection points—moments when market participants recognize that peak business performance, relatively depressed valuations, and positive fundamentals alignment create rare opportunities. History suggests these stocks merit consideration for growth-oriented portfolios.