Costco Wholesale (COST) Earnings Date & Reports

Key Takeaways

• Costco reported diluted earnings per share (EPS) of $6.75 for the 16-week fiscal fourth quarter, up from $5.87 a year earlier and above the consensus estimate of about $6.55.
• Total revenue reached $95.72 billion, ahead of the roughly $94.85 billion analysts expected, while net sales rose 11.2% to $93.87 billion.
• Comparable sales climbed 9.4% on a reported basis and 6.7% excluding gasoline price changes and foreign exchange.
• Membership fee income grew 7.3% to $1.85 billion, supported by rising paid and Executive member counts.
• Full fiscal-year 2026 net sales increased 10.1% to $297.2 billion, with net income of $9.23 billion, or $20.76 per diluted share.

Earnings Context and Why It Matters

Costco Wholesale Corporation is one of the world's largest membership-based warehouse retailers, and its quarterly results serve as a closely watched gauge of U.S. and global consumer spending. Its fourth quarter and fiscal-year report, covering the 16 weeks ended August 30, 2026, captures a critical back-to-school and summer selling season while also closing the books on a full year of expansion. For investors, the report matters because it shows whether Costco's membership model, comparable-sales momentum, and fast-growing digital business can sustain double-digit growth at a premium valuation. The results also offer a read on inflation, margin trends, and the pace of new warehouse openings heading into fiscal 2027.

Reported Results

Costco reported fourth-quarter net income of $2.998 billion, or $6.75 per diluted share, compared with $2.610 billion, or $5.87 per share, in the prior-year period. The figure included a non-recurring benefit of $0.15 per share tied to tariff refunds received during the quarter, partially reinvested in member value. Excluding that item, net income and EPS rose 12.3% and 12.4%, respectively.

Total revenue of $95.72 billion exceeded the consensus estimate of about $94.85 billion, while net sales of $93.87 billion increased 11.2% year over year. Comparable sales rose 9.4% on a reported basis and 6.7% excluding gasoline and foreign exchange. Digitally enabled comparable sales climbed 19.5%, and membership fee income advanced 7.3% to $1.85 billion.

For the full 52-week fiscal year, net sales grew 10.1% to $297.2 billion, and net income reached $9.23 billion, or $20.76 per diluted share, up from $18.21 per share in fiscal 2025.

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Market Reaction and Investor Sentiment

Despite topping top- and bottom-line estimates, Costco shares saw a muted response, consistent with a recurring "beat and drop" pattern for the stock in recent quarters. The results highlight strong underlying fundamentals, including double-digit sales growth, record digital momentum, and resilient membership metrics. However, investors appeared to focus on several factors, including a slight decline in the gross margin rate, a larger inventory charge (LIFO), and the non-recurring nature of the tariff-refund benefit. The lack of a new special dividend announcement and the stock's premium valuation also tempered enthusiasm, even as the company affirmed plans for continued warehouse expansion and member-value reinvestment.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors will watch how Costco balances its strategy of reinvesting in lower prices with the need to protect margins. Management has signaled plans to open roughly 33 new warehouses in fiscal 2027 while targeting about 30 net new locations annually over the next several years, supporting an ongoing capital-expenditure program of around $7.5 billion.

Digital sales remain a key growth engine, with fiscal 2026 digital revenue surpassing $33 billion, up more than 20% year over year, aided by personalization and AI-driven search traffic. Sustaining that trajectory will be an important theme in upcoming quarters.

Membership trends also warrant attention. Paid members grew 3.8% to 84.1 million and Executive members rose 9.4% to 42.3 million, with renewal rates improving sequentially. Because membership fees are a high-margin, recurring revenue stream, any change in sign-up or renewal momentum can meaningfully influence profitability.

Finally, inflation in areas such as memory components and petroleum-based products, along with possible tariff-related volatility, could affect margins and pricing decisions in the quarters ahead. Costco's next earnings report, for the first quarter of fiscal 2027, is expected around mid-December 2026.

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