Costco Wholesale (COST) Earnings Date & Reports
Founded in 1983, Costco Wholesale now operates a global chain of membership-based warehouse clubs, delivering high-quality goods and services at consistently low prices... Show more
COST is expected to report earnings to rise 32.86% to $6.55 per share on September 24
Costco Wholesale (COST) Second Quarter Fiscal 2026 Earnings Recap: Sales and Profits Top Estimates
Key Takeaways
- Costco reported second quarter fiscal 2026 net sales of $68.24 billion, up 9.1% year-over-year, beating consensus estimates of approximately $69.06 billion for total revenue.
- Diluted earnings per share (EPS) reached $4.58, a 13.9% increase from $4.02 last year, surpassing Wall Street expectations of $4.55.
- Comparable sales rose 7.4% (6.7% excluding gasoline prices and foreign exchange fluctuations), driven by 3.1% traffic growth and a 4.2% higher average ticket.
- Digital sales surged 22.6%, while membership fees grew 13.6% to $1.355 billion, supporting stable renewal rates of 89.7% worldwide.
- Company operates 924 warehouses globally, planning 28 net new openings in fiscal 2026 and targeting 30+ annually long-term.
- Shares dipped about 2.4% in after-hours trading post-release, reflecting high valuation expectations despite the beat.
Earnings Context and Why It Matters
Costco Wholesale Corporation's second quarter fiscal 2026 results, for the 12 weeks ended February 15, 2026, underscore its resilience in a value-conscious retail environment. As a membership-based warehouse club, Costco benefits from loyal shoppers prioritizing bulk essentials amid inflation and tariff pressures. These earnings follow a strong first quarter and build on trends like digital acceleration and international expansion. For investors, the report highlights membership-driven stability—accounting for over 70% of operating income—and operational efficiencies, making COST a benchmark for consumer defensive plays. With shares near all-time highs, results validate premium multiples but test if growth can sustain elevated valuations.
Costco delivered robust second quarter fiscal 2026 performance, exceeding analyst expectations across key metrics. Total revenue reached $69.60 billion, up 9.2% from the prior year and above the $69.25 billion consensus. Net sales climbed 9.1% to $68.24 billion, fueled by 7.4% comparable sales growth (6.7% adjusted for gas and FX). U.S. comps rose 5.9% (6.4% adjusted), Canada 10.1% (7.6%), and other international 13.0% (7.1%). Digital comps jumped 22.6% (21.7% adjusted), highlighting e-commerce strength in categories like gold/jewelry and pharmacy.
Net income hit $2.035 billion, up nearly 14%, translating to diluted EPS of $4.58 versus $4.02 last year and the $4.55 forecast. Membership fees, a high-margin staple, increased 13.6% to $1.355 billion, with paid memberships at 82.1 million (up 4.8%) and worldwide renewal rates steady at 89.7%. Gross margins expanded 17 basis points to 11.02%, aided by core merchandise gains, while SG&A rose modestly. No formal guidance was issued, but management reaffirmed 28 net new warehouses for fiscal 2026 (targeting 30+ annually) and $6.5 billion in capital expenditures for expansion and digital upgrades.
AI Screener
Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener identifies trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening, empowering data-driven decisions in dynamic markets. Explore the AI Screener today to uncover hidden gems like COST amid earnings season.
Market Reaction and Investor Sentiment
Despite topping estimates, Costco shares fell 2.4% to $995.53 in after-hours trading on March 5, 2026, and declined further the next day before recovering somewhat. Investors interpreted the results as solid but not transformative, given high expectations baked into the stock's 50x+ P/E ratio. Sentiment remains positive on membership loyalty and digital momentum, though valuation concerns tempered enthusiasm. Analysts largely maintained "Moderate Buy" ratings, citing consistent execution amid retail peers' challenges.
Forward Outlook and Key Factors to Monitor
Following Q2 results, Costco's focus remains on membership retention, digital enhancement, and measured expansion. Management targets 28 net new warehouses in fiscal 2026, reaching about 942 locations, with a long-term goal of 30+ annually—roughly half in the U.S. and the rest international, including high-potential markets like China and Mexico. Capital expenditures are projected at $6.5 billion, allocated to new builds, remodels for high-volume sites, depot networks, and digital tools like mobile wallets and AI personalization to boost e-commerce beyond 20% comp growth.
Investors should watch monthly sales releases, starting with March results on April 8, for comp trends amid calendar shifts like late Lunar New Year. Tariff agility—via sourcing shifts and Kirkland Signature private label—and inflation dynamics (deflation in eggs/dairy offset by non-foods) will influence margins. Consumer signals, such as traffic in fresh foods and ancillary services (pharmacy, food court), alongside executive membership penetration (now 75.8% of sales), signal demand resilience.
Geopolitical risks, including Middle East tensions potentially raising fuel/shipping costs, add uncertainty. Renewal rates (92.1% U.S./Canada) and digital adoption via app traffic (up 63%) remain key for recurring revenue stability. Upcoming Q3 earnings on May 28 will provide clarity on sustained 6-7% comps and margin expansion through efficiencies.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
Advertisement
General Information
a company which sells goods through membership warehouses
Industry DiscountStores