Costco Wholesale Corporation · NASDAQ: COST
Costco (COST) Stock Research
Costco generated $93.873 billion of net sales and $6.75 of diluted EPS in its 16-week fourth quarter of FY2026. Its membership model combines frequent shopping, low merchandise markups and recurring fees. For COST investors, the central question is whether renewal strength, sales growth and new warehouses can sustain earnings growth at the valuation paid.
- Latest complete quarter
- Q4 FY2026 · 16 weeks
Aug 30, 2026 - Results released
- Sep 24, 2026
- Annual report filed
- Oct 7, 2026
- Research reviewed
- Oct 14, 2026
01
Official Q4 FY2026 results
Costco earnings, membership fees and margins
The quarter covers 16 weeks ended August 30, 2026. Merchandise gross margin and operating margin are calculated from the issuer’s income statement with different denominators. Membership fees are excluded from merchandise gross margin; selling, general and administrative costs are not deducted from merchandise gross profit.
Q4 and full-year FY2026 earnings release · September 24, 2026 ↗
02
Growth and earnings quality
What changed in Costco’s latest results?
Q4 net sales grew 11.2% year over year to $93.873 billion. Membership fees added $1.850 billion, bringing total revenue to $95.723 billion. Net sales and total revenue are different measures and are kept separate here.
Comparable sales increased 9.4% as reported, or 6.7% excluding gasoline-price and currency changes. Digitally-enabled comparable sales grew 19.5%, or 19.8% on the adjusted basis; this channel measure is broader than sales on Costco’s e-commerce websites alone.
Operating income rose to $3.801 billion from $3.341 billion a year earlier, and GAAP EPS increased to $6.75 from $5.87. The quarter included a non-recurring $0.15 EPS benefit from tariff refunds after part of the refunds was reinvested in member value.
FY2026 membership-fee revenue reached $5.907 billion, versus $5.323 billion in FY2025. Paid memberships rose to 84.1 million from 81.0 million, while U.S./Canada and worldwide renewal rates were 92.3% and 89.8%. Renewal loyalty and recognized fee revenue describe related but different parts of the business.
03
BasisPilot
COST: member value and returns to shareholders
Member value supports repeat shopping
Low merchandise markups are part of Costco’s proposition, not simply a profitability weakness. The model works when useful prices and product selection bring members back often enough to support volume, fees and efficient warehouse operations. The quality of that cycle matters more than maximizing the margin on each item.
Renewals are stronger evidence than sign-ups alone
New memberships add customers, while renewals help show whether those customers continue to see value. The reported rates use a lagged cohort, so a strong current sign-up campaign need not appear immediately in renewals. Fee increases can also lift revenue without a similar increase in the membership base.
Executive members deepen the relationship
Executive memberships were 42.3 million and accounted for approximately 75.2% of worldwide net sales. These members are a subset of paid members, not an additional group to add to the total. Their spending mix and reward economics help explain why customer counts alone do not capture the full revenue opportunity.
Thin retail margins amplify cost changes
Wages, freight, shrink and merchandise costs can absorb a meaningful share of incremental profit even when sales keep growing. Merchandise gross margin measures product economics; operating margin also reflects fees and the expense of running the business. Mixing those denominators obscures the operating trend.
New warehouses need time to mature
New locations expand access and create room for membership growth, but require property, equipment and local execution before they reach mature sales levels. Nearby openings can also shift traffic from existing warehouses. Durable expansion combines successful openings with healthy established-location demand.
A strong business still needs a reasonable entry multiple
Reliable renewals and cash generation can support a valuation premium, but they do not remove price risk. When an investor assumes a high P/E, slower growth or a lower future multiple can offset otherwise sound operating results. Earnings quality and the assumptions embedded in price belong in the same analysis.
04
The membership business
Costco members, renewals and fee income
Paid membership counts include active memberships and certain memberships expired within the preceding twelve months; they are not an active-subscriber total. Total cardholders also include supplemental cards. Executive memberships are a subset of, rather than an addition to, paid memberships. Renewal rates capture renewals during the seven-to-eighteen-month period before the reporting date; memberships expiring in the most recent six months are excluded whether or not they have renewed, allowing for later renewals.
Fees and retail scale work together
FY2026 membership fee revenue was US$5.907B, alongside US$297.247B of merchandise net sales. Fee income helps support the low-markup model, but it is revenue rather than a separately disclosed membership-segment profit. The costs of serving members and operating warehouses still matter.
Fee changes reach revenue gradually
Membership fees are recognized over the membership term rather than entirely when cash is collected. Growth therefore reflects the member base, membership mix and the timing of recognition as well as pricing. A high renewal rate supports recurring demand but does not by itself establish future earnings growth.
FY2026 audited annual report · membership definitions and revenue recognition ↗
05
Geography and merchandise categories
How Costco earns its revenue
Merchandise net sales come from food, fresh products, non-food items, and ancillary or other businesses. These category totals exclude membership fees. Everyday needs can support repeat visits, while discretionary purchases, gasoline prices and ancillary activity create different sources of variability.
Membership fees are recognized over the one-year membership period, net of refunds, rather than all at the date cash is collected. They strengthen the economics of the retail model, but are not pure profit: serving members requires warehouses, staff, systems and rewards.
The United States, Canada and Other International are Costco’s geographic operating segments. Their annual total revenue includes membership fees, unlike the merchandise-category net-sales breakdown. Currency, warehouse maturity and local cost structures can produce different results across regions.
United States
- FY2026 total revenue
- US$219.823B
- Operating income
- US$7.647B
72.5% of annual total revenue.
Canada
- FY2026 total revenue
- US$40.561B
- Operating income
- US$2.107B
13.4% of annual total revenue.
Other International
- FY2026 total revenue
- US$42.770B
- Operating income
- US$1.931B
14.1% of annual total revenue.
| Category | Net sales | Share of merchandise net sales |
|---|---|---|
| Foods and Sundries | 116,788 | 39.3% |
| Non-Foods | 77,375 | 26.0% |
| Fresh Foods | 41,715 | 14.0% |
| Warehouse Ancillary and Other Businesses | 61,369 | 20.6% |
Geographic segments use total revenue, including membership fees. Merchandise categories split net sales only; the two views describe the same business and must not be added together. The annual report records 939 warehouses at the August 30, 2026 fiscal year-end.
FY2026 Form 10-K · geographic segments and net-sales categories ↗
06
Existing-business demand
Costco comparable-sales growth
The Q4 figures cover the same 16-week quarter. Adjusted comparable sales exclude changes in gasoline prices and foreign exchange; reported results retain those effects. They are supplemental growth measures, not substitutes for GAAP net sales or an estimate of profit growth.
| Market / channel | Reported growth | Excluding gasoline and FX |
|---|---|---|
| United States | 10.7% | 7.2% |
| Canada | 5.0% | 4.6% |
| Other International | 7.0% | 6.2% |
| Total Company | 9.4% | 6.7% |
| Digitally-enabled | 19.5% | 19.8% |
Digitally-enabled comparable sales grew 19.5% reported and 19.8% adjusted in this quarterly table. This company-defined channel is not a separately reported operating segment and should not be added to geographic sales. September’s newer 19.0% / 19.1% digitally-enabled figures refer to sales growth instead.
07
Annual cash generation
Costco cash flow, investment and shareholder returns
These are annual cash flows, not Q4-only amounts. Cash flow after capital expenditure is a derived research measure, not a separate GAAP line item; it does not deduct acquisitions, dividends or share repurchases. Working-capital movements can change cash generation even when reported earnings grow.
Cash and cash equivalents of US$20.207B plus short-term investments of US$1.094B at August 30. This is not net cash: borrowings, leases and other obligations remain separate.
Dividends and repurchases
Cash dividend payments were US$2.458B and common-stock repurchases were US$0.848B. These are historical payments, not a commitment to a future special dividend or a current dividend-yield estimate.
FY2026 audited cash-flow statement and balance sheet · filed October 7, 2026 ↗
Year-end cash and cash equivalents include US$2.842B of unsettled credit- and debit-card receipts, which generally settle within four days. Settlement timing and supplier-payment terms affect the cash balance; liquidity is not the same as surplus cash available for distributions.
08
Eight quarters and three fiscal years
COST quarterly and annual earnings history
Costco’s first three fiscal quarters normally cover twelve weeks, while the fourth covers sixteen weeks in a 52-week fiscal year. The larger Q4 sales total therefore reflects a longer reporting period as well as the business. Compare matching fiscal quarters across years rather than annualizing one quarter or treating sequential sales totals as equivalent durations.
| Fiscal quarter / end | Weeks | Net sales | Membership fees | Total revenue | Operating income | Net income | GAAP diluted EPS | Released / source |
|---|---|---|---|---|---|---|---|---|
| Q4 FY2026 Aug 30, 2026 | 16 | 93,873 | 1,850 | 95,723 | 3,801 | 2,998 | 6.75 | Sep 24, 2026 ↗ |
| Q3 FY2026 May 10, 2026 | 12 | 69,154 | 1,373 | 70,527 | 2,815 | 2,192 | 4.93 | May 28, 2026 ↗ |
| Q2 FY2026 Feb 15, 2026 | 12 | 68,242 | 1,355 | 69,597 | 2,606 | 2,035 | 4.58 | Mar 5, 2026 ↗ |
| Q1 FY2026 Nov 23, 2025 | 12 | 65,978 | 1,329 | 67,307 | 2,463 | 2,001 | 4.50 | Dec 11, 2025 ↗ |
| Q4 FY2025 Aug 31, 2025 | 16 | 84,432 | 1,724 | 86,156 | 3,341 | 2,610 | 5.87 | Sep 25, 2025 ↗ |
| Q3 FY2025 May 11, 2025 | 12 | 61,965 | 1,240 | 63,205 | 2,530 | 1,903 | 4.28 | May 29, 2025 ↗ |
| Q2 FY2025 Feb 16, 2025 | 12 | 62,530 | 1,193 | 63,723 | 2,316 | 1,788 | 4.02 | Mar 6, 2025 ↗ |
| Q1 FY2025 Nov 24, 2024 | 12 | 60,985 | 1,166 | 62,151 | 2,196 | 1,798 | 4.04 | Dec 12, 2024 ↗ |
Three-year annual financial history
| Fiscal year / end | Weeks | Net sales | Membership fees | Total revenue | Operating income | Net income | Diluted EPS | Operating cash flow | Capital expenditure | Cash flow after capex |
|---|---|---|---|---|---|---|---|---|---|---|
| FY2026 Aug 30, 2026 | 52 | 297,247 | 5,907 | 303,154 | 11,685 | 9,226 | 20.76 | 15,817 | 6,435 | 9,382 |
| FY2025 Aug 31, 2025 | 52 | 269,912 | 5,323 | 275,235 | 10,383 | 8,099 | 18.21 | 13,335 | 5,498 | 7,837 |
| FY2024 Sep 1, 2024 | 52 | 249,625 | 4,828 | 254,453 | 9,285 | 7,367 | 16.56 | 11,339 | 4,710 | 6,629 |
Reported earnings and unusual items
Q4 FY2026 diluted EPS of US$6.75 includes a US$0.15 non-recurring benefit from tariff refunds after partial reinvestment in member value. The tables preserve reported GAAP EPS. FY2026 annual diluted EPS is US$20.76 as directly disclosed; weighted-average shares and rounding mean annual EPS need not equal the sum of rounded quarterly EPS. The annual cash-flow history uses the audited 10-K, rather than the preliminary earnings-release statement.
09
Reported earnings and price sensitivity
COST valuation: concrete P/E scenarios
COST valuation starts with earnings that can persist through changes in consumer demand and operating costs. The calculator uses the disclosed $20.76 of FY2026 GAAP diluted EPS, not Q4 EPS multiplied by four. Its dollar scenarios make the effect of a different P/E visible. Enter your reference share price and a forward EPS assumption to compare reported and assumed future earnings; neither input is an automatic market quote or an analyst consensus forecast.
Costco’s reported annual earnings provide a concrete basis for comparing valuation multiples. The editable 30×, 40× and 50× examples show prices implied by the same earnings; they are sensitivity scenarios, not fair-value estimates, price targets or current market quotes.
FY2026 results released September 24, 2026. Official earnings release ↗
| Scenario | Assumed P/E | FY2026 EPS (USD/share) | Scenario price (USD/share) |
|---|---|---|---|
| Scenario 1 | 30.00× | US$20.76 | US$622.80 |
| Scenario 2 | 40.00× | US$20.76 | US$830.40 |
| Scenario 3 | 50.00× | US$20.76 | US$1,038.00 |
- P/E on reported FY2026 earnings
- —
- Reported earnings yield
- —
- P/E on your forward EPS assumption
- —
The annual earnings basis includes Q4’s non-recurring tariff-refund benefit of US$0.15 per diluted share, net of partial reinvestment in member value. No adjusted annual EPS is substituted. Full-year diluted EPS is used directly from the annual results, not obtained by summing rounded quarterly EPS. Earnings yield is reported EPS divided by your price, not a dividend yield or expected return.
10
SEC 13F
Costco institutional ownership coverage
BasisPilot’s current tracked-manager sample has no Costco position records to display. This does not mean Costco has no institutional shareholders. A selected 13F sample covers particular managers and delayed reporting periods, rather than the whole shareholder base. Explore the covered managers’ portfolios for broader institutional context.
Explore institutional 13F portfolios11
Fund exposure and concentration
COST in consumer-staples ETFs
XLP · Consumer Staples Select Sector SPDR
State Street’s issuer holdings list dated October 12, 2026 includes Costco. XLP provides S&P 500 consumer-staples sector exposure across retail, food, beverages, household products and other businesses; this is a different mix from holding COST alone.
VDC · Vanguard Consumer Staples ETF
Vanguard’s June 30, 2026 fact sheet lists Costco among VDC’s holdings. VDC tracks a U.S. consumer-staples index spanning large-, mid- and small-cap companies. This dated evidence confirms fund exposure, not a live COST weight or a current portfolio allocation.
12
Different retail economics
How to compare Costco with other retailers
Membership retail versus broad retail
Costco’s low-markup warehouse model combines merchandise sales and recurring membership revenue. Walmart’s wider assortment and omnichannel model are a different business mix. Compare matching sales definitions, operating profit, cash flow and fiscal-period lengths; a lower merchandise gross margin does not on its own imply a weaker model.
Walmart stock research →Amazon’s retail segment is not the whole company
Amazon combines retail with cloud services and advertising, so its consolidated revenue, margins and valuation reflect more than merchandise economics. Use segment-level comparisons where possible. An EPS multiple should also reflect the durability of cash generation, reinvestment needs and the earnings basis being compared.
Amazon stock research →13
Downside and resilience
COST investment risks
Membership retention and acquisition mix
Promotional or digitally acquired memberships may renew differently from long-standing warehouse customers. A larger reported membership base does not guarantee the same retention or spending across every cohort.
Consumer spending and competitive value
Customers can reduce discretionary purchases or compare more aggressively on price. Volume, shopping frequency and mix can weaken even if inflation lifts the dollar amount of sales.
Tariffs, wages and logistics
Costco’s low-markup model leaves limited room to absorb a persistent increase in merchandise, labor or distribution costs. Passing costs to members can protect margins but weaken the value proposition; reinvestment can support loyalty while reducing near-term profit.
Warehouse expansion and returns
New locations require capital and may cannibalize existing warehouses before the local market develops. Construction costs, permits and execution can change the timing and return on expansion spending.
Inventory, suppliers and cash timing
Inventory purchases, supplier payments and card settlement affect operating cash flow. A favorable working-capital period can reverse; cash flow should be considered across multiple years rather than treated as a fixed percentage of profit.
Currency, systems and valuation
International results are exposed to currency and local conditions, while cyber or system disruptions can affect members and operations. Separately, a high entry multiple can create weak shareholder returns if earnings grow more slowly than expected or valuation multiples contract.
14
Read BasisPilot market insights →BasisPilot insights
Costco earnings and consumer research
15
Earnings, valuation and fund exposure
Common questions about COST stock
What are Costco’s latest quarterly earnings?
Costco’s Q4 FY2026 covered 16 weeks ended August 30, 2026. Net sales were $93.873 billion, total revenue was $95.723 billion, net income was $2.998 billion and diluted EPS was $6.75. The earnings release was published September 24; the annual 10-K was filed October 7.
Why are net sales and total revenue different?
Net sales exclude membership fees. Q4 net sales of $93.873 billion plus $1.850 billion of recognized membership fees equal $95.723 billion of total revenue. Merchandise gross margin uses net sales as its denominator; the operating-margin calculation here uses total revenue.
How strong are Costco’s membership renewals?
FY2026 renewal rates were 92.3% in the U.S. and Canada and 89.8% worldwide. Costco uses a trailing renewal calculation covering the cohort renewed seven to eighteen months before the reporting date. Memberships expiring in the latest six months are excluded, so the measure is not an immediate renewal rate for new sign-ups.
Are paid members and cardholders the same count?
No. Costco reported 84.1 million paid memberships and 150.4 million total cardholders, including household cards. Its 42.3 million Executive memberships are a subset of paid memberships. The membership count also includes some memberships that expired within the prior twelve months; it is not a count of only currently active accounts.
Can Costco’s Q4 be compared directly with Q3?
Not by raw revenue alone. Q4 FY2026 covers sixteen weeks, versus twelve weeks for each of Q1, Q2 and Q3. The history states the week count for each period. Same-quarter year-over-year comparisons and comparable sales are more informative than assuming that a larger Q4 means sequential acceleration.
How much cash did Costco generate in FY2026?
The audited 10-K reports $15.817 billion of operating cash flow and $6.435 billion of additions to property and equipment. Their difference is $9.382 billion, shown here as calculated free cash flow. These are annual figures, not Q4 cash flow, and the calculated measure is not a separately reported GAAP line item.
How are COST valuation scenarios calculated?
The disclosed FY2026 diluted EPS of $20.76 is multiplied by editable P/E assumptions. At 30, 40 and 50 times earnings, the scenarios are $622.80, $830.40 and $1,038.00 per share. They illustrate sensitivity, not fair values or targets. No current market price is supplied.
Does reported Costco EPS equal recurring earnings?
Not exactly. Q4 FY2026 EPS includes a non-recurring $0.15 contribution from tariff refunds net of partial reinvestment in member value. Tax items also affect comparisons. The history consistently retains GAAP EPS, including these effects; the calculator’s optional forward EPS is a user assumption, not issuer guidance.
Which ETFs provide Costco exposure?
The XLP issuer holdings reviewed were dated October 12, 2026 and included Costco. Vanguard’s VDC fact sheet dated June 30, 2026 also listed Costco. Both funds diversify across consumer-staples businesses; neither is equivalent to owning COST alone. Holdings and weights change, so consult the dated issuer disclosure.
Why is there no COST institutional-holder table here?
BasisPilot’s current tracked-manager 13F snapshot has no matched Costco position. That is a limitation of this sample, not evidence that institutions do not own COST. Form 13F is also a delayed quarter-end disclosure, not a live ownership register or transaction cost record.
16
Primary disclosures and reporting dates
Costco sources and methodology
Fiscal year-endAug 30, 2026Annual report filedOct 7, 2026Research reviewedOct 14, 2026
Financial results cover the fiscal quarter and year ended August 30, 2026; quarterly results were released September 24 and the audited annual report was filed October 7. The newer sales update covers five weeks ended October 4. Merchandise net sales, membership fees and total revenue are kept separate. Valuation scenarios use reported FY2026 annual EPS with editable assumptions and do not provide a market quote. ETF holdings retain their issuer dates, while 13F coverage is limited to the selected filing sample. This material is educational research, not personalized investment advice.