Zacks Research Issues Negative Estimate for COST Earnings

Costco Wholesale Corporation (NASDAQ:COST) – Equities researchers at Zacks Research dropped their Q2 2026 earnings per share estimates for Costco Wholesale in a research note issued on Wednesday, December 31st. Zacks Research analyst Team now forecasts that the retailer will post earnings per share of $4.45 for the quarter, down from their previous estimate of $4.47. The consensus estimate for Costco Wholesale’s current full-year earnings is $18.03 per share. Zacks Research also issued estimates for Costco Wholesale’s Q3 2026 earnings at $4.86 EPS, FY2026 earnings at $20.01 EPS, Q1 2027 earnings at $4.70 EPS, Q2 2027 earnings at $4.88 EPS, Q3 2027 earnings at $5.31 EPS and Q4 2027 earnings at $6.94 EPS.

Several other analysts have also commented on the stock. Jefferies Financial Group reaffirmed a “buy” rating on shares of Costco Wholesale in a research report on Thursday, October 9th. Roth Capital set a $769.00 target price on Costco Wholesale and gave the company a “sell” rating in a research report on Monday, December 15th. Hovde Group started coverage on Costco Wholesale in a research note on Tuesday, November 18th. They issued a “market perform” rating and a $16.00 price target on the stock. DA Davidson reiterated a “neutral” rating and set a $1,000.00 price target on shares of Costco Wholesale in a report on Thursday, December 4th. Finally, Truist Financial cut their price objective on Costco Wholesale from $1,033.00 to $926.00 and set a “hold” rating for the company in a research report on Friday, December 12th. Twenty investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Costco Wholesale presently has a consensus rating of “Moderate Buy” and a consensus price target of $994.08.

Costco Wholesale Stock Performance

NASDAQ:COST opened at $889.10 on Monday. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.04 and a quick ratio of 0.53. The firm has a market capitalization of $394.64 billion, a price-to-earnings ratio of 47.62, a PEG ratio of 5.25 and a beta of 1.02. The company’s 50-day moving average is $893.00 and its two-hundred day moving average is $932.98. Costco Wholesale has a 1-year low of $844.06 and a 1-year high of $1,078.23.

Costco Wholesale (NASDAQ:COST) last issued its earnings results on Thursday, December 11th. The retailer reported $4.34 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.27 by $0.07. The business had revenue of $67.31 billion during the quarter, compared to the consensus estimate of $67.03 billion. Costco Wholesale had a return on equity of 29.35% and a net margin of 2.96%.The company’s revenue for the quarter was up 8.3% on a year-over-year basis. During the same period last year, the company earned $4.04 EPS.

Institutional Trading of Costco Wholesale

Several institutional investors and hedge funds have recently bought and sold shares of COST. Peterson Wealth Services raised its holdings in Costco Wholesale by 0.5% during the 2nd quarter. Peterson Wealth Services now owns 13,616 shares of the retailer’s stock worth $13,479,000 after purchasing an additional 72 shares during the last quarter. Fishman Jay A Ltd. MI grew its stake in Costco Wholesale by 3.5% in the second quarter. Fishman Jay A Ltd. MI now owns 16,888 shares of the retailer’s stock valued at $16,718,000 after acquiring an additional 575 shares during the period. Silver Oak Securities Incorporated increased its stake in Costco Wholesale by 49.3% during the 3rd quarter. Silver Oak Securities Incorporated now owns 3,780 shares of the retailer’s stock valued at $3,499,000 after purchasing an additional 1,248 shares in the last quarter. Permanent Capital Management LP bought a new position in Costco Wholesale in the 3rd quarter valued at about $874,000. Finally, Wealthspire Advisors LLC lifted its holdings in shares of Costco Wholesale by 2.0% in the second quarter. Wealthspire Advisors LLC now owns 15,799 shares of the retailer’s stock valued at $15,640,000 after purchasing an additional 312 shares in the last quarter. Hedge funds and other institutional investors own 68.48% of the company’s stock.

Insider Buying and Selling

In other Costco Wholesale news, EVP Claudine Adamo sold 2,700 shares of the business’s stock in a transaction that occurred on Friday, October 24th. The shares were sold at an average price of $935.68, for a total transaction of $2,526,336.00. Following the completion of the transaction, the executive vice president owned 6,851 shares in the company, valued at $6,410,343.68. The trade was a 28.27% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP William Richard Wilcox sold 2,400 shares of the company’s stock in a transaction dated Friday, November 7th. The stock was sold at an average price of $930.13, for a total value of $2,232,312.00. Following the transaction, the executive vice president directly owned 2,000 shares of the company’s stock, valued at approximately $1,860,260. This represents a 54.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 8,946 shares of company stock valued at $8,175,048. Corporate insiders own 0.10% of the company’s stock.

Costco Wholesale Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, November 14th. Stockholders of record on Friday, October 31st were given a dividend of $1.30 per share. This represents a $5.20 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend was Friday, October 31st. Costco Wholesale’s dividend payout ratio is currently 27.85%.

Key Stories Impacting Costco Wholesale

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Mizuho upgraded COST to “outperform” and raised its price target to $1,000, giving investors a near-term upside anchor and likely supporting buying interest. COST upgraded at Mizuho
• Positive Sentiment: Costco expects a new Port St. Lucie distribution center to open in March 2026 — a logistics expansion that can lower fulfillment costs and improve inventory flow in Florida. Port St. Lucie distribution center
• Positive Sentiment: Costco NZ reported its first profit since 2022 (NZ$9.6m) as revenue climbed, signaling international unit economics are improving. Costco NZ posts profit
• Positive Sentiment: Member partnerships (e.g., discounted Cadillac/Volvo EV offers) and perks may boost membership value and retention — a sticky revenue driver for the warehouse model. EV discounts for members
• Positive Sentiment: Analysts and coverage pieces highlight Costco’s growing digital ecosystem (e‑commerce, AI, same‑day delivery) as a compounding growth engine and referenced possible special/dividend actions, adding to bullish sentiment. Digital ecosystem article
• Neutral Sentiment: Market commentary bundles Costco among mega-cap “durable compounders” for 2026 — supportive longer‑term narrative but not a short‑term catalyst by itself. Why These 3 Mega-Caps Could Still Surprise
• Neutral Sentiment: high-profile investor commentary (e.g., Jim Cramer, Motley Fool lists) repeats a long-term buy thesis for COST; useful for sentiment but not an immediate fundamental change. Cramer’s Stop Trading: Costco
• Negative Sentiment: Some analyst pieces and models remain cautious: Zacks and others have published guarded near‑term earnings outlooks, calling out potential Q2 softness — a restraint on valuation. Zacks pessimistic outlook
• Negative Sentiment: Price‑target/forecast pieces note COST has pulled back from its 52‑week high and faces valuation questions; that technical/valuation pressure can limit near‑term upside. Price prediction and recent pullback

About Costco Wholesale

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company’s product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco’s business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.