Costco Wholesale (NASDAQ:COST) Announces Earnings Results, Beats Expectations By $0.03 EPS

Costco Wholesale (NASDAQ:COST) posted its quarterly earnings data on Thursday. The retailer reported $4.58 earnings per share for the quarter, topping the consensus estimate of $4.55 by $0.03, FiscalAI reports. The business had revenue of $69.60 billion for the quarter, compared to analysts’ expectations of $68.96 billion. Costco Wholesale had a return on equity of 29.35% and a net margin of 2.96%.The business’s revenue was up 9.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $4.02 earnings per share.

Here are the key takeaways from Costco Wholesale’s conference call:

• Strong quarterly performance — Net income was $2.035 billion (EPS $4.58, +~14%), net sales $68.24 billion (+9.1%), comparable sales +7.4% and digitally enabled comps +22.6%, with membership fee income up 13.6% and 82.1 million paid members.
• Tariff uncertainty — The IEEPA tariffs were replaced by new global tariffs for at least 150 days, refund timing and amounts remain unclear, and the company faces complexity tracking past tariff pass‑throughs while committing to return any recoveries to members.
• Digital and in-warehouse tech gains — Mobile wallet, pharmacy pay‑ahead, pre-scan, automated pay stations and personalization are speeding checkout and boosting sales (personalized carousels drove over $470 million of e‑commerce sales); site traffic was up 32% and app traffic 45%.
• Margin and cost dynamics are mixed — Reported gross margin improved modestly and core‑on‑core margin rose 22 bps, but SG&A was slightly higher (including increased liability reserves) and there were offsets from higher executive rewards, lower co‑brand card income and a LIFO charge.
• Growth pipeline and real estate strategy — Costco opened 4 warehouses this quarter (924 total), expects ~28 net new openings in FY26 and is targeting 30+ per year going forward while pursuing creative urban/infill formats and continued international expansion.

Costco Wholesale Trading Down 2.4%

COST stock opened at $982.57 on Friday. The company has a market capitalization of $436.13 billion, a PE ratio of 52.63, a price-to-earnings-growth ratio of 4.81 and a beta of 1.01. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.53 and a current ratio of 1.04. Costco Wholesale has a one year low of $844.06 and a one year high of $1,067.08. The company’s 50 day moving average price is $959.15 and its two-hundred day moving average price is $935.92.

Costco Wholesale Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Friday, January 30th were given a dividend of $1.30 per share. This represents a $5.20 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date was Friday, January 30th. Costco Wholesale’s dividend payout ratio (DPR) is presently 27.85%.

Insider Buying and Selling

In other news, EVP Russell D. Miller sold 1,500 shares of the business’s stock in a transaction dated Friday, January 9th. The stock was sold at an average price of $916.32, for a total value of $1,374,480.00. Following the completion of the sale, the executive vice president owned 8,240 shares of the company’s stock, valued at approximately $7,550,476.80. The trade was a 15.40% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Susan L. Decker sold 458 shares of the firm’s stock in a transaction that occurred on Friday, January 16th. The stock was sold at an average price of $955.00, for a total value of $437,390.00. Following the transaction, the director owned 8,532 shares in the company, valued at approximately $8,148,060. The trade was a 5.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 6,915 shares of company stock worth $6,317,097 over the last 90 days. Insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Costco Wholesale

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Morgan Stanley grew its holdings in Costco Wholesale by 1.1% in the 4th quarter. Morgan Stanley now owns 9,523,423 shares of the retailer’s stock worth $8,212,433,000 after acquiring an additional 107,775 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in shares of Costco Wholesale by 2.5% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,282,011 shares of the retailer’s stock worth $2,830,209,000 after purchasing an additional 79,149 shares during the period. Amundi grew its stake in shares of Costco Wholesale by 45.0% in the third quarter. Amundi now owns 3,176,606 shares of the retailer’s stock worth $2,893,697,000 after purchasing an additional 986,182 shares during the last quarter. Price T Rowe Associates Inc. MD increased its holdings in Costco Wholesale by 13.4% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,953,923 shares of the retailer’s stock valued at $1,684,947,000 after purchasing an additional 230,618 shares during the period. Finally, Vestor Capital LLC increased its holdings in Costco Wholesale by 20,936.6% during the 4th quarter. Vestor Capital LLC now owns 970,840 shares of the retailer’s stock valued at $837,194,000 after purchasing an additional 966,225 shares during the period. 68.48% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on COST shares. Northcoast Research set a $1,100.00 price objective on Costco Wholesale and gave the company a “buy” rating in a report on Wednesday, December 24th. BMO Capital Markets reiterated an “outperform” rating on shares of Costco Wholesale in a research note on Friday, December 12th. Wells Fargo & Company boosted their price objective on Costco Wholesale from $900.00 to $950.00 and gave the company an “equal weight” rating in a research note on Thursday, February 5th. Daiwa Securities Group cut their target price on shares of Costco Wholesale from $947.00 to $917.00 and set a “neutral” rating for the company in a research report on Tuesday, December 16th. Finally, UBS Group reissued a “buy” rating on shares of Costco Wholesale in a research report on Friday, December 12th. Twenty-two analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $1,019.97.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Q2 results topped Street views: Costco reported $4.58 EPS and ~$69.6B revenue (both up year‑over‑year), with comparable‑store sales and membership income rising — a core validation of its membership model that supports longer‑term cash flow and margin expansion. Costco Earnings Beat Expectations as Membership Model Shines
• Positive Sentiment: Online and digital initiatives are accelerating: management cited ~22.6% e‑commerce growth and in‑store/digital integration gains, which help diversify growth beyond warehouse traffic. This supports upside to sales/memberships over time. Costco Digital Innovations Fuel 22.6% Online Growth
• Neutral Sentiment: Tariff‑refund comments: CEO said any government tariff refunds would be returned to members via lower prices — good for member value but ambiguous for near‑term margins and investor math on realized cash benefits. Costco CEO says any tariff refunds it gets will flow back to members
• Neutral Sentiment: Analyst/market context is mixed but generally constructive: several firms maintain buy/outperform views and elevated price targets (median targets remain above current levels), tempering downside even as near‑term volatility persists. COST Earnings: Costco Stock Little Changed after Beating
• Negative Sentiment: Local expansion uncertainty: Asheville officials say Costco may reconsider a proposed store after the city sought funding, introducing potential delays or lost growth opportunities in that market. Store openings can drive local sales and membership gains; delays matter to incremental growth assumptions. Asheville mayor says Costco may reconsider after city seeks funding
• Negative Sentiment: Some metrics vs. third‑party estimates were mixed: third‑party summaries noted revenue/EPS beat but a smaller cushion versus some higher estimates, and QuiverQuant flagged instances where consensus comparison showed a tighter margin — contributing to muted investor reaction. QuiverQuant: Revenue and EPS rise YoY but miss some estimates
• Negative Sentiment: Broader market headwinds: oil‑driven spikes and weaker futures pressured the market broadly, which can weigh on high‑multiple consumer names like Costco even when company fundamentals look strong. Dow Jones Futures Fall As Oil Keeps Surging

Costco Wholesale Company Profile

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.