Costco Wholesale (NASDAQ:COST) Issues Quarterly Earnings Results

Costco Wholesale (NASDAQ:COST) released its quarterly earnings data on Thursday. The retailer reported $6.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $6.54 by $0.21, FiscalAI reports. The business had revenue of $95.72 billion for the quarter, compared to the consensus estimate of $94.97 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.

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

• Strong fourth-quarter performance: Net sales rose 11.2% to $93.87 billion, while comparable sales increased 9.4% (6.7% excluding gas and foreign exchange). Adjusted for the $0.15 per-share tariff-refund benefit, diluted EPS still grew 12.4% year over year.
• Continued warehouse and digital expansion: Costco plans 33 warehouse openings in fiscal 2027, including 28 net new locations, while digitally enabled sales grew more than 20%. Uber Eats and DoorDash delivery coverage will expand nationwide, and management said these channels are largely incremental to warehouse sales.
• Membership quality remained healthy: Paid members increased 3.8% to 84.1 million, executive members grew 9.4% to 42.3 million, and U.S./Canada renewal rates improved to 92.3%. Management highlighted growing engagement among younger members, through gas, digital channels and executive memberships, as a potential driver of higher future spending.
• Tariff refunds and cost pressures create earnings uncertainty: Costco received $184 million of tariff refunds in the quarter but expects to reinvest most future refunds into lower member prices, making the benefit non-recurring. A $152 million LIFO charge, driven by inflation in electronics memory, gas and petroleum-related products, also pressured gross margins, while future tariffs, freight and commodity costs remain difficult to predict.

Costco Wholesale Stock Performance

Shares of Costco Wholesale stock opened at $896.48 on Friday. The stock’s fifty day moving average is $934.32 and its two-hundred day moving average is $968.18. The company has a market capitalization of $397.57 billion, a PE ratio of 45.09, a price-to-earnings-growth ratio of 3.78 and a beta of 0.86. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. Costco Wholesale has a 52 week low of $844.06 and a 52 week high of $1,096.50.

Costco Wholesale Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were issued a dividend of $1.47 per share. The ex-dividend date was Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a yield of 0.7%. Costco Wholesale’s payout ratio is presently 29.58%.

More Costco Wholesale News

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

• Positive Sentiment: Costco exceeded Wall Street expectations, reporting $6.75 in diluted EPS versus the $6.54 consensus and $95.72 billion in revenue versus the $94.97 billion estimate. Net income rose to nearly $3.0 billion from $2.61 billion a year earlier. Costco earnings beat expectations
• Positive Sentiment: Underlying retail momentum remained solid: fourth-quarter comparable sales increased 9.4%, while digitally enabled comparable sales jumped 19.5%, supported by strength across several merchandise categories. Costco digitally enabled sales growth
• Positive Sentiment: UBS reiterated its Buy rating and $1,275 price target, arguing that strong execution and resilient demand for essentials offset concerns about membership growth. BTIG also reaffirmed its Buy rating with a $1,125 target. UBS reiterates Buy rating
• Neutral Sentiment: Costco’s fourth-quarter EPS included a roughly $0.15-per-share benefit from IEEPA tariff refunds. Although management partially reinvested the benefit into member value, investors may discount the earnings beat because this boost was nonrecurring. Costco fiscal fourth-quarter results
• Negative Sentiment: Membership growth is becoming a key concern because membership fees account for a substantial portion of operating income, while the benefit from Costco’s prior fee increase is beginning to fade. Citi maintained a Hold rating and a $1,020 target, citing a balanced risk-reward profile. Citi maintains Hold rating
• Negative Sentiment: Analysts remain concerned that COST’s elevated valuation leaves little room for disappointment. A separate analysis reiterated a Sell view, suggesting that strong fundamentals are already reflected in the share price. Costco valuation analysis

Wall Street Analyst Weigh In

COST has been the topic of a number of recent research reports. UBS Group reaffirmed a “buy” rating on shares of Costco Wholesale in a research note on Thursday, September 17th. Weiss Ratings cut shares of Costco Wholesale from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, September 2nd. Evercore restated an “outperform” rating on shares of Costco Wholesale in a report on Tuesday. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $1,091.00 price target on shares of Costco Wholesale in a report on Friday, September 4th. Finally, Citigroup initiated coverage on Costco Wholesale in a research report on Thursday, June 18th. They issued a “neutral” rating and a $1,020.00 price target for the company. Twenty-three investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Costco Wholesale currently has an average rating of “Moderate Buy” and a consensus target price of $1,052.65.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.