COSTCO WHOLESALE CORP /NEWCOST
COSTCO WHOLESALE CORP /NEW Financial Overview 2021–2025
Costco’s membership fee revenue surged 14% to $1.33 billion in Q1 2026, underscoring the compounding power of a subscription model that generates pure profit independent of merchandise margins. This recurring income stream insulates the bottom line, allowing the company to maintain the aggressive pricing that drives high transaction volume and member loyalty. The long-term trajectory confirms this dominance, as annual net sales climbed from $192.1 billion in FY2021 to $269.9 billion in FY2025, while diluted earnings per share expanded from $11.27 to $18.21 over the same period.
Operational execution remains disciplined even as the global footprint grows. In FY2025, gross margin percentage improved by 20 basis points to 11.12%, translating to net income of $8.1 billion. Recent performance shows no signs of slowing, with comparable sales rising 6% and total revenue hitting $67.3 billion in the first quarter of FY2026. Management continues to prioritize capital returns, deploying a $15.00 special dividend in FY2024 and raising the quarterly payout to $1.30 per share. The market prices this reliability aggressively: at the close of FY2025, the stock traded at $943.32, valuing the enterprise at a steep 51.8x trailing earnings and a market capitalization of $418.1 billion.
Recent Developments (Q4 2025 and Q1 2026)
Costco translated its recent top-line momentum into improved profitability for the first quarter of fiscal 2026, reporting net income of $2.001 billion. This represents earnings of $4.50 per share, up from $4.04 a year earlier. Cash generation remains a standout metric, with the company producing $4.69 billion in operating cash flow during the quarter alone. This liquidity funds ongoing physical expansion; after adding 24 net new locations in fiscal 2025, the company opened 8 warehouses in Q1 and targets 25 total openings for fiscal 2026. Shareholder confidence was reaffirmed in January 2026 as investors re-elected all directors and rejected a proposal regarding a greenwashing risk audit.
The bull case rests on the model's predictable compounding, driven by high renewal rates and aggressive warehouse densification. Conversely, bears highlight valuation risks; although the share price moderated to $862.65 by mid-December 2025, the stock still traded at a premium 47.4x trailing earnings, leaving little room for execution errors.
What to watch: Margin impact from new store openings; executive bonus payouts linked to ESG targets.
Rev
$275.24B
FY2025
NI
$8.10B
FY2025
EPS
$18.24
FY2025
OCF
$13.34B
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
COSTCO WHOLESALE CORP /NEW 8-K Report, Shareholder Vote Results (Jan 21, 2026)
Costco Wholesale Corporation (COST) has filed an 8-K report detailing the outcomes of its Annual Meeting of Shareholders held on January 15, 2026. The key takeaway for investors is the strong shareholder support for the company's leadership and financial oversight. All nominated directors were re-elected, indicating continued confidence in the current board's strategic direction. Furthermore, shareholders overwhelmingly ratified the selection of KPMG LLP as the independent auditor for fiscal year 2026, a crucial vote of confidence in the company's financial reporting integrity. In addition to governance matters, the report highlights the company's commitment to returning value to shareholders through a declared quarterly cash dividend of $1.30 per share, payable in February 2026. While a shareholder proposal regarding a greenwashing risk audit was not approved, the overwhelming success of the other voting items suggests a stable and supportive shareholder base focused on operational and financial performance.
COSTCO WHOLESALE CORP /NEW 8-K Report, Financial Results (Dec 11, 2025)
Costco Wholesale Corporation /New (COST) has filed an 8-K report on December 11, 2025, detailing its operating results for the first quarter of fiscal year 2026, which concluded on November 23, 2025. The report primarily serves to attach the press release (Exhibit 99.1) and supplemental information (Exhibit 99.2) related to these Q1 FY2026 results. While the 8-K itself does not contain the specific financial figures, investors are directed to the attached exhibits for a comprehensive understanding of the company's performance. These documents are expected to outline key metrics such as revenue, net income, comparable sales, and other operational data, providing crucial insights into Costco's recent business trajectory and its ability to meet market expectations. Investors should carefully review these exhibits to assess the company's financial health and future outlook.
COSTCO WHOLESALE CORP /NEW 8-K Report, Executive Changes (Oct 20, 2025)
Costco Wholesale Corporation (COST) has filed an 8-K report detailing the approved fiscal year 2026 bonus criteria for its executive officers. The Compensation Committee and Nominating and Governance Committee have established performance targets for both financial and environmental/social objectives, which will influence executive bonuses. This filing provides investors with insight into how executive compensation is structured and linked to the company's performance and strategic priorities for the upcoming fiscal year.
COSTCO WHOLESALE CORP /NEW 8-K Report, Corporate Update (Oct 15, 2025)
Costco Wholesale Corporation (COST) announced a quarterly cash dividend on its common stock. The Board of Directors declared a dividend of $1.30 per share, payable on November 14, 2025, to shareholders of record as of the close of business on October 31, 2025. This action reflects the company's ongoing commitment to returning value to its shareholders.
COSTCO WHOLESALE CORP /NEW 8-K Report, Financial Results (Sep 25, 2025)
Costco Wholesale Corporation (COST) filed an 8-K report on September 24, 2025, announcing its operating results for the 16-week fourth quarter and the 52-week fiscal year, both ended August 31, 2025. This filing primarily serves to attach the press release containing these financial results as Exhibit 99.1 and supplemental information as Exhibit 99.2. Investors should refer to these attached documents for detailed financial performance, including key metrics such as revenue, net income, and comparable store sales for both the quarter and the full fiscal year. The attached press release and supplemental information are crucial for understanding Costco's recent performance and future outlook. Investors will be looking for trends in sales growth, membership trends, and any commentary on economic conditions or strategic initiatives that may impact the business. While the 8-K itself is brief, it directs stakeholders to the comprehensive financial data that will inform investment decisions regarding COST.
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