01—Abstract
Summary
Summary of the 10-K filed October 8, 2025. Cited figures are marked; the original filing is the authoritative source.
Costco Wholesale Corporation (COST) has reported strong performance for the fiscal year ending August 31, 2025, with net sales increasing by 8% to $269.9 billiona.
This growth was driven by a 6%b increase in comparable sales, reflecting higher shopping frequency and a modest increase in average ticket size. Membership fee revenue also saw a significant 10% jump, boosted by new member acquisitions and fee increases, underscoring the continued loyalty and value proposition for Costco members. The company expanded its physical footprint by opening 24 net new warehouses, contributing to overall sales growth.
Despite inflationary pressures impacting merchandise costs, Costco managed to improve its gross margin percentage by 20 basis points, partly due to strong performance in fresh foods and its co-branded credit card program. Net income rose by 10% to $8.1 billion, translating to $18.21c per diluted share. The company also demonstrated a commitment to shareholders through a 12% increase in its quarterly cash dividend.
02—Key points
Key Highlights
- Net sales increased by 8% year-over-year to $269.9 billion, driven by comparable sales growth of 6% and new warehouse openings.
- Membership fee revenue grew by 10%, indicating strong member retention and the success of recent membership fee adjustments.
- The company opened 24 net new warehouses, expanding its global reach and contributing to revenue growth.
- Gross margin percentage improved by 20 basis points to 11.12%, benefiting from strong performance in core merchandise categories and ancillary services.
- Net income saw a robust 10% increase, reaching $8.1 billion, with diluted earnings per share of $18.21.
- Costco declared a 12% increase in its quarterly cash dividend, signaling confidence in its financial health and commitment to returning capital to shareholders.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Costco Wholesale Corp kept $0.03.
- Revenue$275.24B100.0%
- Cost of revenue−$239.89B87.2%
- Gross profit$35.35B12.8%
- Operating costs−$24.97B9.1%
- Operating income$10.38B3.8%
- Interest, other & tax−$2.28B0.8%
- Net income$8.10B2.9%
Where FY2025 revenue went
$275.24B- Cost of revenue: $239.89B, 87% of revenue
- Net income: $8.10B, 2.9% of revenue
- SG&A: $24.97B, 9.1% of revenue
- Interest, other & tax: $2.28B, 0.8% of revenue
Kept 2.9% as net incomeNet income $8.10B · 2.9%Interest, other & tax $2.28B · 0.8%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed October 8, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $275.24B$254.45B | +8.2% |
| Cost of Revenue | $239.89B$222.36B | +7.9% |
| Gross Profit | $35.35B$32.09B | +10.1% |
| SG&A Expenses | $24.97B$22.81B | +9.5% |
| Operating Income | $10.38B$9.29B | +11.8% |
| Interest Expense | $154.00M$169.00M | −8.9% |
| Net Income | $8.10B$7.37B | +9.9% |
| EPS (Basic) | $18.24$16.59 | +9.9% |
| EPS (Diluted) | $18.21$16.56 | +10.0% |
| Shares Outstanding (Basic) | 443.99M443.91M | 0.0% |
| Shares Outstanding (Diluted) | 444.80M444.76M | 0.0% |
05—Questions
Frequently Asked Questions
What was the primary driver of Costco's sales growth in fiscal year 2025?
The primary driver of Costco's sales growth in fiscal year 2025 was a combination of a 6% increase in comparable sales, which reflects higher shopping frequency and a modest increase in average ticket size, along with the revenue generated from the 24 net new warehouses opened during the year.
How did Costco manage its gross margin in the face of rising merchandise costs?
Costco successfully improved its gross margin percentage by 20 basis points to 11.12%. This was achieved through a combination of factors, including strong performance in fresh foods and its co-branded credit card program, as well as strategic pricing and supplier negotiations, despite inflationary pressures on merchandise costs.
What is the outlook for new warehouse openings?
Costco opened 27 new warehouses (24 net new) in fiscal year 2025 and plans to open up to 35 new warehouses (30 net new) in fiscal year 2026. This indicates continued aggressive expansion plans.
How has membership growth and renewal performed?
Membership fee revenue increased by 10% in fiscal year 2025, driven by new member sign-ups and membership fee increases. The company reported strong renewal rates of 92.3% in the U.S. and Canada and 89.8% worldwide, although a higher number of online memberships are renewing at a slightly lower rate on average.
06—Continue