Summary
Costco Wholesale Corporation (COST) reported solid financial results for the first quarter of fiscal year 2026, ending November 23, 2025. The company demonstrated robust top-line growth with total revenue increasing by 8% year-over-year to $67.3 billion, driven by an 8% rise in net sales and a significant 14% increase in membership fee revenue. This growth was supported by an 8% increase in net sales, fueled by comparable sales growth and the contribution of 25 net new warehouses opened since the prior year. Diluted earnings per share rose to $4.50 from $4.04 in the comparable prior-year period, reflecting improved profitability. The company's financial health remains strong, with substantial operating cash flow generation and a healthy liquidity position. Costco continues its strategic expansion, opening eight new warehouses in the quarter, with plans for 25 more. The consistent membership fee growth underscores customer loyalty and provides a stable revenue stream. While facing typical retail pressures such as rising costs and competition, Costco's ability to drive comparable sales through increased shopping frequency and average ticket, combined with disciplined expense management, positions it favorably for continued performance.
Financial Highlights
47 data points| Revenue | $67.31B |
| Cost of Revenue | $58.51B |
| Gross Profit | $8.80B |
| SG&A Expenses | $6.33B |
| Operating Income | $2.46B |
| Interest Expense | $35.00M |
| Net Income | $2.00B |
| EPS (Basic) | $4.51 |
| EPS (Diluted) | $4.50 |
| Shares Outstanding (Basic) | 443.96M |
| Shares Outstanding (Diluted) | 444.51M |
Key Highlights
- 1Total revenue grew 8% to $67.3 billion for the 12 weeks ended November 23, 2025, compared to $62.2 billion for the same period last year.
- 2Net income increased to $2.001 billion ($4.50 per diluted share) from $1.798 billion ($4.04 per diluted share) in the prior year's quarter.
- 3Membership fee revenue saw a substantial 14% increase, reaching $1.329 billion, indicating strong member retention and growth.
- 4Comparable sales increased by 6% year-over-year, with contributions from both increased shopping frequency and average ticket size.
- 5Costco opened eight new warehouses (seven net new) in the quarter, contributing to overall sales growth, and plans to open 25 more in the remainder of fiscal 2026.
- 6The company maintained strong operating cash flow, generating $4.688 billion during the quarter, reflecting operational efficiency.
- 7A quarterly cash dividend of $1.30 per share was declared, up from $1.16 per share in the prior year's comparable quarter.