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COSTCO WHOLESALE CORP /NEW 8-K Report, Financial Results (Sep 25, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed September 25, 2025
Period End
September 25, 2025
Security
COST
In the record · 2016–202610-K1210-Q328-K130

COST filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 130 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Nov ’22Nov ’22
  2. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed September 25, 2025. Cited figures are marked; the original filing is the authoritative source.

Costco reported fiscal 2025 fourth-quarter results (16 weeks ended August 31, 2025) and full-year results (52 weeks), furnished under Item 2.02 of Form 8-K.

Q4 net sales rose 8.0% to $84.4 billiona, and total revenue rose 8.1% to $275.2 billion for the fiscal year. Growth came from both traffic and ticket. Adjusted for gasoline prices and foreign exchange, Q4 total company comparable sales grew 6.4% and fiscal-year comparable sales grew 7.6%.

Reported comparable sales were 5.7% for Q4 and 5.9% for the year. Membership fee income was a notable driver: Q4 membership fees rose 14.0% to $1.72 billionb, with 81.0 million paid memberships (up 6.3%) and a 89.8% worldwide renewal rate. Diluted EPS was $5.87 in Q4, up 11.0%, and $18.21 for the year, up 9.9%.

Operating income grew 11.8% for the year to $10.4 billionc. Profitability and cash generation were solid. Q4 gross margin was 11.13%, up 13 basis points, and SG&A was 9.21% of sales, up 17 basis points.

Operating cash flow for the year was $13.3 billiond, up from $11.3 billion, while capital expenditures increased to $5.5 billion from $4.7 billion, leaving free cash flow of roughly $7.8 billion versus $6.6 billion a year earlier. Cash and equivalents ended the year at $14.2 billion, compared with $9.9 billion, and long-term debt stood at $5.7 billion. Year-over-year cash dividend payments fell to $2.2 billion from $9.0 billion, because the prior year included a large special dividend.

Share repurchases totaled $903 million for the year. The company ended the year with 914 warehouses, adding 24 during fiscal 2025, and expects to reach 944 by the end of fiscal 2026.

E-commerce comparable sales grew 13.6% in Q4 and 15.6% for the year, supported by site traffic growth of 27% in Q4. Investors should note that the filing contains earnings results only and no new guidance, and that year-over-year comparisons for dividends and tax items are distorted by the prior-year special dividend and a one-time tax benefit.

02—Key points

Key Highlights

  1. Q4 net sales rose 8.0% to $84.4 billion; fiscal-year net sales rose 8.1% to $269.9 billion.
  2. Adjusted total company comparable sales grew 6.4% in Q4 and 7.6% for the fiscal year, excluding gasoline and FX impacts (reported: 5.7% and 5.9%).
  3. Membership fees grew 14.0% in Q4 to $1.72 billion, with 81.0 million paid memberships and a 89.8% worldwide renewal rate.
  4. Q4 diluted EPS was $5.87, up 11.0% year over year; fiscal-year diluted EPS was $18.21, up 9.9%.
  5. E-commerce comparable sales grew 13.6% in Q4 and 15.6% for the fiscal year, with e-commerce site traffic up 27% in Q4.
  6. Operating cash flow rose to $13.3 billion from $11.3 billion, while capex increased to $5.5 billion, supporting expansion to 944 warehouses targeted by end of fiscal 2026.
  7. Cash ended the year at $14.2 billion, up from $9.9 billion, and the prior-year $9 billion special dividend distorts the year-over-year dividend comparison.

03—Questions

Frequently Asked Questions

  1. How did Costco perform in the fourth quarter of fiscal 2025?

    Net sales rose 8.0% to $84.4 billion, operating income rose about 9.8% to $3.34 billion, and net income reached $2.61 billion, or $5.87 per diluted share, up 11.0%. Adjusted total company comparable sales grew 6.4%, and membership fee income grew 14.0%.

  2. What do the comparable sales figures indicate about underlying demand?

    Adjusted comparable sales excluding gasoline and foreign exchange grew 6.4% in Q4 and 7.6% for the full year, with U.S. adjusted comps at 6.0% in Q4. Q4 traffic grew 3.7% company-wide, and ticket grew 2.6% on an adjusted basis, indicating growth from both more transactions and higher spending per trip.

  3. Why did cash dividend payments fall sharply, and does that signal a problem?

    Dividend payments fell to $2.2 billion from $9.0 billion because fiscal 2024 included a large special dividend. The drop reflects the timing of that prior-year payment rather than a deterioration in the business. Cash flow from operations and cash balances both increased.

  4. What is the outlook for warehouse growth and capital spending?

    Costco ended fiscal 2025 with 914 warehouses, up from 890, and expects 944 by the end of fiscal 2026. Capital spending rose to $5.5 billion for the year from $4.7 billion. The filing itself does not provide formal guidance beyond this warehouse count target.

  5. Is this 8-K a regulatory event that requires action from investors?

    No. The filing is an earnings release furnished under Item 2.02, which means it is not treated as filed for liability purposes under the Exchange Act. It is informational and contains no new guidance, transaction, or material agreement.

04—Continue

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