How much of Costco's reported sales growth came from gasoline prices and currency effects?

Reported total company comparable sales grew 9.8%, but excluding changes in gasoline prices and foreign exchange, growth was 6.6%. Roughly 3.2 percentage points of the reported comp therefore came from those two factors. Net sales growth of 11.6% is also reported on a total basis and is not adjusted in the filing.

Did Costco's profitability improve in the quarter?

Net income and EPS grew about 15%, but this came mainly from sales growth and higher membership fees rather than margin expansion. Reported gross margin declined 21 basis points to 11.04%, and SG&A rose 20 basis points to 8.96%. Operating income grew about 11% to $2.82B. Excluding gasoline, gross margin was roughly flat, so the reported decline largely reflects fuel mix.

Is the membership model still healthy?

Yes, based on the disclosed metrics. Membership fees rose 10.7% to $1.37B, the worldwide renewal rate was 89.7%, and the U.S./Canada renewal rate was 92.2%. Total cardholders reached 148.5 million, up 4.0%, and paid memberships reached 82.9 million, up 4.1%. The filing does not provide a prior-period renewal rate for comparison.

How is Costco funding its growth and shareholder returns?

Year-to-date operating cash flow was $11.1B against $4.2B of capital expenditures, leaving substantial free cash flow. The company paid $1.15B in dividends and repurchased $603M of stock over 36 weeks, and cash and equivalents rose to $18.9B. Long-term debt was roughly flat at $5.7B, so the company is funding growth mostly from operations.

What does the warehouse expansion outlook look like?

The supplemental materials show 7 openings in Q1, 3 in Q2, and 4 in Q3, with 12 more estimated for the remainder of fiscal 2026. That would bring the network to about 940 warehouses, up from 914 at the end of fiscal 2025, with the largest additions in the U.S. (11 of the 12 remaining openings are U.S. or Canada and Other International combined, at 11 U.S. openings and 1 Other International). Investors should monitor whether openings stay on schedule, since they drive future net sales growth.

COST 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed May 28, 2026. Cited figures are marked; the original filing is the authoritative source.

Costco reported third-quarter fiscal 2026 results (twelve weeks ended May 10, 2026) that show strong top-line momentum and solid profit growth.

Net sales rose 11.6% to $69.15 billion^a, and total revenue rose 11.6% to $70.53 billion, helped by membership fees up 10.7% to $1.37 billion. Net income grew 15.2% to $2.19 billion, or $4.93 per diluted share, versus $4.28 a year earlier. Comparable sales grew 9.8% company-wide, but about 3.2 points of that reflects gasoline price and foreign exchange effects.

Excluding those effects, comparable sales grew 6.6%^b, with traffic up 2.4% and adjusted ticket up 4.2%. Digitally-enabled comparable sales rose 21.5% (20.8% adjusted), and e-commerce site and app traffic rose 37%. Profitability was steady rather than expanding.

Reported gross margin was 11.04%^c, down 21 basis points, though only 1 basis point lower excluding gasoline effects, and the core merchandise margin decline was roughly 46 basis points before adjustments. SG&A rose to 8.96% of sales, up 20 basis points, or 2 basis points excluding gasoline. Membership quality remained high, with a 89.7% worldwide renewal rate, a 92.2% U.S. and Canada renewal rate, 148.5 million total cardholders, and 41.2 million executive members.

Over the first 36 weeks, net sales rose 9.6% and diluted EPS reached $14.01^d, up from $12.34. Balance sheet and cash flow remain strong. Cash and equivalents increased to $18.9 billion, and year-to-date operating cash flow was $11.1 billion against $4.2 billion of capital expenditures, which supports continued expansion.

Management's warehouse pipeline shows 12 openings estimated for the remainder of fiscal 2026, which would bring the network to 940 locations. Investors should weigh the strong sales and membership trends against a modest margin pressure and the reliance on gasoline prices and currency for part of the reported growth.

02—Key points

Key Highlights

Net sales rose 11.6% to $69.15B in Q3 FY2026; first 36 weeks rose 9.6% to $203.37B.
Net income increased 15.2% to $2.19B; diluted EPS of $4.93 versus $4.28 last year.
Total company comparable sales were +9.8% reported and +6.6% excluding gasoline and FX; U.S. adjusted comp was +6.8%, Canada +6.2%, Other International +5.9%.
Digitally-enabled comparable sales grew 21.5% (20.8% adjusted), with e-commerce site and app traffic up 37%.
Membership fees increased 10.7% to $1.37B; worldwide renewal rate was 89.7% and U.S./Canada renewal was 92.2%, with 41.2M executive members.
Gross margin fell 21 bps to 11.04% (roughly flat excluding gasoline), while SG&A rose 20 bps to 8.96% of sales.
Year-to-date operating cash flow was $11.1B, cash rose to $18.9B, and the company estimates 12 more warehouse openings in the rest of FY2026, ending at about 940.

03—Questions

Frequently Asked Questions

How much of Costco's reported sales growth came from gasoline prices and currency effects?
Reported total company comparable sales grew 9.8%, but excluding changes in gasoline prices and foreign exchange, growth was 6.6%. Roughly 3.2 percentage points of the reported comp therefore came from those two factors. Net sales growth of 11.6% is also reported on a total basis and is not adjusted in the filing.
Did Costco's profitability improve in the quarter?
Net income and EPS grew about 15%, but this came mainly from sales growth and higher membership fees rather than margin expansion. Reported gross margin declined 21 basis points to 11.04%, and SG&A rose 20 basis points to 8.96%. Operating income grew about 11% to $2.82B. Excluding gasoline, gross margin was roughly flat, so the reported decline largely reflects fuel mix.
Is the membership model still healthy?
Yes, based on the disclosed metrics. Membership fees rose 10.7% to $1.37B, the worldwide renewal rate was 89.7%, and the U.S./Canada renewal rate was 92.2%. Total cardholders reached 148.5 million, up 4.0%, and paid memberships reached 82.9 million, up 4.1%. The filing does not provide a prior-period renewal rate for comparison.
How is Costco funding its growth and shareholder returns?
Year-to-date operating cash flow was $11.1B against $4.2B of capital expenditures, leaving substantial free cash flow. The company paid $1.15B in dividends and repurchased $603M of stock over 36 weeks, and cash and equivalents rose to $18.9B. Long-term debt was roughly flat at $5.7B, so the company is funding growth mostly from operations.
What does the warehouse expansion outlook look like?
The supplemental materials show 7 openings in Q1, 3 in Q2, and 4 in Q3, with 12 more estimated for the remainder of fiscal 2026. That would bring the network to about 940 warehouses, up from 914 at the end of fiscal 2025, with the largest additions in the U.S. (11 of the 12 remaining openings are U.S. or Canada and Other International combined, at 11 U.S. openings and 1 Other International). Investors should monitor whether openings stay on schedule, since they drive future net sales growth.

04—Continue

← View all 8-K filings