How much of the Q4 earnings growth came from one-time items?

The $0.15 per diluted share benefit from IEEPA tariff refunds, net of partial reinvestment in member prices, was non-recurring. Reported Q4 EPS grew 15.0% to $6.75. Excluding the benefit, net income grew about 12.3% and EPS about 12.4%.

Is comparable sales growth driven by traffic or spending per visit?

Both contributed. Adjusted Q4 comparable sales of 6.7% reflected traffic growth of 3.3% and adjusted ticket growth of 3.3%. In the U.S., adjusted comps of 7.2% were split between 3.2% traffic and 3.9% ticket.

How healthy is the membership base?

Membership remained strong. Total cardholders reached 150.4 million, up 3.6%, and executive members totaled 42.3 million. Worldwide renewal was 89.8%, and U.S. and Canada renewal was 92.3%. Executive members accounted for 75.6% of sales penetration.

Is margin pressure a concern?

Reported gross margin declined 11 basis points to 11.02%, and SG&A rose 27 basis points to 8.94%. Excluding gasoline price effects, gross margin improved 20 basis points, while SG&A was nearly flat at +2 basis points. Gasoline price swings were a major driver of the reported figures.

COST 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed September 24, 2026. Cited figures are marked; the original filing is the authoritative source.

Costco reported fourth-quarter fiscal 2026 results (16 weeks ended August 30, 2026) and full-year results (52 weeks).

Q4 net sales rose 11.2% to $93.9 billion^a, and total revenue rose 11.1% to $95.7 billion including membership fees of $1.85 billion, up 7.3%. Q4 net income was $3.0 billion, or $6.75 per diluted share, up from $5.87 a year earlier. Management said the quarter included a non-recurring $0.15 per diluted share benefit from IEEPA tariff refunds, net of partial reinvestment in member prices.

Excluding that benefit, net income grew about 12.3% and EPS about 12.4%. For the full year, net sales grew 10.1% to $297.2 billion^b and diluted EPS rose 14.0% to $20.76. Comparable sales were strong.

Total company comparable sales grew 9.4%^c in Q4, or 6.7% excluding gasoline prices and foreign exchange, with U.S. adjusted comps at 7.2%. Traffic grew 3.3% and adjusted ticket grew 3.3%. Digitally-enabled comparable sales rose 19.5%, or 19.8% excluding FX.

Engagement metrics held up: worldwide renewal was 89.8%^d, U.S. and Canada renewal was 92.3%, and total cardholders reached 150.4 million, up 3.6%. Gross margin fell 11 basis points to 11.02% as reported but improved 20 basis points excluding gasoline, and SG&A rose 27 basis points to 8.94%, or 2 basis points excluding gasoline. Balance sheet and cash flow remained solid.

Full-year operating cash flow was $15.8 billion, up from $13.3 billion, and capital expenditures rose to $6.4 billion, reflecting continued expansion. Cash and equivalents increased to $20.2 billion against total debt of about $6.2 billion. The company ended the year with 939 warehouses and expects 967 by the end of fiscal 2027.

Shareholder returns included $2.5 billion in dividends and $0.8 billion in buybacks. The filing itself is an earnings release under Item 2.02 and contains no new guidance beyond the warehouse opening plan.

02—Key points

Key Highlights

Q4 FY2026 net sales grew 11.2% to $93.9B; full-year net sales grew 10.1% to $297.2B
Q4 diluted EPS of $6.75 (+15.0%) included a non-recurring $0.15 benefit from IEEPA tariff refunds; excluding it, EPS grew about 12.4%
Total company comparable sales were +9.4% reported and +6.7% adjusted for gasoline and FX; digitally-enabled comps grew 19.5%
Membership fees rose to $1.85B in Q4 (+7.3%), with 150.4M cardholders (+3.6%) and a 89.8% worldwide renewal rate
Q4 gross margin was 11.02% (down 11 bps reported, up 20 bps ex-gasoline); SG&A was 8.94%, up 27 bps reported
Full-year operating cash flow reached $15.8B, while capex rose to $6.4B to support expansion to 967 warehouses expected by FY2027 end
Cash of $20.2B exceeded total debt of roughly $6.2B, and the company returned $2.5B in dividends and $0.8B in buybacks

03—Questions

Frequently Asked Questions

How much of the Q4 earnings growth came from one-time items?
The $0.15 per diluted share benefit from IEEPA tariff refunds, net of partial reinvestment in member prices, was non-recurring. Reported Q4 EPS grew 15.0% to $6.75. Excluding the benefit, net income grew about 12.3% and EPS about 12.4%.
Is comparable sales growth driven by traffic or spending per visit?
Both contributed. Adjusted Q4 comparable sales of 6.7% reflected traffic growth of 3.3% and adjusted ticket growth of 3.3%. In the U.S., adjusted comps of 7.2% were split between 3.2% traffic and 3.9% ticket.
How healthy is the membership base?
Membership remained strong. Total cardholders reached 150.4 million, up 3.6%, and executive members totaled 42.3 million. Worldwide renewal was 89.8%, and U.S. and Canada renewal was 92.3%. Executive members accounted for 75.6% of sales penetration.
Is margin pressure a concern?
Reported gross margin declined 11 basis points to 11.02%, and SG&A rose 27 basis points to 8.94%. Excluding gasoline price effects, gross margin improved 20 basis points, while SG&A was nearly flat at +2 basis points. Gasoline price swings were a major driver of the reported figures.

04—Continue

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