Costco Wholesale Corporation
COSTFinancial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$68.2B
Q2 FY2026 · +7.1% YoY
TTM ROIC
28.5%
FY2025 · NOPAT / Invested Capital (NOPAT = Operating income × (1 - tax rate); Invested Capital = equity + debt - cash) · WACC ~7.5% · Moat spread +20.5pp
Financial Snapshot
ticker: COST step: 04 generated: 2026-05-11 source: quick-research
Costco Wholesale Corporation (COST) — Financial Snapshot
Note: Costco's fiscal year ends in late August. "FY2025" = fiscal year ended Aug 31, 2025.
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $242.3B | $254.5B | $275.2B | +8.2% |
| Comparable Sales (ex-gas/FX) | +5.0% | +5.2% | +7.0% | |
| Gross Margin (ex-gas) | 11.0% | 11.2% | 11.4% | +0.2pp |
| Operating Margin | 3.4% | 3.5% | 3.7% | +0.2pp |
| Net Income | $6.29B | $7.37B | $8.10B | +10% |
| EPS (diluted) | $14.16 | $16.56 | $18.20 | +10% |
| Membership Fee Income | $4.58B | $4.83B | $5.30B | +10% |
Q2 FY2026 Highlights (most recent reported)
| Metric | Q2 FY26 | YoY Change |
|---|---|---|
| Total Revenue | $69.6B | +9% |
| Comparable Sales (ex-gas/FX) | +7.4% | accelerating |
| Digital Comp Sales | +22.6% | |
| Net Income | $2.04B | +14% |
| EPS (diluted) | $4.58 | +14% |
| Membership Fees | $1.36B | +13.6% |
| Renewal Rate (US/Canada) | 92.3% | -50bps vs. peak |
| Paid Memberships | 82.1M | +5% |
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$12B |
| Capital Expenditures | ~($4.5B) (warehouses + IT) |
| Free Cash Flow | ~$7.5B |
| Cash & Equivalents | ~$14B |
| Short-term Investments | ~$4B |
| Total Debt | ~$5B (very low for retailer of this scale) |
Key Ratios (approximate, May 2026)
- P/E (forward): ~46x | EV/EBITDA: ~28x | Dividend Yield: ~0.55%
- Special dividends: COST has paid 5 special dividends totaling $40+/share historically
- ROIC: ~28% (best-in-class in retail)
- Inventory Turns: ~12x (vs. ~7x for Walmart, ~5x for Target)
Growth Profile
Costco is in the rare combo of mature scale + accelerating comparable sales. Q2 FY26 comp of 7.4% (digital +22.6%) reflects executive memberships (75.8% of sales), Kirkland Signature share gains, and tariff-resistant supply chain. The 2024 membership fee hike to $130 Executive / $65 Gold Star drove ~33% of membership growth in subsequent quarters with only 0.1% renewal decline — a textbook demonstration of pricing power.
Forward Estimates
- FY2026E Revenue: ~$297B (+8%)
- FY2026E EPS: ~$20.00 (+10%)
- FY2027E Revenue: ~$320B (+8%)
- FY2027E EPS: ~$22.50 (+12%)
- Warehouse count FY2026 target: 942 (+28-35 net)
Capital Return
- Regular dividend ~$5.20/share annual ($2.3B), grown 17+ consecutive years
- Periodic special dividends ($15/share most recently in Jan 2024)
- Minimal buybacks (~$1-2B annually) — capital allocated mainly to warehouse buildouts
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $COST.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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