Costco Wholesale Corporation

COST
Financial 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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