# Costco Wholesale Corporation (COST) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/COST/thesis · /stocks/COST/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/COST/fundamental

## Navigation

- Overview: /stocks/COST
- Financials (this page): /stocks/COST/financials
- Thesis: /stocks/COST/thesis
- Investment Memo: /stocks/COST/memo
- Coverage universe: /stocks