Costco Wholesale Corporation Reports First Quarter Fiscal Year 2026 Operating Results

Costco Wholesale (Nasdaq: COST) reported first quarter fiscal 2026 results for the 12 weeks ended November 23, 2025.

Rhea-AI Summary

Costco Wholesale (Nasdaq: COST) reported first quarter fiscal 2026 results for the 12 weeks ended November 23, 2025. Net sales rose 8.2% to $65.98B. Comparable sales were +6.4% companywide and digitally-enabled sales +20.5%. Net income was $2,001M ($4.50 diluted EPS) vs $1,798M ($4.04) a year earlier. Operating income increased to $2,463M. Membership fees grew to $1,329M. Cash and cash equivalents ended at $16,217M, and net cash provided by operating activities was $4,688M.

The company operated 923 warehouses globally and scheduled a conference call December 11, 2025.

Positive

• Net sales +8.2% to $65.98B
• Total company comparable sales +6.4% (12 weeks)
• Digitally-enabled comparable sales +20.5%
• Net income +11.3% to $2,001M; diluted EPS $4.50
• Net cash from operations $4,688M (up from $3,260M)

Negative

• Merchandise inventories +16.7% to $21,141M (potential inventory build)
• Accounts payable +18.8% to $23,513M (working capital increase)

Market Context

This announcement highlights Costco’s continued scale and profitability, with Q1 net sales of $65.98...

Analysis

This announcement highlights Costco’s continued scale and profitability, with Q1 net sales of $65.98 billion, net income of $2,001 million, and 6.4% total comparable sales growth, including 20.5% digitally‑enabled gains. The balance sheet shows $16,217 million in cash and equivalents and strong operating cash flow. Investors may monitor future quarters for membership trends, comparable‑sales momentum by region, and how operating expenses and real‑estate investments affect margins and cash generation.

Key Figures

Q1 2026 Net sales: $65.98 billion Q1 2026 Net income: $2,001 million Diluted EPS: $4.50 per share +5 more

Q1 2026 Net sales

$65.98 billion

12 weeks ended November 23, 2025; up 8.2% year-over-year

Q1 2026 Net income

$2,001 million

12 weeks ended November 23, 2025; vs. $1,798 million last year

Diluted EPS

$4.50 per share

Q1 fiscal 2026; vs. $4.04 per diluted share last year

Total company comparable sales

6.4%

Q1 fiscal 2026, reported and adjusted basis

Digitally-enabled sales growth

20.5%

Comparable sales, Q1 fiscal 2026

Membership fees

$1,329 million

Q1 fiscal 2026; vs. $1,166 million last year

Cash and cash equivalents

$16,217 million

Balance sheet as of November 23, 2025

Net cash from operations

$4,688 million

12 weeks ended November 23, 2025; vs. $3,260 million last year

Historical Context

5 past events · Latest: Dec 04

5 events

1. Dec 04

   Board nomination

   24h Move

   +0.1%

   Nomination of Gina Raimondo to Costco’s Board of Directors.

2. Dec 03

   Monthly sales update

   24h Move

   -3.0%

   Strong November and Q1 sales growth with solid comparable sales.

3. Nov 05

   Monthly sales update

   24h Move

   -1.2%

   October sales up 8.6% with healthy total and digital comps.

4. Oct 15

   Dividend declaration

   24h Move

   -3.1%

   Announcement of a $1.30 per share quarterly cash dividend.

5. Oct 08

   Monthly sales update

   24h Move

   +3.1%

   September sales up 8.0% with strong digitally‑enabled growth.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

comparable sales, forward-looking statements, U.S. GAAP

3 terms

comparable sales financial

"Comparable sales for the first quarter fiscal 2026 were as follows:"

"Comparable sales" are the total sales from stores or products that have been open for a certain period, usually the same time last year or last quarter. They help show whether a business is growing by comparing similar locations or products over time, much like checking if your favorite store's sales are going up compared to previous years.

forward-looking statements regulatory

"Certain statements contained in this document constitute forward-looking statements within the meaning..."

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

U.S. GAAP financial

"are not a substitute for net sales presented in accordance with U.S. GAAP."

U.S. GAAP is a set of rules and standards that companies in the United States follow to prepare their financial reports. It helps ensure that financial information is consistent and clear, so investors and others can compare and understand a company's financial health easily.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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ISSAQUAH, Wash., Dec. 11, 2025 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the first quarter of fiscal 2026 (twelve weeks), ended November 23, 2025.

Net sales for the first quarter increased 8.2 percent, to $65.98 billion from $60.99 billion last year.

Comparable sales for the first quarter fiscal 2026 were as follows:

		12 Weeks		12 Weeks
				Adjusted*
	U.S.	5.9%		5.9%
	Canada	6.5%		9.0%
	Other International	8.8%		6.8%
	Total Company	6.4%		6.4%
	Digitally-Enabled	20.5%		20.5%

*Excluding the impacts from changes in gasoline prices and foreign exchange.

Net income for the quarter was $2,001 million, $4.50 per diluted share, compared to $1,798 million, $4.04 per diluted share, last year. This year’s results included a tax benefit of $72 million, $0.16 per diluted share, related to stock-based compensation, which last year was $100 million, $0.22 per diluted share.

Costco currently operates 923 warehouses, including 633 in the United States and Puerto Rico, 114 in Canada, 42 in Mexico, 37 in Japan, 29 in the United Kingdom, 20 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, three in France, two in Sweden, and one each in Iceland, and New Zealand. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, December 11, 2025, and is available via a webcast on investor.costco.com (click “Events & Presentations”).

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. In some cases forward-looking statements can be identified because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, inflation or deflation, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, breaches of security or privacy of member or business information, conditions affecting the acquisition, development, ownership or use of real estate, capital spending, actions of vendors, rising costs associated with employees (generally including health-care costs and wages), workforce interruptions, energy and certain commodities, geopolitical conditions (including tariffs), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to environmental and social matters, public-health related factors, and other risks identified from time to time in the Company’s public statements and reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and the Company does not undertake to update these statements, except as required by law. Comparable sales and comparable sales excluding impacts from changes in gasoline prices and foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with U.S. GAAP.        

CONTACTS:	Costco Wholesale Corporation
	Josh Dahmen, 425/313-8254
	Andrew Yoon, 425/313-6305

COST-Earn

COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF INCOME (dollars in millions, except per share data) (unaudited)
	12 Weeks Ended
	November 23, 2025				November 24, 2024
REVENUE
Net sales	$	65,978			$	60,985
Membership fees		1,329				1,166
Total revenue		67,307				62,151
OPERATING EXPENSES
Merchandise costs		58,510				54,109
Selling, general and administrative		6,334				5,846
Operating income		2,463				2,196
OTHER INCOME (EXPENSE)
Interest expense		(35	)			(37	)
Interest income and other, net		155				147
INCOME BEFORE INCOME TAXES		2,583				2,306
Provision for income taxes		582				508
NET INCOME	$	2,001			$	1,798
NET INCOME PER COMMON SHARE:
Basic	$	4.51			$	4.05
Diluted	$	4.50			$	4.04
Shares used in calculation (000’s):
Basic		443,961				443,988
Diluted		444,515				444,891

COSTCO WHOLESALE CORPORATION CONSOLIDATED BALANCE SHEETS  (amounts in millions, except par value and share data) (unaudited)
Subject to Reclassification
			November 23, 2025				August 31, 2025
ASSETS
CURRENT ASSETS
Cash and cash equivalents			$	16,217			$	14,161
Short-term investments				966				1,123
Receivables, net				3,231				3,203
Merchandise inventories				21,141				18,116
Other current assets				1,856				1,777
Total current assets				43,411				38,380
OTHER ASSETS
Property and equipment, net				32,616				31,909
Operating lease right-of-use assets				2,730				2,725
Other long-term assets				4,033				4,085
TOTAL ASSETS			$	82,790			$	77,099
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable			$	23,513			$	19,783
Accrued salaries and benefits				5,172				5,205
Accrued member rewards				2,712				2,677
Deferred membership fees				2,990				2,854
Other current liabilities				7,418				6,589
Total current liabilities				41,805				37,108
OTHER LIABILITIES
Long-term debt, excluding current portion				5,666				5,713
Long-term operating lease liabilities				2,436				2,460
Other long-term liabilities				2,580				2,654
TOTAL LIABILITIES				52,487				47,935
COMMITMENTS AND CONTINGENCIES
EQUITY
Preferred stock $0.005 par value; 100,000,000 shares authorized; no shares issued and outstanding				—				—
Common stock $0.005 par value; 900,000,000 shares authorized; 443,919,000 and 443,237,000 shares issued and outstanding				2				2
Additional paid-in capital				8,408				8,282
Accumulated other comprehensive loss				(1,976	)			(1,770	)
Retained earnings				23,869				22,650
TOTAL EQUITY				30,303				29,164
TOTAL LIABILITIES AND EQUITY			$	82,790			$	77,099

COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  (amounts in millions) (unaudited)
Subject to Reclassification
	12 Weeks Ended
	November 23, 2025				November 24, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	2,001			$	1,798
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		597				548
Non-cash lease expense		75				72
Stock-based compensation		486				463
Other non-cash operating activities, net		(5	)			(72	)
Changes in working capital		1,534				451
Net cash provided by operating activities		4,688				3,260
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment		(1,526	)			(1,264	)
Purchases of short-term investments		(195	)			(247	)
Maturities of short-term investments		340				541
Other investing activities, net		(17	)			(15	)
Net cash used in investing activities		(1,398	)			(985	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of short-term borrowings		—				(194	)
Proceeds from short-term borrowings		—				133
Tax withholdings on stock-based awards		(357	)			(389	)
Repurchases of common stock		(210	)			(207	)
Cash dividend payments		(577	)			(515	)
Financing lease payments and other financing activities, net		(23	)			(21	)
Net cash used in financing activities		(1,167	)			(1,193	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(67	)			(81	)
Net change in cash and cash equivalents		2,056				1,001
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR		14,161				9,906
CASH AND CASH EQUIVALENTS END OF PERIOD	$	16,217			$	10,907

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Costco (COST) first quarter fiscal 2026 net sales and growth?

Costco reported $65.98B net sales for Q1 fiscal 2026, a +8.2% increase versus last year.

How did Costco (COST) comparable sales perform in Q1 2026?

Total company comparable sales were +6.4% for the 12-week first quarter; digitally-enabled sales were +20.5%.

What was Costco's (COST) Q1 2026 net income and EPS?

Net income was $2,001M, and diluted EPS was $4.50 for the first quarter.

How much cash did Costco (COST) have at the end of Q1 fiscal 2026?

Cash and cash equivalents were $16,217M at November 23, 2025.

Did Costco (COST) report any notable balance-sheet changes in Q1 2026?

Yes; merchandise inventories rose to $21,141M and accounts payable increased to $23,513M.

How much did Costco (COST) collect in membership fees in Q1 fiscal 2026?

Membership fee revenue was $1,329M for the quarter.