Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2025 Operating Results

Rhea-AI Summary

Costco (NASDAQ: COST) reported strong financial results for Q4 and fiscal year 2025. Net sales for Q4 increased 8.0% to $84.4 billion, while fiscal year sales grew 8.1% to $269.9 billion. The company's Q4 net income rose to $2.61 billion ($5.87 per diluted share), up from $2.35 billion ($5.29 per diluted share) year-over-year.

Total company comparable sales grew 5.7% in Q4 and 5.9% for the fiscal year, with e-commerce showing robust growth of 13.6% and 15.6% respectively. Membership fees revenue increased to $1.72 billion in Q4 and $5.32 billion for the full year. The company now operates 914 warehouses globally, with significant presence across 13 countries.

Positive

• Net sales increased 8.0% to $84.4 billion in Q4 2025
• Q4 net income grew to $2.61 billion, up 10.9% year-over-year
• E-commerce sales showed strong growth of 13.6% in Q4
• Membership fee revenue increased to $1.72 billion in Q4, up from $1.51 billion
• Cash and cash equivalents increased to $14.16 billion from $9.91 billion year-over-year
• Operating income rose to $3.34 billion in Q4, up from $3.04 billion

Negative

• Operating expenses increased with SG&A rising to $7.78 billion from $7.07 billion in Q4
• Merchandise costs increased to $75.04 billion from $69.59 billion in Q4
• Stock repurchases increased to $903 million from $700 million year-over-year

Insights

Financial Analyst

Costco posts solid 8% sales growth with strong e-commerce performance, expanding margins, and growing membership revenue amid warehouse expansion.

Costco delivered impressive fourth quarter results with net sales increasing 8.0% to $84.4 billion and fiscal year sales rising 8.1% to $269.9 billion. The retailer demonstrated strength across all geographic segments, with particularly robust performance in international markets where comparable sales grew 8.6% in Q4 excluding currency impacts.

The company's e-commerce channel continues to thrive with 13.6% comparable sales growth in Q4 and 15.6% for the full year, highlighting Costco's successful omnichannel strategy. This digital acceleration represents a significant competitive advantage as consumers increasingly blend online and warehouse shopping experiences.

Membership fee income, a critical high-margin revenue stream, increased 14.0% to $1.7 billion in Q4 and 10.3% to $5.3 billion for the fiscal year. This growth reflects both Costco's expanding warehouse footprint (now 914 locations across 13 countries) and its strong member retention.

Profitability metrics showed improvement, with Q4 net income rising 10.9% to $2.61 billion ($5.87 per diluted share), outpacing sales growth. For the full year, net income increased 9.9% to $8.1 billion ($18.21 per diluted share), demonstrating operating leverage despite ongoing inflationary pressures.

Cash flow generation remained robust with $13.3 billion in operating cash flow for the year, a 17.6% increase over 2024. This allowed Costco to fund $5.5 billion in capital expenditures while still growing its cash position to $14.2 billion, providing ample financial flexibility for future investments and shareholder returns.

Inventory management improved significantly, with merchandise inventories declining 2.8% to $18.1 billion despite the sales growth, indicating enhanced supply chain efficiency and reduced carrying costs. Combined with a 1.9% increase in accounts payable, Costco has effectively optimized its working capital while ensuring product availability for members.

ISSAQUAH, Wash., Sept. 25, 2025 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the 16-week fourth quarter and the 52-week fiscal year ended August 31, 2025.

Net sales for the quarter increased 8.0 percent, to $84.4 billion, from $78.2 billion last year. Net sales for the fiscal year increased 8.1 percent, to $269.9 billion, from $249.6 billion last year.

Comparable sales for the fourth quarter and fiscal year were as follows:

		16 Weeks		16 Weeks		52 Weeks		52 Weeks
				Adjusted*				Adjusted*
	U.S.	5.1%		6.0%		6.2%		7.3%
	Canada	6.3%		8.3%		5.0%		8.3%
	Other International	8.6%		7.2%		4.8%		8.2%
	Total Company	5.7%		6.4%		5.9%		7.6%
	E-commerce	13.6%		13.5%		15.6%		16.1%

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

Net income for the fourth quarter was $2.610 billion, $5.87 per diluted share, compared to $2.354 billion, $5.29 per diluted share, last year. Last year’s results included a net non-recurring tax benefit of $63 million, $0.14 per diluted share, related to a transfer pricing settlement, and true-ups of tax reserves. Net income for the fiscal year was $8.099 billion, $18.21 per diluted share, compared to $7.367 billion, $16.56 per diluted share, last year.

Costco currently operates 914 warehouses, including 629 in the United States and Puerto Rico, 110 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, two 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, September 25, 2025, and will be 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)
	16 Weeks Ended								52 Weeks Ended
	August 31, 2025				September 1, 2024				August 31, 2025				September 1, 2024
REVENUE
Net sales	$	84,432			$	78,185			$	269,912			$	249,625
Membership fees		1,724				1,512				5,323				4,828
Total revenue		86,156				79,697				275,235				254,453
OPERATING EXPENSES
Merchandise costs		75,037				69,588				239,886				222,358
Selling, general and administrative		7,778				7,067				24,966				22,810
Operating income		3,341				3,042				10,383				9,285
OTHER INCOME (EXPENSE)
Interest expense		(46	)			(49	)			(154	)			(169	)
Interest income and other, net		215				120				589				624
INCOME BEFORE INCOME TAXES		3,510				3,113				10,818				9,740
Provision for income taxes		900				759				2,719				2,373
NET INCOME	$	2,610			$	2,354			$	8,099			$	7,367
NET INCOME PER COMMON SHARE:
Basic	$	5.88			$	5.30			$	18.24			$	16.59
Diluted	$	5.87			$	5.29			$	18.21			$	16.56
Shares used in calculation (000’s):
Basic		444,007				444,013				443,985				443,914
Diluted		444,706				444,977				444,803				444,759

COSTCO WHOLESALE CORPORATION CONSOLIDATED BALANCE SHEETS (amounts in millions, except par value and share data) (unaudited)
Subject to Reclassification
	August 31, 2025				September 1, 2024
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	14,161			$	9,906
Short-term investments		1,123				1,238
Receivables, net		3,203				2,721
Merchandise inventories		18,116				18,647
Other current assets		1,777				1,734
Total current assets		38,380				34,246
OTHER ASSETS
Property and equipment, net		31,909				29,032
Operating lease right-of-use assets		2,725				2,617
Other long-term assets		4,085				3,936
TOTAL ASSETS	$	77,099			$	69,831
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$	19,783			$	19,421
Accrued salaries and benefits		5,205				4,794
Accrued member rewards		2,677				2,435
Deferred membership fees		2,854				2,501
Other current liabilities		6,589				6,313
Total current liabilities		37,108				35,464
OTHER LIABILITIES
Long-term debt, excluding current portion		5,713				5,794
Long-term operating lease liabilities		2,460				2,375
Other long-term liabilities		2,654				2,576
TOTAL LIABILITIES		47,935				46,209
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; 443,237,000 and 443,126,000 shares issued and outstanding		2				2
Additional paid-in capital		8,282				7,829
Accumulated other comprehensive loss		(1,770	)			(1,828	)
Retained earnings		22,650				17,619
TOTAL EQUITY		29,164				23,622
TOTAL LIABILITIES AND EQUITY	$	77,099			$	69,831

COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in millions) (unaudited)
Subject to Reclassification
	52 Weeks Ended
	August 31, 2025				September 1, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	8,099			$	7,367
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,426				2,237
Non-cash lease expense		303				315
Stock-based compensation		860				818
Other non-cash operating activities, net		(117	)			(9	)
Changes in working capital		1,764				611
Net cash provided by operating activities		13,335				11,339
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of short-term investments		(1,028	)			(1,470	)
Maturities of short-term investments		1,141				1,790
Additions to property and equipment		(5,498	)			(4,710	)
Other investing activities, net		74				(19	)
Net cash used in investing activities		(5,311	)			(4,409	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of short-term borrowings		(862	)			(920	)
Proceeds from short-term borrowings		816				928
Repayments of long-term debt		(103	)			(1,077	)
Proceeds from issuance of long-term debt		—				498
Tax withholdings on stock-based awards		(393	)			(315	)
Repurchases of common stock		(903	)			(700	)
Cash dividend payments		(2,183	)			(9,041	)
Financing lease payments and other financing activities, net		(147	)			(137	)
Net cash used in financing activities		(3,775	)			(10,764	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		6				40
Net change in cash and cash equivalents		4,255				(3,794	)
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR		9,906				13,700
CASH AND CASH EQUIVALENTS END OF YEAR	$	14,161			$	9,906

FAQ

What were Costco's Q4 2025 earnings per share?

Costco reported Q4 2025 earnings of $5.87 per diluted share, compared to $5.29 per diluted share in the previous year.

How much did Costco's sales grow in fiscal year 2025?

Costco's net sales for fiscal year 2025 grew 8.1% to $269.9 billion, up from $249.6 billion in the previous year.

What was Costco's membership fee revenue in Q4 2025?

Costco's membership fee revenue in Q4 2025 was $1.724 billion, an increase from $1.512 billion in the same period last year.

How many warehouses does Costco operate globally in 2025?

As of 2025, Costco operates 914 warehouses across 13 countries, including 629 in the United States and Puerto Rico.

What was Costco's e-commerce growth in fiscal year 2025?

Costco's e-commerce sales grew by 15.6% in fiscal year 2025, or 16.1% when adjusted for foreign exchange and gas price impacts.

How much cash does Costco have on its balance sheet?

As of August 31, 2025, Costco had $14.161 billion in cash and cash equivalents, up from $9.906 billion the previous year.