Costco Wholesale Corporation Reports Second Quarter and Year-to-Date Operating Results for Fiscal 2026 and February Sales Results

Rhea-AI Summary

Costco (Nasdaq: COST) reported fiscal 2026 second-quarter and 24-week results. Quarter net sales rose 9.1% to $68.24 billion and quarter net income was $2,035 million ($4.58 diluted EPS) versus $1,788 million ($4.02) a year earlier. 24-week net sales were $134.22 billion, up 8.7% year-over-year.

Comparable sales gains were broad-based: Total Company comparable sales increased high single digits for the quarter, with digitally-enabled sales up about 22%. Costco operated 924 warehouses globally at period end.

Positive

• Quarterly net sales +9.1% to $68.24B
• Quarter net income +13.8% to $2,035M ($4.58 diluted EPS)
• 24-week net sales +8.7% to $134.22B
• Digitally-enabled sales +22.6% for the 12-week quarter

Negative

• Selling, general and administrative expense +10.8% to $6,272M
• Additions to property and equipment increased to $2,815M (24 weeks)
• Cash dividend payments rose to $1,154M for the 24 weeks

News Market Reaction – COST

+1.58%

+1.58% Session close to close

In the Mar 6 session, COST gained 1.58%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details broad-based growth, with Q2 net sales of $68.24B, net income of $2,035M, a...

Analysis

This announcement details broad-based growth, with Q2 net sales of $68.24B, net income of $2,035M, and double-digit digitally-enabled comparable sales. Prior earnings releases over FY2025–Q1 FY2026 similarly showed rising sales, EPS, and membership fees, while price reactions were mixed, averaging about -1.15% the next day. Investors tracking this story may focus on sustaining mid‑single‑digit comparable sales, digital growth momentum, cash generation, and any shifts in competitive or macro conditions highlighted in risk disclosures.

Key Figures

Q2 net sales: $68.24 billion (vs. $62.53 billion, +9.1%) Q2 net income: $2,035 million, $4.58 diluted EPS 24-week net sales: $134.22 billion (vs. $123.52 billion, +8.7%) +5 more

8 metrics

Q2 net sales $68.24 billion (vs. $62.53 billion, +9.1%) Second quarter fiscal 2026

Q2 net income $2,035 million, $4.58 diluted EPS Second quarter fiscal 2026 vs. $1,788M, $4.02 EPS last year

24-week net sales $134.22 billion (vs. $123.52 billion, +8.7%) First 24 weeks fiscal 2026

24-week net income $4.04 billion, $9.08 diluted EPS First 24 weeks fiscal 2026 vs. $3.59B, $8.06 EPS last year

February net sales $21.69 billion (vs. $19.81 billion, +9.5%) Four weeks ended March 1, 2026

Total comp sales +7.4% (Q2), +6.9% (24 weeks) Companywide comparable sales growth

Digitally-enabled comps +22.6% (Q2), +21.6% (24 weeks) Digital sales growth excluding gas and FX impacts

Cash and cash equivalents $17,383 million Balance sheet at February 15, 2026

Previous Earnings Reports

5 past events · Latest: Dec 11 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Dec 11	Q1 FY26 earnings	Positive	+0.0%	Q1 FY26 results with higher net sales, income, and membership fees.
Sep 25	Q4/FY25 earnings	Positive	-2.9%	Q4 and full-year 2025 sales and EPS growth with higher membership fees.
May 29	Q3 FY25 earnings	Positive	+3.1%	Q3 FY25 sales and net income growth with strong e-commerce gains.
Mar 06	Q2 FY25 earnings	Positive	-6.1%	Q2 FY25 sales and net income growth plus solid February sales.
Dec 12	Q1 FY25 earnings	Positive	+0.1%	Q1 FY25 net sales and net income increase with positive comps.

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

Pattern Detected

Recent earnings releases have been fundamentally strong but produced mixed to slightly negative average next-day moves, with several instances of shares declining or staying flat after positive results.

Recent Company History

Over recent quarters, Costco’s earnings reports have consistently shown rising net sales, net income, and solid comparable sales growth, alongside expanding global warehouse and e-commerce footprints. Events span Q1–Q4 fiscal 2025 and Q1 fiscal 2026, with net sales and EPS increasing in each summary provided. However, price reactions have been uneven: some earnings days saw gains, while others experienced notable declines despite positive fundamentals. Today’s Q2 and year-to-date fiscal 2026 results continue that pattern of steady growth and profitability improvement against a backdrop of historically mixed trading responses.

Key Terms

net sales, comparable sales, diluted share, forward-looking statements, +3 more

7 terms

net sales financial

"Net sales for the quarter increased 9.1 percent, to $68.24 billion..."

Net sales is the total money a company earns from selling its goods or services after subtracting returns, discounts, and allowances — like a store counting the cash it actually keeps after refunds and coupons. Investors use net sales to gauge true customer demand and the real size of a business’s revenue stream, since it forms the basis for profit margins, growth trends, and comparisons between companies.

comparable sales financial

"Comparable sales for the second quarter and first 24 weeks of 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.

diluted share financial

"Net income for the quarter was $2,035 million, $4.58 per diluted share..."

Diluted share count is the total number of company shares that would exist if all potential claims that can become stock—such as employee stock options, warrants and convertible bonds—were exercised or converted. Investors use diluted shares to see a more conservative view of ownership and per-share metrics (like earnings per share), because it’s like slicing a cake into more pieces: the same profit spread over more slices makes each slice smaller.

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 intended as supplemental information and 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.

operating income financial

"Operating income | | 2,606 | | 2,316 | | 5,069 | | 4,512"

Operating income is the profit a company earns from its regular business activities after subtracting the costs directly related to running the business, such as wages, rent, and supplies. It shows how well the core operations are performing, ignoring income or expenses from non-regular activities like investments or one-time events. Investors use it to assess the company's efficiency and profitability from its main work.

View in glossary

cash flows from operating activities financial

"CASH FLOWS FROM OPERATING ACTIVITIES Net income | $4,036 | | $3,586"

Cash flows from operating activities are the actual cash a company receives and pays as a result of its core business — sales to customers, payments to suppliers and employees, and other day‑to‑day transactions. Investors care because this is the clearest measure of whether the business’s normal operations generate enough real cash to fund growth, service debt, and pay dividends; think of it like a household’s paycheck and bills, not one‑time sales or loans.

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

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ISSAQUAH, Wash., March 05, 2026 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the second quarter (twelve weeks) and the first 24 weeks of fiscal 2026, ended February 15, 2026.

Net sales for the quarter increased 9.1 percent, to $68.24 billion, from $62.53 billion last year. Net sales for the first 24 weeks increased 8.7 percent, to $134.22 billion, from $123.52 billion last year.

Comparable sales for the second quarter and first 24 weeks of fiscal 2026 were as follows:

		12 Weeks		12 Weeks		24 Weeks		24 Weeks
				Adjusted*				Adjusted*
	U.S.	5.9%		6.4%		5.9%		6.1%
	Canada	10.1%		7.6%		8.3%		8.3%
	Other International	13.0%		7.1%		11.0%		7.0%
	Total Company	7.4%		6.7%		6.9%		6.5%
	Digitally-Enabled	22.6%		21.7%		21.6%		21.2%

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

Net income for the quarter was $2,035 million, $4.58 per diluted share, compared to $1,788 million, $4.02 per diluted share, last year. Net income for the first 24 weeks was $4.04 billion, $9.08 per diluted share, compared to $3.59 billion, $8.06 per diluted share, last year.

For the four-week reporting month of February, ended March 1, 2026, the Company reported net sales of
$21.69 billion, an increase of 9.5 percent from $19.81 billion last year. Net sales for the first 26 weeks were $144.85 billion, an increase of 8.6 percent from $133.36 billion last year.

Comparable sales for the February and year-to-date periods ended March 1, 2026, were as follows:

		4 Weeks		4 Weeks		26 Weeks		26 Weeks
				Adjusted*				Adjusted*
	U.S.	5.2%		6.0%		5.8%		6.1%
	Canada	12.8%		9.3%		8.5%		8.2%
	Other International	17.9%		10.9%		10.7%		6.6%
	Total Company	7.9%		7.0%		6.8%		6.4%
	Digitally-Enabled	21.8%		20.8%		21.8%		21.3%

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

Lunar and Chinese New Years occurred on February 17, 19 days later this year. The shift positively impacted February Other International and Total Company sales by approximately 4.0% and 0.5%, respectively.

Costco currently operates 924 warehouses, including 634 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, March 5, 2026, and is available via a webcast on investor.costco.com (click on “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 
COST-Sales

COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollars in millions, except per share data) (unaudited)
	12 Weeks Ended								24 Weeks Ended
	February 15, 2026				February 16, 2025				February 15, 2026				February 16, 2025
REVENUE
Net sales	$	68,242			$	62,530			$	134,220			$	123,515
Membership fees		1,355				1,193				2,684				2,359
Total revenue		69,597				63,723				136,904				125,874
OPERATING EXPENSES
Merchandise costs		60,719				55,744				119,229				109,853
Selling, general and administrative		6,272				5,663				12,606				11,509
Operating income		2,606				2,316				5,069				4,512
OTHER INCOME (EXPENSE)
Interest expense		(33	)			(36	)			(68	)			(73	)
Interest income and other, net		148				142				303				289
INCOME BEFORE INCOME TAXES		2,721				2,422				5,304				4,728
Provision for income taxes		686				634				1,268				1,142
NET INCOME	$	2,035			$	1,788			$	4,036			$	3,586
NET INCOME PER COMMON SHARE:
Basic	$	4.58			$	4.03			$	9.09			$	8.08
Diluted	$	4.58			$	4.02			$	9.08			$	8.06
Shares used in calculation (000s):
Basic		443,946				443,982				443,954				443,985
Diluted		444,420				444,886				444,468				444,888

COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in millions, except par value and share data) (unaudited)
Subject to Reclassification
	February 15, 2026				August 31, 2025
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	17,383			$	14,161
Short-term investments		857				1,123
Receivables, net		3,782				3,203
Merchandise inventories		18,991				18,116
Other current assets		2,120				1,777
Total current assets		43,133				38,380
OTHER ASSETS
Property and equipment, net		33,645				31,909
Operating lease right-of-use assets		2,759				2,725
Other long-term assets		4,102				4,085
TOTAL ASSETS	$	83,639			$	77,099
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$	20,647			$	19,783
Accrued salaries and benefits		5,635				5,205
Accrued member rewards		2,833				2,677
Deferred membership fees		3,126				2,854
Other current liabilities		8,522				6,589
Total current liabilities		40,763				37,108
OTHER LIABILITIES
Long-term debt, excluding current portion		5,688				5,713
Long-term operating lease liabilities		2,477				2,460
Other long-term liabilities		2,624				2,654
TOTAL LIABILITIES		51,552				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; 443,692,000 and 443,237,000 shares issued and outstanding		2				2
Additional paid-in capital		8,570				8,282
Accumulated other comprehensive loss		(1,606	)			(1,770	)
Retained earnings		25,121				22,650
TOTAL EQUITY		32,087				29,164
TOTAL LIABILITIES AND EQUITY	$	83,639			$	77,099

COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in millions) (unaudited)
Subject to Reclassification
	24 Weeks Ended
	February 15, 2026				February 16, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	4,036			$	3,586
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,194				1,100
Non-cash lease expense		149				137
Stock-based compensation		652				614
Other non-cash operating activities, net		66				(79	)
Changes in working capital		1,587				650
Net cash provided by operating activities		7,684				6,008
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment		(2,815	)			(2,401	)
Purchases of short-term investments		(250	)			(345	)
Maturities of short-term investments		510				752
Other investing activities, net		(13	)			(13	)
Net cash used in investing activities		(2,568	)			(2,007	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of short-term borrowings		(65	)			(389	)
Proceeds from short-term borrowings		136				370
Tax withholdings on stock-based awards		(358	)			(390	)
Repurchases of common stock		(419	)			(412	)
Cash dividend payments		(1,154	)			(515	)
Financing lease payments and other financing activities, net		(37	)			(98	)
Net cash used in financing activities		(1,897	)			(1,434	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		3				(117	)
Net change in cash and cash equivalents		3,222				2,450
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR		14,161				9,906
CASH AND CASH EQUIVALENTS END OF PERIOD	$	17,383			$	12,356

FAQ

What were Costco (COST) net sales and growth in Q2 fiscal 2026?

Costco reported Q2 net sales of $68.24 billion, up 9.1% year-over-year. According to the company, this reflects broad-based comparable sales gains and strong digitally-enabled growth near 22%.

How much net income did Costco (COST) report for the second quarter of fiscal 2026?

Costco reported quarter net income of $2,035 million ($4.58 diluted EPS). According to the company, this compares with $1,788 million ($4.02) in the prior-year quarter, reflecting higher sales and operating income.

What were Costco (COST) comparable sales trends in the 12-week quarter and 24-week year-to-date?

Total Company comparable sales rose about 7.4% for the 12-week quarter and about 6.9% for 24 weeks. According to the company, adjusted figures exclude gasoline and FX impacts.

How did digitally-enabled sales perform for Costco (COST) in this reporting period?

Digitally-enabled sales increased sharply, . According to the company, e-commerce growth contributed materially to overall comparable sales gains across markets.

What cash flow and capital spending did Costco (COST) report for the 24 weeks?

Net cash provided by operating activities was $7,684 million, and additions to property and equipment were $2,815 million. According to the company, cash from operations funded capital investments and shareholder distributions.

How many warehouses did Costco (COST) operate at the end of the reporting period?

Costco operated 924 warehouses globally at period end, including 634 in the U.S. and Puerto Rico and 114 in Canada. According to the company, the footprint spans multiple international markets and e-commerce sites.