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Costco (NASDAQ: COST) posts Q2 2026 EPS of $4.58 on 9.1% sales growth

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(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Costco Wholesale Corporation reported strong growth for the second quarter of fiscal 2026, ended February 15, 2026. Net sales rose 9.1% to $68.24 billion, lifting total revenue to $69.60 billion. Comparable sales grew 7.4% company-wide, with U.S. up 5.9%, Canada up 10.1%, and Other International up 13.0%. Digitally-enabled comparable sales increased 22.6%, reflecting rapid online and app engagement.

Net income for the quarter was $2,035 million, or $4.58 per diluted share, up from $1,788 million, or $4.02 per diluted share, last year. For the first 24 weeks, net sales reached $134.22 billion and net income was $4,036 million, with diluted EPS of $9.08. Membership fees climbed to $1,355 million in the quarter and membership income growth was 13.6%. Worldwide renewal rates were 89.7%, including 92.1% in the U.S. and Canada, with 82.1 million paid memberships and 147.2 million total cardholders.

Positive

  • Strong top-line growth: Q2 2026 net sales increased 9.1% to $68.24 billion, with total revenue of $69.60 billion and company-wide comparable sales up 7.4%, indicating broad-based demand across regions.
  • Double-digit earnings and membership growth: Q2 net income rose to $2,035 million and diluted EPS to $4.58, while membership income grew 13.6% and worldwide renewal rates reached 89.7%, supporting a robust recurring revenue base.
  • Rapid digital and cash flow expansion: Digitally-enabled comparable sales grew 22.6%, and operating cash flow for the first 24 weeks increased to $7,684 million, enabling significant capital investment and dividend payments while building cash to $17,383 million.

Negative

  • None.

Insights

Costco posts double-digit earnings growth with broad-based comp and digital strength.

Costco delivered a solid quarter with net sales up 9.1% to $68.24 billion and total revenue of $69.60 billion. Net income increased to $2,035 million, and diluted EPS rose to $4.58 from $4.02, reflecting operating leverage on higher sales and membership income.

Comparable sales growth was healthy across regions, with company-wide comps up 7.4% and digitally-enabled comparable sales up 22.6%. Membership fees reached $1,355 million, and membership income growth of 13.6% underscores the importance of recurring, high-margin revenue, supported by renewal rates of 89.7% worldwide and 92.1% in the U.S. and Canada.

Operating cash flow of $7,684 million for the first 24 weeks funded $2,815 million in capital spending and $1,154 million in cash dividends, while ending cash and cash equivalents increased to $17,383 million as of February 15, 2026. Subsequent filings may provide additional detail on margin drivers, including the noted gross margin expansion of 17 basis points and the mix of core operations versus other businesses.

Traffic, ticket, and digital growth highlight a healthy, engaged Costco member base.

Company-wide comparable sales rose 7.4%, driven by a 3.1% increase in traffic and a 4.2% higher ticket. Digitally-enabled comparable sales grew 22.6%, with adjusted growth of 21.7%, supported by higher app visits, e-commerce traffic, and average order value.

International markets were particularly strong, with Other International comps up 13.0% for the quarter and February comps aided by the timing shift of Lunar and Chinese New Year, which added about 4.0% to Other International and 0.5% to Total Company sales. Membership depth remains a key asset, with 40.4 million Executive memberships and 75.8% of sales coming from these members.

Warehouse expansion continues, with 924 warehouses in operation, including 634 in the U.S. and Puerto Rico and 114 in Canada as of the reporting date, and management outlining an estimated path to 942 by fiscal year-end. Future disclosures in company filings may specify how ongoing expansion, digital enhancements, and new member value offerings influence traffic, mix, and profitability across regions.

FALSECOSTCO WHOLESALE CORP /NEW000090983200009098322026-03-052026-03-05


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): March 5, 2026

COSTCO WHOLESALE CORPORATION
(Exact name of registrant as specified in its charter)

Washington0-2035591-1223280
(State or other jurisdiction
of incorporation)
(Commission
File No.)
(I.R.S. Employer
Identification No.)

999 Lake Drive
Issaquah, WA 98027
(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: 425-313-8100

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $.005 per shareCOSTNASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02.    Results of Operations and Financial Condition

On March 5, 2026, the Company issued a press release containing its operating results for the second quarter (twelve weeks) and the first 24 weeks of fiscal 2026, ended February 15, 2026, and sales results for the four weeks ended March 1, 2026. A copy of the press release is attached as Exhibit 99.1. In addition, a copy of the Company's earnings release supplement for the second quarter of fiscal 2026 is attached as Exhibit 99.2.
Item 9.01.    Financial Statements and Exhibits

(d) Exhibits.

99.1.    Press release dated March 5, 2026.
99.2.    Second quarter fiscal 2026 supplemental information.
104    Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

COSTCO WHOLESALE CORPORATION
Dated: March 5, 2026By:/s/ Gary Millerchip
Gary Millerchip
Executive Vice President and Chief Financial Officer


Exhibit 99.1
costco6.jpg
Press Release

COSTCO WHOLESALE CORPORATION REPORTS SECOND QUARTER AND YEAR-TO-DATE OPERATING RESULTS FOR FISCAL 2026 AND FEBRUARY SALES RESULTS
ISSAQUAH, Wash., March 5, 2026 - 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 Weeks12 Weeks24 Weeks24 Weeks
Adjusted*Adjusted*
U.S.5.9%6.4%5.9%6.1%
Canada10.1%7.6%8.3%8.3%
Other International13.0%7.1%11.0%7.0%
Total Company7.4%6.7%6.9%6.5%
Digitally-Enabled22.6%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 Weeks4 Weeks26 Weeks26 Weeks
Adjusted*Adjusted*
U.S.5.2%6.0%5.8%6.1%
Canada12.8%9.3%8.5%8.2%
Other International17.9%10.9%10.7%6.6%
Total Company7.9%7.0%6.8%6.4%
Digitally-Enabled21.8%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.



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Press Release
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




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Press Release
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data) (unaudited)

12 Weeks Ended24 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 fees1,355 1,193 2,684 2,359 
Total revenue69,597 63,723 136,904 125,874 
OPERATING EXPENSES
Merchandise costs60,719 55,744 119,229 109,853 
Selling, general and administrative6,272 5,663 12,606 11,509 
Operating income2,606 2,316 5,069 4,512 
OTHER INCOME (EXPENSE)
Interest expense(33)(36)(68)(73)
Interest income and other, net148 142 303 289 
INCOME BEFORE INCOME TAXES2,721 2,422 5,304 4,728 
Provision for income taxes686 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):
Basic443,946 443,982 443,954 443,985 
Diluted444,420 444,886 444,468 444,888 




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Press Release
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 investments857 1,123 
Receivables, net3,782 3,203 
Merchandise inventories18,991 18,116 
Other current assets2,120 1,777 
Total current assets43,133 38,380 
OTHER ASSETS
Property and equipment, net33,645 31,909 
Operating lease right-of-use assets2,759 2,725 
Other long-term assets4,102 4,085 
TOTAL ASSETS$83,639 $77,099 
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable$20,647 $19,783 
Accrued salaries and benefits5,635 5,205 
Accrued member rewards2,833 2,677 
Deferred membership fees3,126 2,854 
Other current liabilities8,522 6,589 
Total current liabilities40,763 37,108 
OTHER LIABILITIES
Long-term debt, excluding current portion5,688 5,713 
Long-term operating lease liabilities2,477 2,460 
Other long-term liabilities2,624 2,654 
TOTAL LIABILITIES51,552 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
Additional paid-in capital8,570 8,282 
Accumulated other comprehensive loss(1,606)(1,770)
Retained earnings25,121 22,650 
TOTAL EQUITY32,087 29,164 
TOTAL LIABILITIES AND EQUITY$83,639 $77,099 



costco6.jpg
Press Release
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 amortization1,194 1,100 
Non-cash lease expense149 137 
Stock-based compensation652 614 
Other non-cash operating activities, net66 (79)
Changes in working capital
1,587 650 
Net cash provided by operating activities7,684 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 investments510 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 borrowings136 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(117)
Net change in cash and cash equivalents3,222 2,450 
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR14,161 9,906 
CASH AND CASH EQUIVALENTS END OF PERIOD$17,383 $12,356 

2nd Quarter FY 2026 Supplemental Information 1 Exhibit 99.2


 
$68.2B Net Sales +9.1% Growth +7.4% Comparable Sales +6.7% Adjusted Comparable Sales1 +3.1% Comparable Traffic +22.6% Digitally-Enabled Comparable Sales +21.7% Adjusted Digitally-Enabled Comparable Sales2 Q2 Highlights - Sales 1 - Excluding impacts from changes in gasoline prices and foreign exchange 2 - Excluding impacts from changes in foreign exchange rates 2 +4.2% Comparable Ticket +3.5% Adjusted Comparable Ticket1


 
Q2 Highlights – Sales - Segment Reporting 1 - Excluding impacts from changes in gasoline prices and foreign exchange Comp Sales US Canada Other International Total Company Sales +5.9% +10.1% +13.0% +7.4% Ticket +3.4% +5.5% +8.0% +4.2% Traffic +2.4% +4.3% +4.6% +3.1% 3 Adjusted Comp Sales1 US Canada Other International Total Company Sales +6.4% +7.6% +7.1% +6.7% Ticket +3.9% +3.1% +2.4% +3.5% Traffic +2.4% +4.3% +4.6% +3.1%


 
Q2 Highlights - Financial Performance Gross Margin 11.02% +17 bps vs. Q2 FY’25 +11 bps ex. gas impact SG&A 9.19% -13 bps vs. Q2 FY’25 -8 bps ex. gas impact 4 1 - Excluding the impacts from changes in gasoline prices 2 - Non-recurring legal settlement received in Q2 3 - Increase in general liability reserve to reflect expected future costs for prior year claims not yet settled Reported Ex Gas1 Reported Ex Gas1 Core -3bps -7bps Ops -2bps +2bps Other Bus +19bps +17bps Central -4bps -3bps LIFO -4bps -4bps Equity Comp 0bps 0bps Other2 +5bps +5bps Preopening -1bp -1bp Total +17bps +11bps Other3 -6bps -6bps Core on Core Sales: +22bps Total -13bps -8bps + Favorable/lower, - Unfavorable/higher Diluted EPS $4.58 +13.9% Growth Net Income $2.04B +13.8% Growth


 
+13.6% Membership Income Growth +12.2% Membership Income Growth ex-FX 89.7% Worldwide Membership Renewal Rate 92.1% US/CN Renewal Rate 82.1MM Paid Memberships +4.8% Growth 147.2MM Total Cardholders +4.7% Growth 40.4MM Executive Memberships 75.8% Penetration of Sales to Executive Members Q2 Highlights - Membership 5


 
+22.6% Digitally-Enabled Comparable Sales 1 – Digitally-Enabled Comparable Sales excluding impacts from FX +21.7% Adjusted Digitally-Enabled Comparable Sales1 Top Sales Categories: - Gold/Jewelry - Toys - Small Electrics - Housewares - Pharmacy Digital Metrics: - Total App visits: +63% - Ecommerce Site Traffic: +32% - Ecommerce Average Order Value: +15% Digital Enhancements: - Expansion of carousels for personalized shopping experience - Additional personalized marketing based on browsing history - Modernized product display pages Q2 Highlights - Digital 6


 
Q2 Highlights - Warehouse Expansion West Roseville, CA: 1/23/26 7 East Gwillimbury, ON (Business Center): 12/6/25 FY’25 End FY’26 Q1 FY’26 Q2 Rest of FY (Estimated) FY’26 End (Estimated) US 629 4 1 15 649 Canada 110 2 2 1 115 Other International 175 1 - 2 178 Total 914 7 3 18 942


 
Q2 Highlights - New Member Values KS ABF Blackened Salmon KS Double Chocolate Mint Sundae 8 KS Butter From $13.89 to $8.49* KS Org Coconut Water 330mL From $12.79 to $10.99 KS Women’s Ottoman Full Zip KS Crispy Wings KS 3Ply Facial Tissue From $16.49 to $15.99 KS Organic Seaweed From $10.99 to $9.99 New Items Lowering Everyday Low Prices * Prices shown reflect change from Q1 end to Q2 end


 
Safe Harbor 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. 9


 

FAQ

How did Costco (COST) perform financially in Q2 fiscal 2026?

Costco delivered higher sales and profits in Q2 fiscal 2026. Net sales increased 9.1% to $68.24 billion, while total revenue reached $69.60 billion. Net income rose to $2,035 million, with diluted earnings per share improving to $4.58 from $4.02 last year.

What were Costco (COST) comparable sales and digital growth in Q2 2026?

Costco posted solid comparable sales and exceptional digital growth. Company-wide comparable sales increased 7.4%, with U.S. up 5.9%, Canada 10.1%, and Other International 13.0%. Digitally-enabled comparable sales grew 22.6%, reflecting stronger app usage, higher e-commerce traffic, and increased average online order values.

How much did Costco (COST) earn in the first 24 weeks of fiscal 2026?

For the first 24 weeks of fiscal 2026, Costco generated higher revenue and earnings. Net sales were $134.22 billion, up from $123.52 billion, and net income reached $4,036 million. Diluted earnings per share for this period were $9.08, compared with $8.06 a year earlier.

What are Costco (COST) membership trends and renewal rates in Q2 2026?

Membership metrics remained very strong in Q2 2026. Membership fees totaled $1,355 million, with membership income growth of 13.6%. Worldwide renewal rates were 89.7%, including 92.1% in the U.S. and Canada. Costco reported 82.1 million paid memberships and 147.2 million total cardholders.

How did Costco (COST) perform in February 2026 sales?

February 2026 showed continued momentum. For the four-week period ended March 1, 2026, net sales were $21.69 billion, up 9.5% from $19.81 billion. Company-wide comparable sales increased 7.9%, with digitally-enabled comparable sales up 21.8% over the same period last year.

What does Costco’s (COST) cash flow and balance sheet look like year-to-date 2026?

Costco’s cash generation and balance sheet strengthened. For the first 24 weeks, net cash provided by operating activities was $7,684 million. Cash and cash equivalents increased to $17,383 million as of February 15, 2026, while the company continued investing in property and paying dividends.

How many warehouses does Costco (COST) operate and where is it expanding?

Costco is growing its global warehouse footprint. It operated 924 warehouses, including 634 in the U.S. and Puerto Rico and 114 in Canada. The company opened additional locations in fiscal 2026 and estimates ending the year with about 942 warehouses across its domestic and international markets.

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443.03B
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ISSAQUAH