Costco rozšiřuje retail media prostřednictvím Google Commerce Media a YouTube, aby podpořila digitální tržby. Ve 3. čtvrtletí fiskálního roku 2026 vzrostly digitálně podpořené srovnatelné tržby o 21,5 % a návštěvnost webu a aplikace o 37 %.
Key Takeaways Costco is expanding retail media through Google Commerce Media and YouTube to boost digital revenues.Digital comparable sales rose 21.5%, while site and app traffic increased 37% in fiscal Q3.Personalized carousels drove triple conversion rates and nearly $0.5 billion in e-commerce sales. Costco Wholesale Corporation (COST - Free Report) is expanding its retail media capabilities to build an incremental digital revenue opportunity while strengthening member engagement. A major step in this strategy is the recently launched collaboration with Google Commerce Media and YouTube. This partnership serves as a significant milestone on the warehouse giant's journey toward expanding its share of retail media revenues. It also simplifies how brands and agencies collaborate with Costco's retail media network.
The opportunity is supported by accelerating digital engagement, with digitally enabled comparable sales rising 21.5%, and site and app traffic increasing 37% during the third quarter of fiscal 2026.
Management emphasized that the company's business model differs from other players due to its high SKU efficiency. However, Costco approaches this opportunity with a strict philosophy where the member always comes first. The primary focus of their retail media expansion is building personalization capabilities to deliver relevant messaging that helps members save both time and money. At the same time, Costco has introduced media activity on third-party sites.
We note that personalized product recommendation carousels generated conversion rates three times higher than typical levels and contributed just under $0.5 billion in e-commerce sales during the quarter.
Management expects retail media revenues to ramp up meaningfully. Brand partners participate to secure a better return on their marketing spend while providing relevant experiences. Costco maintains a strict structural guardrail for this digital revenue stream. Between 80% and 90% of the value generated from retail media is directly reinvested into the membership base through better pricing and greater value, reinforcing Costco's member-first strategy while supporting long-term retail media expansion.
What the Latest Metrics Say About CostcoCostco, which competes with Dollar General Corporation (DG - Free Report) and Target Corporation (TGT - Free Report) , has seen its shares drop 6.1% over the past three months compared with the industry’s 2.9% decline. While shares of Dollar General have fallen 2.6%, those of Target have jumped 8.9% in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 43, higher than the industry’s ratio of 30.6. However, the stock is trading below its 12-month median level of 46.35, indicating some moderation in valuation despite sustained investor confidence in the stock.
Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 15.18) and Dollar General (15.46).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.5% and 13.3%, respectively. For the next fiscal year, the consensus estimate indicates a 7.9% rise in sales and 10.2% growth in earnings.
The consensus estimates for earnings per share for the current and next fiscal year have increased by 6 cents to $20.38 and 10 cents to $22.46, respectively, over the past 60 days.
Image Source: Zacks Investment Research
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Costco má téměř 20 miliard USD v likvidních aktivech a silný členský model, což mu pomáhá čelit tlaku v maloobchodu. Příjmy z členských poplatků vzrostly o 10,7 % na 1,373 miliardy USD.
Key Takeaways Costco's balance sheet remains a key edge as inflation, tariffs and cautious spending weigh on retail.Costco held nearly $20B in liquid assets, with current assets exceeding liabilities in fiscal Q3.Membership fee income rose 10.7%, supported by 82.9M paid memberships and an 89.7% renewal rate. Costco Wholesale Corporation's (COST - Free Report) balance sheet remains a key competitive advantage as retailers navigate inflation, tariff uncertainty and cautious consumer spending. The company ended the third quarter of fiscal 2026 with $18,946 million in cash and cash equivalents, up from $14,161 million at the end of fiscal 2025. Combined with $1,050 million in short-term investments, Costco held nearly $20 billion in liquid assets, providing ample financial flexibility to navigate short-term disruptions while continuing to invest in long-term growth.
The company's conservative capital structure further reinforces that strength. Current assets totaled $45,177 million, comfortably exceeding current liabilities of $42,125 million, while long-term debt remained modest at $5,670 million. Shareholders' equity increased to $33,509 million, reflecting continued earnings growth and a solid financial foundation. Management emphasized that maintaining financial flexibility allows Costco to prioritize investments in warehouse expansion, remodels, supply-chain infrastructure and digital capabilities without stretching its balance sheet.
Cash generation continues to support these investments. During the first 36 weeks of fiscal 2026, operating cash flow climbed to $11,133 million, comfortably funding $4,228 million of capital expenditures. Costco continues to expect approximately $6.5 billion in fiscal 2026 capital spending as it accelerates new warehouse openings, expands depot capacity, remodels existing warehouses and enhances the member digital experience.
Another important source of financial resilience is Costco's membership model. Membership fee income increased 10.7% year over year to $1,373 million, supported by 82.9 million paid memberships, 41.2 million executive memberships and a worldwide renewal rate of 89.7%. This recurring, high-quality revenue stream provides predictable cash flows that strengthen Costco's ability to invest through economic cycles.
Backed by substantial liquidity, disciplined leverage and durable membership economics, Costco remains well equipped to withstand retail headwinds while continuing to fund its long-term expansion strategy.
What the Latest Metrics Say About CostcoCostco, which competes with Dollar General Corporation (DG - Free Report) and Target Corporation (TGT - Free Report) , has seen its shares drop 7.8% over the past three months compared with the industry’s 4.4% decline. While shares of Dollar General have fallen 3.8%, those of Target have jumped 8.5% in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 42.31, higher than the industry’s ratio of 30.41. However, the stock is trading below its 12-month median level of 46.37, indicating some moderation in valuation despite sustained investor confidence in the stock.
Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 15.23) and Dollar General (15.12).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.5% and 13.3%, respectively. For the next fiscal year, the consensus estimate indicates a 7.9% rise in sales and 10.2% growth in earnings.
The consensus estimate for earnings per share for both the current and next fiscal year has increased by 1 cent to $20.38 and $22.46, respectively, over the past 30 days.
Image Source: Zacks Investment Research
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Costco říká, že AI vyhledávání je zatím malé, ale ve třetím čtvrtletí vzrostlo trojciferně a mělo nejvyšší konverzi ze všech zdrojů návštěvnosti. Digitální návštěvnost webu a aplikace stoupla o 37 % a digitálně podpořené srovnatelné tržby vzrostly o 21,5 %.
Key Takeaways Costco is using AI search to make its products and member value easier for consumers to find.AI traffic remains low but grew triple digits in Q3 and had the highest conversion rate.Digital engagement is strong, with site and app traffic up 37%, and digital comps up 21.5%. Costco Wholesale Corporation (COST - Free Report) suggests that artificial intelligence (AI) is a small but important digital opportunity, even at this early stage. Management said consumers are increasingly using AI to research products and services, and Costco is working with leading AI companies to improve how its value proposition is presented to current and potential members. The strategy is not about changing the core model. It is about making Costco products easier to find through AI search.
The key step is to improve online product pages so that large language models can better capture Costco’s quality, pricing and member value. This matters because some Costco offers are hard to explain through a regular search. Management pointed to appliances, where the real value includes delivery, installation and haul-away and to tires, where installation, road hazard coverage and nitrogen are included. AI search can present that broader value more clearly.
The early signals are notable. AI-generated traffic remains low, but Costco saw triple-digit growth in the third quarter of fiscal 2026, and this traffic carried the highest conversion rate of any source coming to its site. That sits alongside strong digital engagement, with site and app traffic up 37% and digitally enabled comparable sales up 21.5%. AI search is not yet a major revenue engine, but it could become a useful driver for Costco’s digital business.
What the Latest Metrics Say About CostcoCostco, which competes with Dollar General Corporation (DG - Free Report) and Target Corporation (TGT - Free Report) , has seen its shares drop 4.5% over the past three months compared with the industry’s 0.2% decline. Shares of Dollar General and Target have jumped 1.4% and 18.1%, respectively, in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 43.11, higher than the industry’s ratio of 30.91. However, it is trading below its 12-month median level of 46.40, indicating some moderation in valuation despite sustained investor confidence in the stock.
Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 16.38) and Dollar General (15.71).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.4% and 13.3%, respectively. For the next fiscal year, the consensus estimate indicates a 7.8% rise in sales and 10.2% growth in earnings.
The consensus estimate for earnings per share for the current and next fiscal year has increased by 5 cents and 6 cents to $20.38 and $22.46, respectively, over the past 30 days.
Image Source: Zacks Investment Research
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Costco Wholesale (COST +1.13%) stock hit $1,000 for the first time in February 2025, but it's been up and down since then as the market accounts for changing economic trends.
Costco itself has been demonstrating outstanding performance the whole time, though, and the market has been feeling more positive about it.
Can it get back to $1,000 again before the end of the year?
Image source: Getty Images.
The "inflation-proof" model Costco is often called a "recession-proof" or "inflation-proof" stock because it can do well in adverse circumstances. In fact, the company often does even better in rough economies, because that's when its customers need it even more.
The company strives to offer the best prices possible, and it markets products in bulk and in bare-bones warehouses to cut out extraneous costs. It marks up prices to cover whatever associated costs remain, and it makes money from annual membership fees. Loyal customers make the most of their memberships when every penny counts, driving high volume when things are toughest.
That's why sales growth is accelerating as inflation persists. Revenue increased 11.6% year over year in the 2026 fiscal third quarter (ended May 10), and comparable sales (comps) were up 9.8%. Earnings are also rising despite rising costs, and earnings per share (EPS) rose from $4.28 last year to $4.93 this year in the third quarter.
What's happening next The market seems less worried about how inflation will impact Costco as it sees Costco thriving. Management noted that its gas stations are attracting new business with higher oil prices, and these members usually buy more in stores, too. As oil prices come down, some of the people who went out of their way to fill up at Costco might not continue to do so, which could be a headwind, but it could also prove to be sticky as these members appreciate the value.
Today's Change
(
1.13
%) $
10.64
Current Price
$
952.88
Management has been working on various digital services, including e-commerce and online registrations, that are adding to the mix. E-commerce sales increased 21.5% year over year in the third quarter, and online registrations are attracting younger shoppers.
New member growth was slightly lower than usual at 4.1%, but management didn't seem worried about the long-term impact. It's expecting to open about 30 stores annually over the next few years, which should lead to more sign-ups and higher sales.
Costco stock's recent drop is more about sentiment than performance or opportunity. It trades at a high P/E ratio of about 48, which makes it susceptible to falling if there's anything the market doesn't love.
The stock recently was only 4% off $1,000, and it can just as easily rise on sentiment, too. Plus, it still has several earnings updates to provide before the year is out, and at the lower valuation, it has more wiggle room, so I can see it reaching $1,000 by the end of the year.
Our Costco (NASDAQ:COST | COST Price Prediction) call right now is constructive. After a sharp pullback from the May highs, the stock sits at $951.35, and our proprietary model still points higher.
The 24/7 Wall St. price target for Costco is $1,046.54, implying 10.01% upside over the next 12 months. Our recommended action is buy, with a confidence score of 0.9, or roughly 90%, which we consider high.
24/7 Wall St. Price Target Summary Metric Value Current Price $951.35 24/7 Wall St. Price Target $1,046.54 Upside 10.01% Recommendation BUY Confidence Level 90% A Reset That Created an Entry Point Costco has cooled meaningfully into the summer. Shares are down 7.48% over the past month and 2.87% over the past week, even as the stock holds a 10.63% year-to-date gain. The 52-week range runs from $841.69 to $1,096.50, so the pullback has reset valuation without breaking the trend.
Fundamentals stayed strong. Q3 FY26 delivered EPS of $4.93 on revenue of $70.53 billion, both ahead of expectations, with comparable sales up 9.8% and digitally enabled comps up 21.5%. Membership fee income rose 10.7% to $1.37 billion, with worldwide renewal at 89.7%. May retail sales hit $763.7B, the strongest reading in the trailing year.
The Case for $1,141 and Beyond The bull case rests on flywheels that keep turning. Executive membership penetration is at 75% of sales, paid memberships reached 82.1 million in Q2, and U.S./Canada renewals sit at 92.3%. Costco is planning roughly 12 new warehouses in the rest of FY26 toward a 940 footprint, with e-commerce traffic up 37%.
Goldman Sachs has highlighted that “Walmart and Costco have captured a significant share of sales growth, benefiting from strong value offerings, operational leverage, and effective supplier negotiations.” Wall Street’s average target sits at $1,082.94, and our bull scenario maps to $1,141.44, a 19.98% total return.
What Could Go Wrong The bear concern is valuation. Costco trades at a trailing P/E of 48 and a forward P/E of 42, with a PEG of 4.644. Tariff exposure, FX volatility, and rising wage and healthcare costs are real, and insider activity recently skewed toward selling.
Our bear scenario lands at $959.83, essentially flat at 0.89%. That said, bulls would argue the premium multiple reflects fortress unit economics: ROE of 29.1%, FY25 free cash flow of $7.84 billion, and capex growth funding the warehouse pipeline.
Costco Price Prediction 2026-2030 The 24/7 Wall St. price target of $1,046.54 implies a buy with 90% confidence. The tipping factor is membership economics. Renewal rates near 90% and executive penetration at 75% give Costco an annuity-like base that funds expansion.
The setup looks constructive if comparable sales hold above 6% on an adjusted basis and renewals stay above 89%. The thesis weakens if the forward P/E pushes back above 45 without an acceleration in EPS, which would erode the model’s upside.
Year 24/7 Wall St. Price Target 2026 $1,046.54 2027 $1,123 2028 $1,205 2029 $1,278 2030 $1,352.93 These projections assume Costco maintains its mid-single-digit unit growth, double-digit membership fee growth, and gradual e-commerce margin lift. Significant upside or downside could come from tariff policy shifts or a faster deceleration in consumer spending.
Costco ve 3. čtvrtletí FY26 zvýšila zisk na akcii (EPS) na 4,93 USD při tržbách 70,53 mld. USD, což překonalo odhady. Digitální srovnatelné tržby vzrostly o 21,5 % a návštěvnost e-commerce o 37 %.
Costco Wholesale (NASDAQ: COST | COST Price Prediction) trades near $985, a price that demands flawless execution into a tightening macro even as the best-in-class compounder narrative remains intact. Kevin Warsh’s first meeting as Fed Chair lands with sticky inflation keeping long yields elevated, and high-multiple stocks have already started bleeding multiple compression into premium consumer staples.
Costco runs a membership-warehouse model that turns fee income into low prices, with Kirkland Signature and Costco Logistics extending the moat. The flywheel produced $275.24B in FY25 revenue and $18.21 in EPS, with $13.34B in operating cash flow.
After climbing 14.74% YTD to $986.68, COST has given back 5.94% over the past month as the market reprices the multiple a slow-and-steady retailer deserves when 10-year yields refuse to budge.
The Flywheel Keeps Spinning Faster Than the Share Price Q3 FY26 delivered EPS of $4.93 on revenue of $70.53B, an 11.6% YoY jump beating consensus, with digitally-enabled comparable sales up 21.5% and e-commerce traffic up 37%. Membership fee income grew 10.7% to $1.37B, the worldwide renewal rate held at 89.7%, and executive members now drive 75.0% of net sales. Net income jumped 15.2%.
Management plans to reach roughly 940 warehouses by FY26 year-end. Quarterly earnings growth running at 45.5% YoY makes a forward P/E of 44 look less absurd in context. Analyst sentiment broadly agrees, with 22 of 37 analysts rating it Buy or Strong Buy.
A 49 P/E Meets a Fed That Cannot Cut Fast Enough Costco trades at a trailing P/E of 49, a forward P/E of 44, and 13 times book, with a PEG of 4.8. For a 3% net margin retailer, that pricing assumes years of uninterrupted execution. Vanguard’s 2026 outlook warns core inflation likely stays above 2.5%, leaving the Fed limited scope to cut below a 3.5% neutral rate. Sticky inflation plus elevated long yields compresses premium multiples.
COST trades below its 50-day moving average of $1,004.25 and only modestly above the 200-day at $957.56, with a 52-week high of $1,096.50 already in the rearview.
Great Business, Demanding Entry Price Nothing in the fundamentals justifies selling a compounder with 82.1M paid memberships and double-digit fee growth. The multiple does not justify chasing the stock into Warsh’s first meeting. A pullback into the low-$900s, or a broader market reset toward $830, would offer real margin of safety. Watch comp sales, membership growth (now running near 4.1%), and any dovish signal from the Fed.
Where the Numbers Leave Costco Today Costco currently trades at $986.68, up 14.74% YTD versus a 10.03% gain for the S&P 500, but down 5.94% over the past month. The consensus analyst target of $1,082.33 implies roughly 10% upside. Across 37 covering analysts:
Strong Buy: 3 Buy: 19 Hold: 13 Sell: 1 Strong Sell: 1 Valuation runs hot with EV/EBITDA at 29 and a 0.55% dividend yield, against a market cap of $434.4B.
At $985, Patience Has a Price Tag At $985, Costco sits in a tension zone. The business fires on every cylinder that matters, yet the entry price assumes the macro cooperates and the multiple holds, both of which look uncertain with Warsh inheriting a sticky inflation problem and the market already punishing high multiples.
The bull case strengthens if Costco pulls back toward $830 on broader multiple compression, or if comps reaccelerate above 10% adjusted while the Fed signals real cuts. The bear case requires a real crack in the 89.7% renewal rate or membership growth, which Q3 did not show. Until one of those breaks, the setup remains in stalemate.
The cost of patience is missing the drift to consensus. The cost of acting is paying 44 times forward earnings for a 3% margin retailer into a tightening cycle. That asymmetry explains why many investors are sitting on their hands at this price.
Costco ve 3. čtvrtletí fiskálního roku zvýšila srovnatelné tržby o 9,8 %, členské poplatky o 10,7 % a digitální prodeje o 21,5 %. Akcie přesto za měsíc klesly o 5,94 %.
Costco (NASDAQ:COST | COST Price Prediction) just posted its strongest comp sales quarter of the fiscal year and the market shrugged. Q3 FY26 comps came in at 9.8%, membership fees grew 10.7%, and digitally-enabled sales jumped 21.5%.
Yet shares have slipped 5.94% over the past month. That gap between operational momentum and price action is the kind of setup I pay attention to. Costco trades at $986.68. Can it reach $1,250 in 2027? Here is the path.
What’s Holding Costco Back Right Now The simple answer: valuation. Costco trades at roughly 49 times trailing earnings, and that multiple gets harder to defend when consumer confidence is cracking. University of Michigan sentiment dropped to 49.8 in April 2026, the lowest reading in the past year and approaching recessionary territory. Even a 0.87 beta does not protect a stock priced for perfection when the macro narrative turns.
Shares reflect that. Shares peaked near $1,048.95 on May 15 before pulling back. YTD is still respectable at +14.74%, but the 1-year return is just 0.8%. An EVP also sold 700 shares at $993 on April 1. These are simply reasons shares are stuck.
Wall Street Sees 9.7% Upside. Our Model Says 8.5% Consensus is constructive but cautious. The analyst target sits at $1,082.33, with 3 strong buys, 19 buys, 13 holds, 1 sell, and 1 strong sell. Bullish skew runs 59%. Citi resumed coverage of Costco with a Neutral rating and $1,020 price target.
Our base case lands at $1,070.32 with 90% confidence, with an optimistic case of $1,151.08 and a bear case of $976.48. My read: both Wall Street and our model are underweighting earnings acceleration. YoY earnings growth of 45.5% reads as a growth-stock figure attached to a recession-resistant business. That combination usually gets re-rated higher, not lower.
The Path to $1,250 Per Share Reaching $1,250 from today’s price of $986.68 would require a gain of 26.7%.
With forward EPS of $21.69, a price of $1,250 implies a forward P/E of 58x. Our base case of $1,070.32 already implies 50x, meaning the bold target requires roughly 8x of additional multiple expansion.
Is that crazy? Not given the inputs. The 247Factor adjustment of 1.075 is driven by strong earnings momentum and 59% bullish analyst sentiment.
The catalysts are real: digitally enabled comparable sales rose 21.1% in the four weeks ending May 31 while total comps grew 12.5%. Costco is also positioned to outperform Walmart as gas prices surge because its affluent membership base absorbs fuel inflation.
And CFO Gary Millerchip announced targeted Kirkland Signature price reductions in May, a margin-positive trade in disguise. The primary risk is a consumer sentiment collapse that derails membership renewals.
Where Costco Trades Today vs Its Earnings Power At $986.68 on forward EPS of $21.69, the stock trades around 45x forward earnings. Expensive on paper. Reasonable when you consider 89.7% worldwide renewal rates and 75% executive membership penetration.
Shares sit between a 52-week low of $841.69 and high of $1,096.50. Zoom out and the long term is striking: COST is up 649.43% over the last 10 years. That is the multiple-expansion engine in action.
Is $1,250 Realistic? Here’s My Take Reaching $1,250 requires a 26.7% gain and a re-rating to roughly 58x forward earnings. That is a stretch, but it is the kind of stretch this business has earned before.
Three things need to go right: earnings growth stays north of 13% per quarter, membership economics keep compounding, and the macro avoids an outright recession. What derails it is a sharp drop in renewal rates or a sentiment-driven multiple compression. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how Costco could reach $1,250 in 2027.
Key Takeaways Costco's membership model is strengthening through deeper engagement, not just member additions.Executive members rose 9.6% year over year to 41.2 million and accounted for 75% of sales.Membership fee income climbed 10.7% to $1.37B, with renewals strong in the U.S., Canada and globally. Costco Wholesale Corporation’s (COST - Free Report) membership model appears to be gaining strength not simply through member additions, but through deeper engagement. The latest quarter saw high renewal rates, rising executive membership penetration and solid membership income growth, suggesting member loyalty remains intact.
Membership fee income increased 10.7% year over year to $1,373 million during the third quarter of fiscal 2026. While part of the gain reflected the membership fee increase implemented in September 2024, management noted that membership income still grew 7%, excluding the fee increase and foreign exchange impacts, driven by member growth and executive membership upgrades.
The most notable development was the continued expansion of executive memberships. Executive members reached 41.2 million at quarter-end, up 9.6% from the prior year, far outpacing overall paid membership growth of 4.1%. The company also launched its executive membership program in China and reported stronger-than-expected early adoption. Executive members accounted for 75% of sales, underscoring their importance to the overall membership ecosystem.
Management emphasized that executive members typically shop more often and spend more than standard members, making this mix shift particularly meaningful for the overall membership ecosystem.
Renewal metrics also remained exceptionally strong. Costco reported a 92.2% renewal rate in the United States and Canada and an 89.7% renewal rate worldwide. Management highlighted that targeted digital communication and retention initiatives helped offset pressure from the growing mix of online sign-ups, which historically renew at lower rates.
Taken together, rising executive penetration, resilient renewals and sustained membership income growth indicate that Costco is not only retaining members effectively but also increasing the value it derives from each membership relationship.
Walmart & BJ’s Wholesale: Membership Momentum Remains StrongCostco is not the only retailer benefiting from a stronger membership ecosystem. Walmart Inc. (WMT - Free Report) continues to deepen engagement through Walmart+, with membership fee revenues rising 17.4% globally in the first quarter and Walmart+ recording a record level of net additions. Management noted that membership has become an increasingly important profit stream, with members spending significantly more than non-members and utilizing benefits such as fuel savings and faster delivery.
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) reported robust membership trends. Membership fee income increased 9.9% year over year to a record $132.4 million, supported by strong member acquisition, retention and higher-tier membership penetration. Management emphasized that higher-tier members remain more engaged, shop more frequently and generate greater lifetime value.
Like Costco, both Walmart and BJ’s Wholesale are demonstrating that a growing base of loyal, higher-value members can drive recurring revenues, stronger engagement and long-term sales growth.
What the Latest Metrics Say About CostcoCostco has seen its shares tumble 1.4% over the past three months against the industry’s growth of 2.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 43.14, higher than the industry’s ratio of 31.26. However, it is trading below its 12-month median level of 46.55, indicating some moderation in valuation despite sustained investor confidence in the stock.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.4% and 13.3%, respectively. For the next fiscal year, the consensus estimate indicates a 7.8% rise in sales and 10.2% growth in earnings.
The consensus estimate for earnings per share for the current and next fiscal year has increased by 5 cents and 6 cents to $20.38 and $22.46, respectively, over the past 30 days.
Image Source: Zacks Investment Research
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Costco ve 3. čtvrtletí fiskálního roku 2026 zvýšila tržby o 11,6 % a míra obnovování členství v USA a Kanadě dosáhla 92,2 %. Akcie ale i tak klesly o více než 4 % po poslední výsledkové zprávě.
Costco (COST +0.80%) continues to prove to the market that it's a consistent performer in uncertain macroeconomic times. During its fiscal 2026 third quarter (ended May 10), the company reported 11.6% year-over-year revenue growth. Perhaps even more impressive, its U.S. and Canada memberships had a renewal rate of 92.2%.
This didn't prevent the shares from falling. As of June 22, this retail stock trades more than 4% below its price prior to the last earnings report on May 28. Should investors buy the dip?
Image source: The Motley Fool.
Same-store sales were lifted by higher gas prices Costco opened four net new warehouses last quarter, which supports revenue growth. However, the bigger contributing factor was same-store sales (SSS), which were up 9.8%. The average ticket size rose 7.3%. But it was encouraging to also see foot traffic increase by 2.4%. Excluding the impact of higher gas prices, Costco's SSS still climbed a healthy 6.6%.
The current economic backdrop plays to Costco's benefit. Inflation is at a three-year high, so households are starting to care more about saving money in an effort to find greater value within their budgets.
"Our goal is to be the first to lower prices and the last to raise them," CEO Ron Vachris said on the Q3 2026 earnings call. Products in a range of categories saw price reductions last quarter.
That sort of customer value proposition might explain why the number of membership households grew by 4.1% year over year to 82.9 million. And the renewal rate in the U.S. and Canada was 92.2%, improving by 10 basis points sequentially from the previous quarter.
Today's Change
(
0.80
%) $
7.59
Current Price
$
958.95
It's hard to pinpoint why the market reacts the way it does Costco's Q3 financial results looked solid on the surface. Therefore, it can be difficult for investors to figure out why the market reacted the way it did, bidding the company's share price down.
While revenue exceeded analyst estimates, the business posted diluted earnings per share (EPS) that matched expectations. Investors might have wanted to see a meaningful bottom-line beat.
Whatever variables you believe pressured the stock price, it's still obvious that shares trade at an expensive valuation. Investors who want to buy Costco must be comfortable with a price-to-earnings ratio of 47.8. This is what's required to own a business whose diluted EPS is projected to grow at a compound annual rate of 11.1% between fiscal 2025 and fiscal 2028, according to consensus analyst estimates.
Costco's durability in any economic environment certainly deserves a premium. But even though it's trading 13% below its record, investors should stay away from the stock to avoid the risk of severely overpaying.
