Key Takeaways Costco's China Executive Membership rollout beat expectations, with member activity above assumptions.Executive members drive 75% of global sales, shop more often and spend more per visit.With seven China warehouses, Costco sees room to expand fee income, frequency and loyalty. Costco Wholesale Corporation’s (COST - Free Report) China business is emerging as a promising catalyst for the next phase of membership growth. The company launched its Executive Membership program in China in the third quarter of fiscal 2026 and reported strong early adoption. Management said the rollout was ahead of expectations, with member activity exceeding initial assumptions. Executive members typically shop more often, spend more per visit and generate higher recurring membership income.
We note that the company’s global executive membership base reached 41.2 million at quarter-end, up 9.6% year over year. Executive members accounted for 75% of worldwide sales. Management noted that executive growth is being supported by both existing Gold Star members upgrading and new customers choosing the premium tier from the outset.
Management highlighted China alongside Japan and Korea as key international regions with immense growth potential for future warehouse development. The company currently operates seven warehouses in China. Costco has observed that new warehouse openings in China can produce outsized membership growth. Strong early adoption of the Executive Membership program signals that Chinese consumers are rapidly embracing higher-tier membership benefits.
As Costco expands its global real estate footprint with new warehouse openings, China offers a fresh runway for growth. If executive penetration continues to build as Costco opens more warehouses, China could become a larger contributor to fee income, shopping frequency and member loyalty.
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 8.3% over the past three months compared with the industry’s 2.7% decline. While shares of Dollar General have fallen 0.4%, those of Target have jumped 6.7% in the aforementioned period.
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From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 41.70, higher than the industry’s ratio of 30.64. However, the stock is trading below its 12-month median level of 46.1, 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 16.03) and Dollar General (15.67).
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The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.6% and 13.5%, respectively. For the next fiscal year, the consensus estimate indicates a 7.8% rise in sales and 10.2% growth in earnings.
The consensus estimates for earnings per share for both the current and next fiscal year have increased by 6 cents to $20.42 and $22.50, respectively, over the past 60 days.
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Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Andra AP fonden grew its position in shares of Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 284.7% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 62,622 shares of the retailer’s stock after acquiring an additional 46,342 shares during the period. Costco Wholesale comprises 0.8% of Andra AP fonden’s portfolio, making the stock its 17th largest position. Andra AP fonden’s holdings in Costco Wholesale were worth $62,398,000 at the end of the most recent quarter.
A number of other institutional investors also recently modified their holdings of the company. World Investment Advisors increased its holdings in Costco Wholesale by 8.4% in the 4th quarter. World Investment Advisors now owns 20,081 shares of the retailer’s stock valued at $15,835,000 after purchasing an additional 1,560 shares during the last quarter. Teacher Retirement System of Texas lifted its stake in Costco Wholesale by 24.5% during the fourth quarter. Teacher Retirement System of Texas now owns 140,429 shares of the retailer’s stock worth $121,098,000 after purchasing an additional 27,625 shares in the last quarter. Curtis Advisory Group LLC raised its holdings in shares of Costco Wholesale by 56.7% in the 4th quarter. Curtis Advisory Group LLC now owns 4,535 shares of the retailer’s stock valued at $3,911,000 after buying an additional 1,641 shares during the period. Perryman Financial Advisory Inc. AD purchased a new stake in shares of Costco Wholesale in the 4th quarter valued at $9,300,000. Finally, Oak Ridge Investments LLC lifted its stake in Costco Wholesale by 7.3% during the 4th quarter. Oak Ridge Investments LLC now owns 22,117 shares of the retailer’s stock worth $19,072,000 after acquiring an additional 1,496 shares in the last quarter. 68.48% of the stock is currently owned by hedge funds and other institutional investors.
Costco Wholesale Stock Down 0.5% Shares of NASDAQ:COST opened at $935.80 on Tuesday. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The firm’s 50 day moving average price is $974.46 and its 200 day moving average price is $978.81. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The stock has a market cap of $415.01 billion, a price-to-earnings ratio of 47.07, a price-to-earnings-growth ratio of 4.56 and a beta of 0.88.
Costco Wholesale (NASDAQ:COST – Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing the consensus estimate of $4.94 by ($0.01). The firm had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same quarter last year, the firm earned $4.28 EPS. As a group, equities research analysts predict that Costco Wholesale Corporation will post 20.39 earnings per share for the current fiscal year.
Costco Wholesale Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Shareholders of record on Friday, July 24th will be given a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Friday, July 24th. Costco Wholesale’s dividend payout ratio (DPR) is presently 29.58%.
Key Headlines Impacting Costco Wholesale Here are the key news stories impacting Costco Wholesale this week:
Positive Sentiment: Costco’s warehouse expansion story remains intact, with plans for 26 net-new warehouses in fiscal 2026 and a strong international pipeline that could extend its growth runway. Why Costco’s Warehouse Growth Story Is Far From Over Positive Sentiment: Analysts and market-watch articles continue to frame COST as a high-quality long-term compounder, highlighting strong sales trends, a high membership renewal rate, and appeal for retirement investors. Costco Is a No-Brainer Buy for Retirement Investors Right Now Positive Sentiment: Another upbeat take says Costco’s recent pullback from a 52-week high could be an attractive entry point if its continued double-digit comparable sales growth holds up. Price Prediction: Will Costco Hit a New-High This Year? Neutral Sentiment: Costco remains one of the most widely watched retail stocks, which can keep sentiment and trading volume elevated even without a major new catalyst. Costco Wholesale Corporation (COST) is Attracting Investor Attention: Here is What You Should Know Negative Sentiment: Shares were also pressured by a report that Costco may build standalone gas stations, a move some investors fear could weaken a key traffic-driving feature of its warehouses and hurt margins. Costco Stock (COST) Drops despite Bet on Standalone Gas Stations in Sales Push Negative Sentiment: Costco’s valuation remains a concern for some commentators, with articles noting that strong quality metrics do not necessarily mean the stock is cheap at current levels. 3 Dividend Stocks That Pass Buffett’s Test: Buy, Sell or Hold? Insider Buying and Selling at Costco Wholesale In related news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the sale, the director directly owned 4,779 shares of the company’s stock, valued at $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 0.10% of the company’s stock.
Wall Street Analysts Forecast Growth A number of brokerages recently commented on COST. Truist Financial raised their target price on Costco Wholesale from $977.00 to $1,011.00 and gave the company a “hold” rating in a report on Friday, May 29th. Citigroup initiated coverage on shares of Costco Wholesale in a research report on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 price target on the stock. HC Wainwright reissued a “buy” rating on shares of Costco Wholesale in a research note on Monday, June 1st. UBS Group lifted their price objective on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a “buy” rating in a report on Wednesday, May 20th. Finally, Wells Fargo & Company upped their target price on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the stock an “equal weight” rating in a research note on Thursday, April 9th. Twenty-two investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $1,059.07.
Read Our Latest Stock Analysis on Costco Wholesale
About Costco Wholesale (Free Report)
Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company’s product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco’s business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.
Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.
Read More Five stocks we like better than Costco Wholesale The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST – Free Report).
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Costco čeká, že fiskální rok 2026 uzavře se 940 sklady, oproti 914 na začátku roku. Firma dál rozšiřuje kapacitu i v zahraničí a vidí růstový prostor na 5 až 10 let.
Key Takeaways Costco expects to end fiscal 2026 with 940 warehouses, up from 914 at the year's start. Larger relocations, more parking and expanded gas stations aim to remove bottlenecks and add capacity. China, Korea, Japan and Europe support a five- to 10-year international expansion runway. Costco Wholesale Corporation (COST - Free Report) continues to expand its physical footprint at a sustained pace of warehouse openings. The company is targeting more than 30 net-new locations annually, supported by a growing real estate pipeline across domestic and international markets. For fiscal 2026, Costco expects 26 net new openings, with two previously planned warehouses shifting into fiscal 2027 rather than being canceled.
Costco began fiscal 2026 with 914 warehouses and expects to finish the year with 940. Most of the fiscal-year openings are planned in the United States, where the warehouse count is estimated to reach 648, while Canada and other international markets also contribute.
The opportunity extends beyond simply entering new markets. Costco is relocating selected high-volume warehouses into larger facilities with more parking and expanded gas stations. These investments are intended to remove operational bottlenecks and create additional selling capacity.
International expansion provides another long runway. Management sees meaningful opportunities across China, Korea, Japan, Spain, France and the United Kingdom, while Canada’s development pipeline is already mapped out for several years. Costco expects strong international expansion to continue over the next five to 10 years, suggesting its warehouse growth strategy remains broad, deliberate and far from mature.
Costco currently operates 933 warehouses, including 641 in the United States and Puerto Rico, 115 in Canada, 43 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.
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 6.4% over the past three months compared with the industry’s 2.5% decline. While shares of Dollar General have risen 1.3%, those of Target have jumped 5.7% in the aforementioned period.
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From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 42.27, higher than the industry’s ratio of 30.85. However, the stock is trading below its 12-month median level of 44.49, 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 16.23) and Dollar General (16.39).
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The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.6% and 13.5%, respectively. For the next fiscal year, the consensus estimate indicates a 7.8% rise in sales and 10.2% growth in earnings.
The consensus estimates for earnings per share for both the current and next fiscal year have increased by 6 cents to $20.42 and $22.50, respectively, over the past 60 days.
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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 v 3Q FY2026 zvýšila tržby o 11,58 % na 70,53 miliardy USD a čistý zisk o 15,19 % na 2,19 miliardy USD. Poplatky za členství vzrostly na 1,37 miliardy USD a míra obnovení členství byla 89,7 %.
Costco (NASDAQ:COST | COST Price Prediction) stock stands out as one of the strongest setups in the retirement investor’s playbook right now, and the case rests on three numbers that are hard to argue with. The membership economics are hardening, the balance sheet is getting stronger by the quarter, and the growth premium versus the obvious alternative keeps widening. This is a conviction position.
The Membership Machine Is Compounding Faster Costco posted Q3 FY2026 revenue of $70.53 billion, up 11.58% year over year, with net income climbing 15.19% to $2.19 billion. Membership fees alone reached $1.37 billion, up 10.7%, with a worldwide renewal rate of 89.7% and 75.0% executive-tier penetration. That is annuity-like income growing at a double-digit clip, the kind of cash-flow profile retirement portfolios tend to prize behind an equity position.
Balance Sheet Built for Payouts Cash and equivalents jumped to $18.95 billion, a 36.93% year-over-year gain, while shareholders’ equity expanded 23.54%. CFO Gary Millerchip signaled that a special dividend remains on the table, noting Costco continues to “generate excess cash beyond those priorities”. Costco has paid special dividends of $15 in 2023, $10 in 2020 and $7 in 2017. The regular quarterly dividend already stepped up to $1.47 in May 2026 from $1.30. Retirees get a growing base payout plus periodic lump-sum surprises.
The Head-to-Head With Walmart Is Not Close Walmart (NASDAQ:WMT) is the natural comparable, and it loses on the metrics that matter for a compounder. Walmart’s quarterly revenue grew just 7.3% versus Costco’s 11.58%, and quarterly earnings growth was 19.4% against Costco’s 15.19% off a much larger base. Costco’s return on equity is 29.1% versus Walmart’s 24.1%.
Yes, Walmart yields 0.85% to Costco’s 0.57%, but Walmart trades at a forward P/E of 38x versus Costco’s 42x. That is a small premium for meaningfully faster growth and a membership annuity Walmart cannot replicate.
The One Risk, Dismissed Consumer sentiment sits at 44.8, deep in pessimistic territory. Yet retail sales hit a high of $763.7 billion in May, a 90.9th percentile reading. Costco’s 89.7% renewal rate proves members do not cancel a $130 card when times get tight. They trade down into Kirkland, and Costco captures the wallet share anyway.
For retirement investors seeking a durable compounder with rising income and optional special-dividend upside, Costco around $938 screens as a durable compounder worth research.
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Costco Wholesale Club Inc. NASDAQ: COST recently reported its June sales numbers, and on first glance, it appears to be another strong month of growth for the country’s premier wholesale club.
However, the stock’s milquetoast reaction shows how much of a curve the company is graded upon.
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When your multiple looks more like a tech sector growth darling than a big box retailer, ‘good’ simply isn’t good enough.
And when you dig under the surface, the latest sales numbers highlight an unnerving trend.
Strong Headline Numbers Obfuscate Underlying WeaknessCostco released its comp sales figures for June, and it's a print that many other retailers would view with envy. Net sales for the period totaled $29.24 billion, up 10.6% year-over-year (YOY) and 7.6% when removing gas and currency effects. The board also declared a $1.47-per-share dividend, payable in August with a record date of July 24. But despite these strong headline numbers, weakness is brewing under the surface.
Overall MarketRank™91st Percentile
Analyst RatingModerate Buy
Upside/Downside12.6% Upside
Short Interest LevelHealthy
Dividend StrengthStrong
News Sentiment1.02 Insider TradingSelling Shares
Proj. Earnings Growth10.15%
See Full Analysis
Gas price volatility was a major tailwind for Costco as weary consumers turned to wholesale clubs for relief at the pump. Costco typically prices its gas below retail to drive volume and get more people into its stores (also known as a loss leader). But now that gas prices are dropping again, this tailwind is evaporating, and the June sales print tells the tale. When stripping out gas and currency, the 7.6% U.S. comp number is a stark deceleration from May’s 8.7% comps ex-gas and currency. The total drop is actually even steeper; 8.8% in June versus 12.5% in May, highlighting just how much fuel prices drove the advance.
U.S. stores might be in good shape, but the international market is a growing concern. Canadian adjusted comps plummeted again from 7.6% in April to 5.6% in May to 4.9% in June, and total international adjusted comps dropped from 8.0% in May to 7.0% in June. Soft international markets could limit upside if U.S. comp sales reaccelerate, now that fighting has resumed in Iran and gas prices are once again on the upswing.
Stock Still Trades at Extreme Valuation Compared to Other RetailersCostco remains an excellent business with a loyal membership base, strong overall sales growth (net sales up 11.6% YOY as of May’s fiscal Q3 2026 report), and a hot dog-and-soda combo that still costs just $1.50. But the stock has long been priced to imply perfect execution, and when you trade at 46 times forward earnings with a Price/Earnings Growth (PEG) ratio nearly at 4.5, investors take notice of any little dent in the armor.
The retail sector trades at about 21 times earnings, which is less than half the current valuation bestowed on COST shares. While a company with sales and membership numbers like Costco's deserves an elevated multiple, trading at more than twice the industry average while overall comp sales are declining is a blazing red flag that even a FIFA referee could see.
Prominent retailers like Walmart Inc. NASDAQ: WMT and Target Inc. NYSE: TGT trade at 40 and 18 times earnings, respectively, well below Costco’s valuation. Even a direct competitor like BJ’s Wholesale Club Holdings Inc. NYSE: BJ trades at 21 times earnings and 0.55 times sales.
Here’s a way to frame the new narrative shaping retail: the market is no longer looking for premium compounders like COST (up nearly 9% year-to-date), but cheap laggards like TGT, which is up more than 40% so far in 2026.
Technical Collapse Brings Shares Down With ItCostco’s fundamentals remain strong despite the sales hit, but the troublesome technicals are appearing in full force. The stock briefly surged to a new all-time high in May following gasoline shocks induced by the Iran war, as new members flocked to stores after filling their tanks with cheap fuel. But once war hostilities faded, so did the rally in COST shares. The stock has pulled back approximately 15% from its previous all-time high, and the technical signals under the hood aren’t pointing to a rebound anytime soon.
Shares now trade below the 50-day and 200-day moving averages, and the Relative Strength Index (RSI) has been firmly in bearish territory since the end of May. The Moving Average Convergence Divergence (MACD) indicator also shows downward momentum continuing to gain strength.
For long-term investors, this is likely not the time to sell, as the company still has 92% renewal rates and the digitally enabled comps are a bright spot at 21%. But new investors are likely better served waiting for a more attractive entry point. A deceleration doesn’t mean deterioration, but a stock trading at 46 times earnings can’t afford even a brief slowdown if it wants to maintain bullish momentum.
Should You Invest $1,000 in Costco Wholesale Right Now?Before you consider Costco Wholesale, you'll want to hear this.
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Costco v červnu zvýšila čisté tržby o 10,6 % na 29,24 miliardy USD a srovnatelné tržby o 8,8 %. Digitálně podpořené srovnatelné tržby vzrostly o 20,9 %.
Key Takeaways Costco's June net sales rose 10.6% to $29.24 billion, while comparable sales increased 8.8%.Digitally enabled comparable sales climbed 20.9%, reinforcing growth beyond Costco's warehouses.Costco trades at 41.30 times forward earnings, well above the industry's 30.05 multiple. Costco Wholesale Corporation's (COST - Free Report) valuation remains among the highest in the retail sector, leaving little room for operational missteps. That makes monthly sales updates closely monitored by investors. June's sales results once again highlighted resilient consumer demand, decent comparable sales growth and strong digital momentum, but are these trends enough to support the stock's premium multiple going forward?
A Closer Look at Costco's June SalesFor a retailer trading at a premium multiple, the quality and consistency of growth matter as much as the pace. Costco’s June report certainly provided encouraging evidence. Net sales increased 10.6% year over year to $29.24 billion during the five weeks ended July 5, 2026. Comparable sales rose 8.8% companywide, while adjusted comparable sales, excluding gasoline price and foreign exchange impacts, advanced 7%. Those figures point to broad-based demand rather than growth driven solely by external factors.
Although June comparable sales remained strong, they moderated from the 12.5% and 11.6% growth recorded in May and April, respectively. The sequential slowdown does not undermine Costco's performance, but it highlights the broad-based growth needed to support its premium valuation.
Digital performance remained another bright spot. Costco's digitally enabled comparable sales climbed 20.9% on a reported basis and 21.5% after adjusting for fuel and currency effects. Sustained online growth of this magnitude complements warehouse traffic and reinforces the company's ability to expand sales beyond its physical footprint without compromising its value proposition.
Do Costco’s Latest Metrics Justify Its Premium Valuation?Costco trades at a forward 12-month price-to-earnings ratio of 41.30, well above the industry’s ratio of 30.05. The premium reflects investors' confidence in the company's membership-driven business model, recurring fee income, resilient sales growth and disciplined execution. Even so, the multiple remains below its 12-month median of 46.32, indicating that valuation has moderated from historical levels.
The premium is even more evident when compared with mass-merchandise retailers. Costco continues to command a meaningful premium over Dollar General Corporation (DG - Free Report) and Target Corporation (TGT - Free Report) . Costco is trading at a premium to Dollar General (forward 12-month P/E of 15.53) and Target (15.73).
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Why Has Costco Stock Pulled Back?Despite another month of resilient sales growth, Costco shares have dropped 6.5% over the past month, modestly underperforming the industry's 5.6% decline. The softness may be tied to the stock’s rich valuation rather than to any deterioration in underlying fundamentals. The moderation in June’s comparable sales growth from the stronger gains recorded in May and April may have also tempered investor enthusiasm.
Over the same period, shares of Dollar General have gained 2.2%, while Target has advanced 1.5%.
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How Are Costco's Earnings Estimates Trending?The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.6% 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 the current and next fiscal year has increased by 6 cents and 8 cents to $20.38 and $22.47, respectively, over the past 60 days. The upward revisions suggest that analysts remain confident in Costco's ability to deliver steady earnings growth.
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Can Costco Continue to Command a Premium?Costco’s June sales once again reinforced the strength of its membership-driven business model, supported by healthy comparable sales growth and continued digital momentum. Improving earnings estimates further lend support. However, given its significant premium to the industry, Costco will need to sustain strong execution to justify its valuation and drive the stock higher.
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 zvýšila ve 3. fiskálním čtvrtletí roku 2026 tržby z členských poplatků o 10,7 % na 1,37 miliardy USD. Udržela si silnou loajalitu členů, když míra obnovení členství dosáhla 92,2 % v USA a Kanadě.
Costco (COST +0.36%) has never been a cheap stock. But premium businesses rarely are. The warehouse retailer has spent decades building one of the strongest business models in retail, and several long-term trends suggest it could continue rewarding shareholders well into the next decade.
Membership has its privileges The biggest advantage for Costco isn't bulk groceries or discounted televisions. It's membership. During fiscal 2025, Costco generated approximately $5.32 billion in membership fee revenue, up 10% from $4.83 billion the prior year. Even more impressive, its U.S. and Canada membership renewal rate clocked in at 92.3%, while its worldwide renewal rate was 89.8%. Those are among the highest retention rates of any subscription-based business and help explain why membership fees remain one of Costco's biggest competitive advantages.
Image source: Getty Images.
Costco's membership engine has continued to strengthen this year, too. During the third quarter of fiscal 2026, membership fee revenue climbed 10.7% year over year to $1.37 billion, outpacing overall sales growth. Paid memberships increased 4.1%, while executive memberships (the company's highest-spending customers) grew 9.6%. Worth noting: renewal rates also remained strong at 92.2% in the U.S. and Canada and 89.7% worldwide, reinforcing the stability of Costco's recurring revenue stream.
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That recurring revenue gives Costco tremendous flexibility. It can afford to sell merchandise at thinner margins than most retailers because memberships provide a reliable source of profit. That pricing advantage keeps customers coming back, creating a virtuous cycle that's difficult for competitors to replicate. Meanwhile, the company continues to expand quite rapidly.
Penetrating new markets Costco's physical footprint continues to expand alongside its membership base. As of the third quarter of fiscal 2026, the company operated 931 warehouses worldwide, including 639 in the United States and Puerto Rico. Management continues to see significant opportunity for new locations, too, particularly in international markets where warehouse clubs remain relatively underpenetrated.
Every new warehouse not only drives additional merchandise sales but also brings in thousands of new paying members, reinforcing Costco's recurring membership revenue model. At the same time, e-commerce is becoming a bigger contributor, too. For Q3 2026, the company reported digitally enabled comparable sales growth of 21.5%.
Balance sheet remains strong Costco's financial position remains one of its greatest strengths. During fiscal 2025, the company generated $13.3 billion in operating cash flow and ended the year with about $14 billion in cash and cash equivalents. That financial strength allows Costco to fund new warehouse openings, invest billions in distribution infrastructure and technology, raise its regular dividend, and continue returning capital to shareholders without placing significant strain on its balance sheet.
Of course, you can't ignore valuation. Costco trades at a premium earnings multiple compared to other retailers, leaving less room for disappointment if consumer spending weakens or growth slows.
Still, it's difficult to find many retailers with Costco's combination of recurring membership income, exceptionally loyal customers, consistent store expansion, and strong cash generation. Those advantages have allowed the company to grow through multiple economic cycles, and there's little reason to believe those competitive strengths will disappear before 2030.
Costco Wholesale Corporation (NASDAQ:COST, XETRA:CTO) shares fell about 4% to $913 on Wednesday after the warehouse retailer reported a moderation in June comparable sales growth, though Bank of America analysts maintained their ‘Buy’ rating, arguing the company's value-focused strategy and affluent customer base should continue to support market share gains.
For the five weeks ended July 5, total sales rose 10.6%, while US comparable sales excluding gasoline increased 7.6%. Bank of America noted the result represented a slowdown on both a one-year and two-year stacked basis following a stronger May.
The analysts wrote that Costco's "philosophy of leading with value and its weighting towards a higher income consumer gives us confidence share gains across categories will continue."
Non-food comparable sales increased by a mid- to high-single-digit percentage, driven by jewelry, home furnishings and major appliances. Management also highlighted higher prices in consumer electronics and appliances due to inflation in memory chip prices.
Fresh food comparable sales rose by a mid-single-digit percentage, supported by bakery and meat, while food and sundries posted low- to mid-single-digit growth led by food, candy and frozen products.
Overall inflation remained in the low- to mid-single-digit range, with food inflation at the lower end due to egg price deflation and non-food inflation at the higher end because of rising memory prices.
Customer traffic increased 3.2% during the month, easing from 3.9% in May, while average ticket growth excluding gasoline and foreign exchange was 3.7%, compared with 4% in the prior month.
Bank of America also noted Costco is now lapping the rollout of extended shopping hours introduced last July for executive members and later for all members. Management previously estimated the additional hours contributed roughly one percentage point to weekly US sales following their introduction.
Elsewhere, ancillary sales growth slowed as gasoline prices eased, while comparable sales growth moderated in Canada and other international markets. Digital comparable sales remained strong, rising 21.5% in June and improving sequentially from the previous month.
The analysts also noted Costco shifted its member appreciation days to coincide with Amazon's Prime Day and other competing promotional events.
Costco čelí hromadné žalobě kvůli proteinovému prášku Orgain, který měl podle žaloby obsahovat arsen, kadmium a olovo, aniž to firma uvedla. Produkt byl přitom prodáván jako „good clean fuel“.
Costco is facing a class-action lawsuit accusing the wholesale retailer of selling protein powders containing high levels of toxic metals – and misleading consumers by marketing the products as “good clean fuel.”
The proposed class action, filed earlier this week in federal court for the Western District of Washington, alleged Costco failed to disclose that its Orgain Organic Plant-Based Protein Powder contained significant levels of arsenic, cadmium and lead, which can have adverse health effects.
Plaintiffs are seeking punitive damages and a court order forcing Costco to disclose the presence of heavy metals – accusing the retailer of unfair trade practices and violating numerous state laws and saying it “knew or, at a minimum, should have known” about the metals.
The lawsuit focuses on Costco’s marketing of Orgain Organic Plant-Based Protein Powder. Orgain “Many consumers who buy and use protein powder do so routinely as part of a continuing focus on their fitness and health,” Steve Berman, managing partner and co-founder of Hagens Berman, the Seattle-based law firm representing the plaintiffs, said in a statement.
“These same health-conscious consumers have unknowingly ingested alarming levels of toxic heavy metals – lead, cadmium and arsenic – again and again, trusting that Costco’s quality assurance would not allow something like this to happen.”
Costco and Orgain did not immediately respond to The Post’s request for comment.
The lawsuit filed Tuesday cited an investigation by the Clean Label Project and Consumer Reports, which found that Orgain’s Vanilla Bean protein powder exceeded its “level of concern” for lead.
Independent laboratory testing conducted by one of the plaintiffs and plaintiffs’ counsel confirmed the presence of heavy metals in Orgain’s Vanilla Bean and Chocolate Fudge powders, according to the suit.
Orgain has said its products are safe for daily use despite the Consumer Reports investigation, and their protein powders are not facing any recalls – currently being sold by Costco and other major retailers including Amazon, Target and Walmart.
There is no known safe level of exposure to heavy metals, and exposure can pose serious health risks, including cancers; liver, kidney and brain damage; reproductive disorders; skin disorders; and cardiovascular disease, according to the World Health Organization and US Food & Drug Administration.
The protein powder is not facing any recalls and is currently being sold by Costco and other major retailers. USA TODAY Network via Reuters Connect Yet Costco sold the product in stores and online without disclosing the presence of heavy metals, calling it “good clean fuel,” saying the powders have “quality ingredients and higher standards” and that Orgain is “relentless about quality,” according to the lawsuit.
The suit also alleged that consumers purchased the protein powders at a higher price – about $30 per container – because they believed they were purchasing a health supplement, and they would have opted for cheaper alternatives if they were made aware of the presence of toxic metals.
As the market for protein powders and other health supplements has exploded, so has the presence of toxic heavy metals in these products, according to the Consumer Reports investigation.
More than two-thirds of the 23 protein powders and ready-to-drink shakes tested by Consumer Reports contained more lead than food safety experts said would be safe to consume in a day – some by more than 10 times.
Costco v červnu zvýšila srovnatelné tržby o 8,8 % a čisté tržby o 10,6 % na 29,24 miliardy USD. Digitálně podpořené srovnatelné tržby vzrostly o 20,9 %.
Key Takeaways Costco's June total comparable sales rose 8.8%, slowing from May and April but showing healthy demand.Digitally enabled comparable sales grew 20.9% in June, continuing strong online momentum.Costco's June net sales rose 10.6% to $29.24 billion, supported by value and digital strength. Costco Wholesale Corporation’s (COST - Free Report) June sales data showed that consumer demand remains resilient, even as comparable sales growth moderated. The company continued to benefit from its value-driven pricing, quality merchandise, strong digital momentum and broad warehouse footprint, which are helping attract shoppers in a cautious consumer environment.
Sneak Peek Into Costco’s Comparable Sales PerformanceFor the five weeks ended July 5, 2026, Costco reported an 8.8% year-over-year increase in total comparable sales. Regionally, comparable sales rose 10.6% in the United States, 3.7% in Canada and 4.7% in Other International markets. While this marked a slowdown from total comparable sales growth of 12.5% in May and 11.6% in April, the June performance still reflected healthy underlying demand.
Excluding the effects of gasoline prices and foreign exchange, U.S. comparable sales increased 7.6%, while Canada and Other International markets posted gains of 4.9% and 5.6%, respectively. Overall, total comparable sales, excluding these factors, rose 7% in June, following increases of 8% in May and 7.8% in April.
Digitally enabled comparable sales remained a standout, rising 20.9% in June, or 21.5% after adjusting for fuel and currency impacts. This followed gains of 21.1% in May and 18.8% in April, underscoring sustained momentum in Costco’s online channel.
Costco’s net sales for June increased 10.6% to $29.24 billion from $26.44 billion in the year-ago period. Although growth moderated from May’s 14.5% increase and April’s 13% gain, the retailer’s June performance suggests that its value proposition and digital strength continue to support solid sales momentum.
How Costco Compares With Walmart and TargetWalmart Inc. (WMT - Free Report) continues to post resilient comparable sales growth despite a cautious consumer backdrop. Walmart reported 4.1% U.S. comparable sales growth (excluding fuel) in first-quarter fiscal 2027, supported by a 3% increase in transactions and 26% global e-commerce growth. Walmart also benefited from a stronger marketplace, advertising and Walmart+ membership performance, reinforcing traffic, customer engagement and market-share gains while sustaining healthy comparable sales momentum.
Meanwhile, Target Corporation (TGT - Free Report) is also demonstrating solid comparable sales momentum through strong traffic and digital growth. Target delivered 5.6% comparable sales growth in first-quarter 2026, driven by a 4.4% increase in traffic and 8.9% digital comparable sales growth, with strength across all six merchandise categories. Target continues to enhance comparable sales through merchandising innovation, Target Circle 360, same-day delivery and an improved omnichannel experience, positioning Target for sustained long-term growth.
What the Latest Metrics Say About CostcoCostco has seen its shares tumble 4.5% over the past three months compared with the industry’s decline of 3%.
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From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 43.02, higher than the industry’s ratio of 30.43. However, it is trading below its 12-month median level of 46.34, indicating some moderation in valuation despite sustained investor confidence in the stock.
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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 the current and next fiscal year has increased by 6 cents and 7 cents to $20.38 and $22.46, respectively, over the past 60 days.
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Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ISSAQUAH, Wash., July 08, 2026 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $29.24 billion for the retail month of June, the five weeks ended July 5, 2026, an increase of 10.6 percent from $26.44 billion last year.
Net sales for the first 44 weeks were $250.43 billion, an increase of 10.1 percent from $227.46 billion last year.
Comparable sales for the periods ended July 5, 2026, were as follows:
5 Weeks 44 WeeksU.S.10.6% 7.9%Canada3.7% 8.5%Other International4.7% 10.1% Total Company8.8% 8.3%Digitally-Enabled20.9% 21.5% Comparable sales excluding the impacts from changes in gasoline prices and foreign exchange were as follows:
5 Weeks 44 WeeksU.S.7.6% 6.7%Canada4.9% 7.2%Other International5.6% 6.5% Total Company7.0% 6.7%Digitally-Enabled21.5% 21.1% Additional discussion of these results is available in a pre-recorded message. It can be accessed by visiting investor.costco.com (click on “Events & Presentations”). This message will be available through 4:00 p.m. (PT) on Wednesday, July 15, 2026.
The Company also announced today that its Board of Directors has declared a quarterly cash dividend on Costco common stock of $1.47 per share. The quarterly dividend is payable August 7, 2026, to shareholders of record at the close of business on July 24, 2026.
Costco currently operates 933 warehouses, including 641 in the United States and Puerto Rico, 115 in Canada, 43 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, Australia, and China.
Certain statements contained in this document and the pre-recorded message 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 and global conflicts), 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.
Tržby Costco ve fiskálním roce 2025 vzrostly na 275,24 miliardy USD, meziročně o 8,17 %. Ve 3. čtvrtletí FY2026 tržby vzrostly na 70,53 miliardy USD, o 11,58 %.
$275.24 billion. That is what Costco (NASDAQ:COST | COST Price Prediction) rang up in revenue for fiscal year 2025, representing a +8.17% year-over-year haul that pushed the warehouse operator past a quarter-trillion dollars in annual sales. The company followed this impressive report with a Q3 FY2026 quarter that showed this growth machine is still accelerating in the right direction, posting $70.53 billion in revenue, up 11.58% year over year.
What It Means A quarter-trillion-dollar retailer that keeps compounding sales at a double-digit clip is a rare animal. Costco is making this happen, while continuing to open physical stores. Management ended Q3 with 931 warehouses across 14 countries and told investors it now targets “30-plus net new openings per year in the coming years”, with roughly 12 new warehouses still scheduled for the remainder of FY2026.
The company’s membership model is what makes Costco’s top line so durable. Membership fees hit $1.37 billion in the quarter, up 10.7% year over year, on a 89.7% worldwide renewal rate and 82.9 million paid members. Executive memberships now account for 75.0% of net sales. Additionally, comparable sales rose 9.8% (6.6% adjusted for gas and FX), with digitally enabled comps up 21.5% and e-commerce site and app traffic up 37%.
Profitability is scaling with the company’s top line. FY2025 net income reached $8.099 billion (+9.94%), operating cash flow rose to $13.335 billion (+17.6%), and free cash flow expanded 18.22% to $7.837 billion. Q3 FY2026 net income came in at $2.19 billion, up 15.19%, on $4.93 diluted EPS that edged the $4.923 consensus.
Bull Case I think Costco’s bull case rests on three data points that keep pointing the same direction.
First, membership economics. A 89.7% worldwide renewal rate paired with 92.2% in the U.S. and Canada means members overwhelmingly keep paying to shop. Executive memberships grew 9.6% year over year to 41.2 million, and CFO Gary Millerchip told the call the company is “seeing increases in membership upgrades from gold to executive”. That is recurring, high-margin income that flows straight through to the company’s bottom line.
Second, unit growth. Costco’s 30-plus net new openings per year cadence, backed by approximately $6.5 billion in FY26 capital expenditure, gives investors a physical, measurable growth lever. CEO Ron Vachris described a runway that stretches well beyond North America, with “very strong international expansion over the next five to ten years” across Canada, China, Korea, Japan, France, Spain, and the U.K.
Third, balance sheet and digital flywheel. Cash and equivalents jumped 36.93% year over year to $18.95 billion, and shareholders’ equity climbed 23.54% to $33.51 billion. Importantly, the company’s digital segment is compounding on top of the physical footprint. In fact, digitally-enabled comps were up 21.5%, same-day delivery averaging under 45 minutes in the U.S. with a 4.8 out of 5 satisfaction rating, and triple-digit growth in AI-search-driven traffic with the highest conversion rate of any channel.
Even the macro cross-currents work in Costco’s favor. Consumer sentiment sits at a 44.8 reading, well below the 60 recessionary threshold, yet May 2026 total PCE reached $22,059.8 billion, with food spending at $1,566.8 billion versus $1,518.3 billion a year earlier. Nervous households trade down to value, and Costco is the value.
Bottom Line A retailer that clears $275.235 billion in annual revenue while still growing comps 9.8%, adding 30-plus warehouses per year, and renewing members at 89.7% is compounding on multiple axes at once.
Long-term holders should watch three data points from here: the pace of the remaining 12 FY2026 warehouse openings toward the 940 target, the trajectory of executive membership penetration above 75.0% of net sales, and any decision on the special dividend that Millerchip described as “typically the most effective way to return excess cash”. The quarter-trillion-dollar strategy is still adding warehouses, members, and cash faster than it is spending them.
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.
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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).
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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.
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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.
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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).
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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.
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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.
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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).
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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.
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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.
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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.
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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.
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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.
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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.
