Costco Wholesale Corporation

NASDAQ Global Select
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Bullish +62

Costco Wholesale stock stands at EUR 811.65 as sales rise 11.2 percent

Analyst downgrade Earnings report AI-generated analysis

📈 Costco reported fiscal fourth-quarter net sales growth of 11.2% to USD 93.9 billion, with total revenue reaching USD 95.7 billion.

💰 Net income increased to USD 3.0 billion and diluted EPS rose to USD 6.75, aided by a non-recurring tariff refund benefit.

📱 Digital comparable sales surged 19.5%, significantly outpacing the adjusted organic growth rate of 6.7%.

🏢 The company operates 939 warehouses globally and generated annual operating cash flow of USD 15.8 billion in fiscal 2026.

👥 Paid memberships reached 84.1 million with a worldwide renewal rate improving to 89.8% year over year.

⚖️ Analyst sentiment is mixed as one analyst lowered the price target to USD 1,050 while retaining a hold-equivalent rating.

📉 Membership growth is currently lagging behind the rapid pace of overall sales expansion according to company commentary.

💵 Full-year fiscal results showed net sales of USD 297.2 billion and net income of USD 9.2 billion.

Bullish Signals
  • Costco reported a robust 11.2% increase in net sales to USD 93.9 billion for the fiscal fourth quarter, demonstrating strong demand.
  • Digital comparable sales advanced 19.5%, significantly outperforming the adjusted organic growth rate of 6.7%.
  • The company generated annual operating cash flow of USD 15.8 billion in fiscal 2026, up from USD 13.3 billion the prior year.
  • Paid memberships reached 84.1 million with a worldwide renewal rate improving to 89.8%, indicating strong customer retention.
  • Net income increased to USD 3.0 billion and diluted EPS rose to USD 6.75, reflecting improved profitability.
Risk Factors
  • One analyst lowered the price target from USD 1,100 to USD 1,050 while retaining a hold-equivalent rating.
  • Management noted that membership growth is currently slower than the pace of overall sales expansion.
Full Analysis
Costco Wholesale Corp. reported strong fiscal fourth-quarter results with net sales rising 11.2% to USD 93.9 billion, driven by robust demand for its membership model. Total revenue, inclusive of membership fees, reached USD 95.7 billion, while net income climbed to USD 3.0 billion. Diluted earnings per share increased to USD 6.75, bolstered by a non-recurring tariff refund benefit of USD 0.15 per share. The retailer demonstrated significant digital growth with digitally enabled comparable sales surging 19.5%, more than double the adjusted organic growth rate of 6.7%. Operating scale expanded across 939 warehouses globally, and annual operating cash flow grew to USD 15.8 billion for fiscal 2026. Paid memberships reached 84.1 million with a worldwide renewal rate improving slightly to 89.8%. Despite the strong operational performance, Costco faces mixed analyst sentiment as one analyst lowered its price target from USD 1,100 to USD 1,050 while maintaining a hold rating. The company noted that membership growth is currently slower than the pace of overall sales expansion. On a full-year basis, net sales totaled USD 297.2 billion and net income reached USD 9.2 billion.