Costco Wholesale (NASDAQ:COST) Announces Earnings Results

Costco Wholesale (NASDAQ:COST) issued its earnings results on Thursday. The retailer reported $4.58 earnings per share for the quarter, topping the consensus estimate of $4.55 by $0.03, FiscalAI reports. Costco Wholesale had a return on equity of 29.37% and a net margin of 2.99%.The company had revenue of $69.60 billion for the quarter, compared to analyst estimates of $68.96 billion. During the same period in the prior year, the firm posted $4.02 EPS. The business’s revenue was up 9.2% compared to the same quarter last year.

Here are the key takeaways from Costco Wholesale’s conference call:

• Strong quarterly performance — Net income was $2.035 billion (EPS $4.58, +~14%), net sales $68.24 billion (+9.1%), comparable sales +7.4% and digitally enabled comps +22.6%, with membership fee income up 13.6% and 82.1 million paid members.
• Tariff uncertainty — The IEEPA tariffs were replaced by new global tariffs for at least 150 days, refund timing and amounts remain unclear, and the company faces complexity tracking past tariff pass‑throughs while committing to return any recoveries to members.
• Digital and in-warehouse tech gains — Mobile wallet, pharmacy pay‑ahead, pre-scan, automated pay stations and personalization are speeding checkout and boosting sales (personalized carousels drove over $470 million of e‑commerce sales); site traffic was up 32% and app traffic 45%.
• Margin and cost dynamics are mixed — Reported gross margin improved modestly and core‑on‑core margin rose 22 bps, but SG&A was slightly higher (including increased liability reserves) and there were offsets from higher executive rewards, lower co‑brand card income and a LIFO charge.
• Growth pipeline and real estate strategy — Costco opened 4 warehouses this quarter (924 total), expects ~28 net new openings in FY26 and is targeting 30+ per year going forward while pursuing creative urban/infill formats and continued international expansion.

Costco Wholesale Stock Performance

Shares of COST opened at $998.10 on Friday. The company has a market capitalization of $443.03 billion, a PE ratio of 51.90, a price-to-earnings-growth ratio of 4.70 and a beta of 1.01. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.04 and a quick ratio of 0.53. Costco Wholesale has a one year low of $844.06 and a one year high of $1,067.08. The company’s fifty day moving average price is $961.64 and its 200 day moving average price is $936.05.

Costco Wholesale Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Friday, January 30th were issued a $1.30 dividend. This represents a $5.20 annualized dividend and a yield of 0.5%. The ex-dividend date was Friday, January 30th. Costco Wholesale’s dividend payout ratio (DPR) is 27.85%.

Insider Activity at Costco Wholesale

In related news, EVP Javier Polit sold 558 shares of the business’s stock in a transaction dated Tuesday, December 30th. The stock was sold at an average price of $862.89, for a total transaction of $481,492.62. Following the completion of the transaction, the executive vice president owned 10,190 shares of the company’s stock, valued at approximately $8,792,849.10. The trade was a 5.19% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Susan L. Decker sold 458 shares of the stock in a transaction that occurred on Friday, January 16th. The shares were sold at an average price of $955.00, for a total value of $437,390.00. Following the sale, the director owned 8,532 shares of the company’s stock, valued at approximately $8,148,060. The trade was a 5.09% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 6,915 shares of company stock valued at $6,317,097. 0.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Mcguire Capital Advisors Inc. bought a new position in Costco Wholesale in the fourth quarter worth $28,000. Imprint Wealth LLC bought a new stake in Costco Wholesale in the 3rd quarter valued at $36,000. Itau Unibanco Holding S.A. increased its holdings in Costco Wholesale by 527.3% in the 4th quarter. Itau Unibanco Holding S.A. now owns 69 shares of the retailer’s stock valued at $60,000 after buying an additional 58 shares during the period. Swiss RE Ltd. acquired a new position in shares of Costco Wholesale in the 4th quarter valued at $69,000. Finally, Gilpin Wealth Management LLC bought a new position in shares of Costco Wholesale during the 4th quarter worth about $71,000. 68.48% of the stock is owned by institutional investors.

More Costco Wholesale News

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Q2 double‑beat — Costco reported revenue of ~$69.6B and GAAP EPS of $4.58, with comp‑store strength and membership fee growth that underpin near‑term sales momentum. This is the main catalyst supporting the rally. Costco Wholesale beats quarterly comparable sales estimates
• Positive Sentiment: Analyst upgrades and higher price targets — several brokers (notably a large Street high by BMO cited in coverage) raised targets and reiterated outperform/overweight views, adding upward pressure. Costco Stock Scores New Street‑High Price Target
• Positive Sentiment: Capital returns & balance‑sheet strength — commentary and notes on buybacks, a rising cash pile and the “special dividend” thesis are attracting income/return‑focused investors and support further upside. Costco Wholesale: Buy Now, Get Paid Later as Cash and Returns Build
• Positive Sentiment: Digital and membership momentum — online sales growth (~22.6%) and rising membership income are cited on the call as durable drivers of mix and margins, supporting investor confidence. Costco Digital Innovations Fuel 22.6% Online Growth
• Neutral Sentiment: Mixed analyst moves — while many raised targets, a few (e.g., Goldman) trimmed targets even as they kept buy calls; that creates a mix of conviction levels among institutional holders. Goldman Sachs adjusts price target on Costco
• Neutral Sentiment: Muted market reaction — despite the beat, some headlines note a tepid price move (and some pre‑market weakness) as investors weigh valuation metrics versus growth. That can lead to intraday volatility. Costco Stock Exhibits Muted Reaction Amid Double‑Beat Earnings Report
• Negative Sentiment: Valuation concerns and “red flags” narrative — some outlets argue the stock is expensive (high P/E, PEG) and list risks that could cap upside; those narratives are pressuring more value‑sensitive investors. Is Costco Too Expensive? 3 Red Flags That Could Send Shares Sliding

Wall Street Analysts Forecast Growth

Several brokerages recently commented on COST. Roth Mkm reissued a “sell” rating on shares of Costco Wholesale in a research note on Wednesday, February 4th. HSBC cut their price objective on shares of Costco Wholesale from $1,060.00 to $1,045.00 and set a “hold” rating on the stock in a research report on Friday, December 12th. BTIG Research reissued a “buy” rating and issued a $1,115.00 target price on shares of Costco Wholesale in a research report on Thursday. Weiss Ratings restated a “hold (c+)” rating on shares of Costco Wholesale in a research note on Monday, December 29th. Finally, Robert W. Baird set a $1,100.00 price target on shares of Costco Wholesale in a report on Thursday, February 5th. Twenty-two analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $1,035.35.

About Costco Wholesale

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.