EarningsQ4 2026 Earnings Report
MX:COST Q4 2026 EPS Results
Actual EPS$122.70
Consensus EPS$118.89
Beat/MissBeat by +$3.82
One Year Ago EPS$106.71
MX:COST Q4 2026 Revenue Results
Actual Revenue$1.74T
Expected Revenue$1.73T
Beat/MissBeat by +$13.75B
YoY Revenue Growth+11.10%
Earnings Announcement Details
QuarterQ4 2026
Date09/24/2026
TimeAfter Close
Conference CallThursday, September 24, 2026
MX:COST Upcoming Earnings
Costco's next earnings date is estimated for December 10, 2026, based on past reporting schedules.
Q4 2026 Earnings Call Audio
MX:COST Q4 2026 Earnings Call
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Q4 2026 Earnings Slide Deck
Q4 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Costco reported double-digit sales and earnings growth, broad-based comparable-sales momentum, record or all-time-high performance in several operating and membership metrics, expanding digital engagement, and continued warehouse and infrastructure growth. The main challenges were lower reported gross margin, a significantly higher LIFO charge, membership-growth normalization, inflation and tariff uncertainty, and ongoing pharmacy pricing headwinds, but management described these issues as manageable and highlighted continued operating momentum.Company Guidance
Strong Quarterly Sales and Earnings Growth
Fourth-quarter net sales were $93.87 billion, up 11.2% from $84.43 billion in Q4 2025. Net income was $2.998 billion, or $6.75 per diluted share; excluding the $0.15 per-share nonrecurring tariff-refund benefit, net income and EPS increased 12.3% and 12.4%, respectively.
Solid Comparable-Sales Performance
Comparable sales increased 9.4% in Q4, or 6.7% adjusted for gasoline price inflation and foreign exchange. Excluding gas sales entirely and adjusting for foreign exchange, comparable sales were also up 6.7%. Worldwide traffic increased 3.3%, while average transaction value rose 5.9%, or 3.3% excluding gas inflation and FX.
Warehouse Expansion Plan
Costco opened 28 warehouses during fiscal year 2026, including three relocations, for 25 net new buildings, bringing its worldwide warehouse count to 939. The company plans to open 33 warehouses in fiscal year 2027, including five relocations, as it builds toward a goal of 30 net new warehouses per year.
Broad-Based Merchandise Growth and Market-Share Gains
The company delivered top-line sales growth of over 10% for fiscal year 2026 and expanded market share by deepening member loyalty and capturing a larger share of wallet. Growth was spread across departments including meat, bakery, majors, electronics, and health and beauty aids.
Strong Ancillary-Business Performance
Gas, pharmacy, and travel all grew faster than Costco's overall growth rate. Ancillary businesses reported comparable-sales growth in the high 20s during the quarter.
Record Gas-Business Performance
Costco's gas business had a record year, driven by members seeking value amid rising pump prices. The penetration of U.S. member households purchasing gas reached an all-time high, and Costco estimated that it saved members over $3.2 billion versus average pump prices in its operating markets. The company also expanded 26 existing U.S. gas stations at its highest-volume locations.
Pharmacy Sales and Digital Programs
Pharmacy sales grew nearly 20%, supported by expanded digital capabilities and programs including GLP-1 and fertility offerings, Rx Mobile Pay Ahead, and Pickup Lockers. Many U.S. buildings achieved Rx Pay Ahead penetration of more than 1/3 of prescriptions, contributing to double-digit script growth for the year.
New Medicare Advantage Partnership
Costco announced a new partnership with SCAN Health Systems to develop Medicare Advantage benefits intended to help members get more value from their health care.
Travel Business Growth
Vacation packages, cruises, and car rentals all grew double digits during fiscal year 2026. Costco sent over 750,000 members on cruises, an increase of 16%.
Rapid Digital Sales and Delivery Expansion
Digitally enabled sales exceeded $33 billion in fiscal year 2026, increasing more than 20%. Digitally enabled comparable sales rose 19.5%, or 19.8% adjusted for FX. Costco expanded its Uber Eats partnership from 17 states to the entire U.S. and expanded its DoorDash partnership to include the U.S.; average delivery times across all three platforms were under an hour.
Incremental Digital Engagement
Costco said sales through the new delivery marketplaces were mostly incremental, with limited impact on its core warehouse grocery business. Total site and app traffic increased 30%, and the company said third-party delivery generally provides additional shopping trips rather than replacing warehouse visits.
Membership Quality and Renewal Improvements
Executive membership penetration reached an all-time high. Costco ended Q4 with 42.3 million paid executive members, up 9.4% year over year, 84.1 million total paid members, up 3.8%, and 150.4 million cardholders, up 3.6%. The U.S. and Canada renewal rate increased to 92.3%, while the worldwide renewal rate rose to 89.8%, with both rates up 10 basis points from the prior quarter.
Younger-Member Growth
The member base under age 40 has grown nearly 60% since COVID and now represents more than 1/4 of the total membership base. Costco also reported continued growth in new-member sign-ups through digital channels and said younger members grow into higher-spending members over time.
Core Gross-Margin and SG&A Productivity
Excluding gas inflation, the reported gross-margin rate was higher by 20 basis points. Core-on-core margins on their own sales increased 18 basis points excluding tariff refunds and reinvestments, driven by supply-chain efficiencies, higher labor productivity in meat, bakery, and deli, and favorable sales mix. Reported SG&A improved 27 basis points to 8.94% from 9.21%.
Merchandising Strength and Kirkland Signature Value
Nonfoods comparable sales increased mid- to high-single digits, while fresh comparable sales increased mid-single digits. In-house pastries grew by over 100% in the quarter. Kirkland Signature products continued to offer savings of at least 15% to 20% versus national-brand equivalents, with equal or better quality, and Costco implemented price reductions on items including walnuts, coffee, facial towels, and black pepper.
Personalization and AI-Search Growth
Personalized initiatives generated triple-digit sales growth in Q4, and 10% of all Costco.com orders included a personalized item. Traffic to Costco's site from AI search grew triple digits for the second consecutive quarter and had the highest conversion rate of all site traffic.
Capital Investment in Growth Infrastructure
Capital expenditures were $2.21 billion in Q4 and $6.4 billion for fiscal year 2026. Costco plans approximately $7.5 billion of capital expenditures in fiscal year 2027, primarily for the warehouse pipeline and continued outsized supply-chain investment to support future warehouse and e-commerce sales growth.
Tariff Refunds Reinvested in Member Value
Costco received $184 million in Q4 tariff refunds, consisting of $174 million in refunds and $10 million in interest, representing a little more than 1/3 of the total refunds expected. The company reinvested some of the proceeds through price reductions on everyday produce, meat, beverages, home furnishings, hardware, and other items, and said unit growth responded very well.
Strong Employee Base and Operating Culture
Management highlighted its 355,000 employees worldwide and credited their dedication to Costco's code of ethics, member service, and consistent financial results.
MX:COST Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed