Costco Q4 2026 EPS Rises 15% as Sales Reach $93.9 Billion

Costco Wholesale reported double-digit profit and sales growth for the fourth quarter of fiscal 2026, supported by higher comparable traffic, a larger average ticket and strong digitally enabled sales. Net income rose 14.9% to $3.00 billion, while diluted earnings per share increased 15.0% to $6.75.

The quarter included a nonrecurring benefit of $0.15 per diluted share from IEEPA tariff refunds, net of partial reinvestment. Excluding that benefit, Costco said net income grew 12.3% and diluted EPS increased 12.4%.

Sales and digital growth

Net sales reached $93.9 billion, up 11.2% from the prior-year quarter. Total-company comparable sales increased 9.4%, reflecting a 5.9% increase in comparable ticket and 3.3% growth in traffic. Excluding changes in gasoline prices and foreign exchange rates, comparable sales rose 6.7%, with adjusted ticket up 3.3% and traffic still up 3.3%.

The U.S. remained Costco’s strongest geographic market by sales growth. U.S. comparable sales advanced 10.7%, driven by a 7.3% increase in ticket and 3.2% traffic growth. Adjusted for gasoline and currency effects, U.S. comparable sales grew 7.2%.

Comparable sales increased 5.0% in Canada and 7.0% across other international markets. On an adjusted basis, Canada grew 4.6%, while other international sales rose 6.2%. Other international markets recorded the strongest traffic gain at 4.5%, compared with 2.5% in Canada.

Digitally enabled comparable sales climbed 19.5%, or 19.8% excluding foreign-exchange effects. Traffic to Costco’s e-commerce site and app increased 30%. Pharmacy, home furnishings, small electrics, hardware, housewares and domestics were the leading digital growth categories.

Costco also expanded third-party same-day delivery channels in the U.S. and introduced additional personalization for email communications and online product placement.

Membership base expands

Paid memberships increased 3.8% to 84.1 million, while total cardholders rose 3.6% to 150.4 million. Executive memberships reached 42.3 million and accounted for 75.6% of sales.

Membership income grew 7.3%, or 7.7% excluding foreign-exchange effects. Costco’s worldwide membership renewal rate was 89.8%, while the combined U.S. and Canada renewal rate stood at 92.3%.

Margins and operating costs

Gross margin was 11.02%, down 11 basis points from the fourth quarter of fiscal 2025. Excluding the effect of gasoline-price changes, gross margin was 20 basis points favorable. Core gross margin was 32 basis points lower on a reported basis and nine basis points lower excluding gasoline, although core-on-core sales margin was 18 basis points favorable after excluding the net effect of the tariff refunds.

Other businesses contributed a 23-basis-point reported benefit to gross margin, or 32 basis points excluding gasoline. LIFO reduced margin by 11 basis points, while other items, including the tariff-refund benefit net of partial reinvestment, added nine basis points.

Selling, general and administrative expenses represented 8.94% of sales. The ratio was 27 basis points favorable compared with the prior-year quarter, though the benefit narrowed to two basis points when excluding gasoline effects.

Warehouse expansion continues

Costco ended fiscal 2026 with 939 warehouses, up from 914 at the end of fiscal 2025. It opened 11 locations during the fourth quarter, including warehouses in Mansfield, Texas, and Stone Mountain, Georgia.

The company estimates that its network will reach 967 warehouses in fiscal 2027, comprising 665 in the U.S., 120 in Canada and 182 in other international markets. That plan implies 28 additional locations from the fiscal 2026 year-end total.

Costco also highlighted price reductions on selected Kirkland Signature products and introduced new items, including ultra-filtered lactose-free milk, one-ounce silver bars, pretzel sandwiches and Japanese matcha green tea powder.

The company cautioned that forward-looking plans remain subject to economic conditions, currency movements, inflation or deflation, competition, regulation, consumer spending, labor and energy costs, real-estate and capital-spending conditions, vendor actions, cybersecurity issues and geopolitical developments, including tariffs and global conflicts.