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FMP

Costco Wholesale Corporation's Impressive Fiscal 2026 Q1 Financial Results

  • Costco (NASDAQ:COST) surpassed earnings and revenue expectations for Q1 fiscal 2026, with earnings per share of $4.50 and revenue of $67.31 billion.
  • The company reported an 8.2% year-over-year increase in net sales and a 6.4% rise in total comparable sales, driven by strong consumer demand.
  • Membership fees reached approximately $1.33 billion, up from $1.17 billion the previous year, contributing significantly to Costco's success.

Costco Wholesale Corporation, listed as NASDAQ:COST, is a leading global retailer known for its membership-only warehouse clubs. The company operates 923 warehouses worldwide, with 633 in the U.S. Costco offers a wide range of products, including groceries, electronics, and household essentials. It competes with other retail giants like Walmart and Target.

On December 11, 2025, Costco reported impressive financial results for the first quarter of fiscal 2026. The company achieved earnings per share of $4.50, surpassing the estimated $4.26. Revenue also exceeded expectations, reaching $67.31 billion compared to the anticipated $67.12 billion. This strong performance reflects Costco's ability to attract new members and increase sales.

Costco's net sales for the quarter increased by 8.2% year-over-year, with total comparable sales rising by 6.4%. The U.S. saw a 5.9% increase, Canada experienced a 6.5% rise, and other international markets surged by 8.8%. This growth is attributed to strong consumer demand across various income groups, as highlighted by CNBC.

Membership fees also contributed to Costco's success, reaching approximately $1.33 billion, up from $1.17 billion in the same quarter last year. The increase in membership fees, which began in September 2024, has attracted new sign-ups and renewals, particularly among younger customers. This has bolstered investor confidence, leading to after-hours movement in Costco's stock.

Costco's financial metrics indicate a strong market position. The company has a price-to-earnings (P/E) ratio of 47.3, reflecting high expectations for future growth. Its price-to-sales ratio is 1.4, and the enterprise value to sales ratio is 1.35. With a low debt-to-equity ratio of 0.08 and a current ratio of 1.04, Costco maintains a stable liquidity position.