Costco Wholesale Corp. (NASDAQ:COST) shares traded more than 1% lower intra-day on Friday, even after the retailer delivered stronger-than-expected earnings and revenue for its fiscal first quarter of 2026.

Net income rose to $2.0 billion, or $4.50 per diluted share, beating Wall Street expectations of $4.28 per share. Total revenue increased 8.3% year-over-year to $67.31 billion for the quarter ended November 23, surpassing analyst forecasts of $67.08 billion.

Net sales accounted for $65.98 billion, while membership fee revenue—Costco's high-margin segment—climbed 14% year-over-year to $1.33 billion.

Comparable sales growth, excluding fuel and foreign exchange effects, was 6.4% across the company. U.S. comparable sales rose 5.9%, while Canada and other international markets posted adjusted comparable sales growth of 9.0% and 6.8%, respectively.

Operating income increased to $2.46 billion from $2.20 billion a year earlier, supported by strong private-label performance and disciplined inventory management.