Costco Wholesale (NASDAQ:COST) Issues Earnings Results

Costco Wholesale (NASDAQ:COST) issued its earnings results on Thursday. The retailer reported $4.58 earnings per share for the quarter, beating analysts’ consensus estimates of $4.51 by $0.07, FiscalAI reports. Costco Wholesale had a net margin of 2.96% and a return on equity of 29.35%. The firm had revenue of $69.60 billion for the quarter, compared to analyst estimates of $68.96 billion.

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 Trading Down 2.4%

COST stock traded down $24.17 during midday trading on Thursday, hitting $982.57. The stock had a trading volume of 2,764,296 shares, compared to its average volume of 2,461,531. The company has a current ratio of 1.04, a quick ratio of 0.53 and a debt-to-equity ratio of 0.19. The firm has a market cap of $436.13 billion, a P/E ratio of 52.63, a price-to-earnings-growth ratio of 4.83 and a beta of 1.01. The business has a fifty day moving average price of $956.95 and a two-hundred day moving average price of $935.59. Costco Wholesale has a 1-year low of $844.06 and a 1-year high of $1,067.08.

Costco Wholesale Announces Dividend

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. The ex-dividend date was Friday, January 30th. This represents a $5.20 annualized dividend and a yield of 0.5%. Costco Wholesale’s payout ratio is presently 27.85%.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Comparable-sales strength and membership fee growth supported the quarter, with management pointing to resilient demand (including international strength) that helped profit rise year-over-year — evidence of underlying business momentum. Costco Wholesale beats quarterly comparable sales estimates
• Positive Sentiment: Major sell-side support: BTIG reaffirmed a Buy and set a $1,115 target, signaling continued analyst conviction and potential upside vs. current levels. This provides a bullish institutional narrative for investors looking at target/valuation gaps. BTIG buy rating / Benzinga
• Positive Sentiment: Technical tailwind: MarketWatch flagged a recent “golden cross” on COST’s chart (50-day moving average crossing above the 200-day), which can attract momentum-focused buyers ahead of/after earnings. Costco golden cross / MarketWatch
• Neutral Sentiment: Competitive context: coverage of peers (e.g., BJ’s, Target) highlights industry dynamics and relative valuation differences; useful for positioning but not an immediate catalyst for COST. BJ’s Wholesale Club analysis / MarketBeat
• Negative Sentiment: Despite year-over-year gains, reported Q2 revenue and EPS missed some Street estimates (Quiver/aggregated data showed revenue ~$69.6B vs. ~$70.6B est; EPS slightly below), which is the primary near-term reason investors are trimming exposure — misses tend to drive immediate selling even when underlying trends are healthy. Quiver: Q2 results and misses
• Negative Sentiment: Insider selling activity (multiple executive sales reported) and large institutional repositioning noted in filings can be read negatively by some market participants, adding selling pressure even if sales are routine. Quiver: insider & institutional activity
• Negative Sentiment: Market reaction: reports note shares slipped in after‑hours/early trading following the print — consistent with the combination of EPS/revenue misses and some profit-taking after a strong YTD run. TipRanks: after-hours reaction

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, EVP Russell D. Miller sold 1,500 shares of the stock in a transaction that occurred on Friday, January 9th. The stock was sold at an average price of $916.32, for a total transaction of $1,374,480.00. Following the transaction, the executive vice president directly owned 8,240 shares in the company, valued at approximately $7,550,476.80. This represents a 15.40% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Teresa A. Jones sold 850 shares of the firm’s stock in a transaction that occurred on Wednesday, January 21st. The stock was sold at an average price of $986.26, for a total transaction of $838,321.00. Following the sale, the executive vice president directly owned 4,228 shares of the company’s stock, valued at approximately $4,169,907.28. This trade represents a 16.74% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 6,915 shares of company stock worth $6,317,097. Corporate insiders own 0.10% of the company’s stock.

Hedge Funds Weigh In On Costco Wholesale

A number of large investors have recently modified their holdings of the company. Mcguire Capital Advisors Inc. purchased a new stake in shares of Costco Wholesale during the 4th quarter valued at $28,000. T. Rowe Price Investment Management Inc. purchased a new position in shares of Costco Wholesale in the 4th quarter worth about $1,510,000. Rare Wolf Capital LLC bought a new position in Costco Wholesale during the fourth quarter valued at about $270,000. Strive Financial Group LLC purchased a new stake in Costco Wholesale during the fourth quarter worth about $1,814,000. Finally, First Commonwealth Financial Corp PA raised its position in Costco Wholesale by 3.5% in the fourth quarter. First Commonwealth Financial Corp PA now owns 1,209 shares of the retailer’s stock worth $1,043,000 after acquiring an additional 41 shares during the period. 68.48% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

COST has been the subject of a number of recent research reports. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $1,155.00 target price on shares of Costco Wholesale in a report on Monday, February 9th. Robert W. Baird set a $1,100.00 price target on Costco Wholesale in a report on Thursday, February 5th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Costco Wholesale in a report on Monday, December 29th. BMO Capital Markets reiterated an “outperform” rating on shares of Costco Wholesale in a research report on Friday, December 12th. Finally, UBS Group reissued a “buy” rating on shares of Costco Wholesale in a report on Friday, December 12th. Twenty-two investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $1,016.18.

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.