The Biggest Players in a $500 Billion Market Are Exiting. Here’s Why Costco Just Entered.

Costco (COST) stock is up 9.2% YTD, despite a recent 14.3% drop from its May high. Strong membership renewal rates (92.2% in U.S./Canada) and Q3 revenue growth (11.6% YOY) support investor confidence. Analysts expect 13.5% EPS growth in 2026, with a mean price target of $1,101.56 (17.2% upside).

Costco (COST) is partnering with SCAN Health Plan to launch co-branded Medicare Advantage plans in three states, pending federal approval. The plans will be sold in Costco warehouses, online, and through agents, with no membership requirement. The move aims to integrate health services with Costco's existing offerings. Details on premiums and benefits are not yet available.

Costco reported July same-store sales up 9.8% and operating margin at 4%. Net income rose 7.72% to $2.19B and operating cash flow increased 44.89% to $11.13B. The company opened its first standalone fuel station in Mission Viejo, with fuel about 10% of net sales. Analysts expect Aug 2026 EPS of $6.51 and Bernstein raised its COST target to $1,059.53.

The U.S. Supreme Court invalidated Trump IEEPA tariffs, leaving the administration to refund about $166 billion. By Aug. 4, refunds exceeded $100 billion. Apple received $2.19 billion, Amazon $600 million, and others including Walmart ($2.4B), Ford ($1.3B), GM ($500M), and Costco (~$2B) are expected to receive large checks. New Section 301 tariffs may affect prices.

Costco Wholesale (COST) reported that its July same-store, or comparable, sales increased 8.9% versus the same month a year earlier, according to the company. The update provides a near-term read on demand for the retailer’s existing locations.

CBP reported about $128B entered its tariff-refund pipeline after the Supreme Court voided Trump’s IEEPA “Liberation Day” tariffs in Feb 2026, with about $100B paid out. Public filings quantify windfalls: Apple $2.2B quarterly, Amazon $600M, Nike about $300M. Under customs law, only the Importer of Record can claim refunds, so consumers generally cannot.