COSTCO WHOLESALE CORP /NEW (COST): Results of Operations and Financial Condition
COSTCO WHOLESALE CORP /NEW (COST) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Press Release COSTCO WHOLESALE CORPORATION REPORTS FOURTH QUARTER AND FISCAL YEAR 2026 OPERATING RESULTS ISSAQUAH, Wash., September 24, 2026 - Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the 16-wee
How this was made
The 30-second read
Why it matters
The earnings beat may drive short‑term buying pressure, while the lack of forward guidance leaves longer‑term direction uncertain.
Market read
Costco's strong earnings could lift consumer discretionary sentiment and influence peer valuations.
What to watch
Higher operating costs and potential margin pressure from wage inflation could limit upside.
Costco reported fourth-quarter net sales of $93.9 billion, up 11.2 percent, and fiscal-year net sales of $297.2 billion, up 10.1 percent.
Fourth-quarter net sales increased 11.2 percent, Total Company comparable sales increased 9.4 percent, and fourth-quarter net income increased to $2.998 billion from $2.610 billion. Fiscal-year net cash provided by operating activities was $15,825 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, 16 weeks ended August 30, 2026GAAP | $ 93,873 (dollars in millions) | – | 11.2 percent |
| Membership fees, 16 weeks ended August 30, 2026GAAP | 1,850 (dollars in millions) | – | – |
| Total revenue, 16 weeks ended August 30, 2026GAAP | 95,723 (dollars in millions) | – | – |
| Merchandise costs, 16 weeks ended August 30, 2026GAAP | 83,531 (dollars in millions) | – | – |
| Selling, general and administrative, 16 weeks ended August 30, 2026GAAP | 8,391 (dollars in millions) | – | – |
| Operating income, 16 weeks ended August 30, 2026GAAP | 3,801 (dollars in millions) | – | – |
| Interest expense, 16 weeks ended August 30, 2026GAAP | (45) (dollars in millions) | – | – |
| Interest income and other, net, 16 weeks ended August 30, 2026GAAP | 253 (dollars in millions) | – | – |
| Income before income taxes, 16 weeks ended August 30, 2026GAAP | 4,009 (dollars in millions) | – | – |
| Provision for income taxes, 16 weeks ended August 30, 2026GAAP | 1,011 (dollars in millions) | – | – |
| Net income, 16 weeks ended August 30, 2026GAAP | $ 2,998 (dollars in millions) | – | – |
| Basic net income per common share, 16 weeks ended August 30, 2026GAAP | $ 6.75 | – | – |
| Diluted net income per common share, 16 weeks ended August 30, 2026GAAP | $ 6.75 | – | – |
| Basic shares used in calculation, 16 weeks ended August 30, 2026GAAP | 443,975 (000's) | – | – |
| Diluted shares used in calculation, 16 weeks ended August 30, 2026GAAP | 444,364 (000's) | – | – |
| Net sales, 52 weeks ended August 30, 2026GAAP | $ 297,247 (dollars in millions) | – | 10.1 percent |
| Membership fees, 52 weeks ended August 30, 2026GAAP | 5,907 (dollars in millions) | – | – |
| Total revenue, 52 weeks ended August 30, 2026GAAP | 303,154 (dollars in millions) | – | – |
| Merchandise costs, 52 weeks ended August 30, 2026GAAP | 264,279 (dollars in millions) | – | – |
| Selling, general and administrative, 52 weeks ended August 30, 2026GAAP | 27,190 (dollars in millions) | – | – |
| Operating income, 52 weeks ended August 30, 2026GAAP | 11,685 (dollars in millions) | – | – |
| Interest expense, 52 weeks ended August 30, 2026GAAP | (145) (dollars in millions) | – | – |
| Interest income and other, net, 52 weeks ended August 30, 2026GAAP | 711 (dollars in millions) | – | – |
| Income before income taxes, 52 weeks ended August 30, 2026GAAP | 12,251 (dollars in millions) | – | – |
| Provision for income taxes, 52 weeks ended August 30, 2026GAAP | 3,025 (dollars in millions) | – | – |
| Net income, 52 weeks ended August 30, 2026GAAP | $ 9,226 (dollars in millions) | – | – |
| Basic net income per common share, 52 weeks ended August 30, 2026GAAP | $ 20.78 | – | – |
| Diluted net income per common share, 52 weeks ended August 30, 2026GAAP | $ 20.76 | – | – |
| Basic shares used in calculation, 52 weeks ended August 30, 2026GAAP | 443,953 (000's) | – | – |
| Diluted shares used in calculation, 52 weeks ended August 30, 2026GAAP | 444,427 (000's) | – | – |
| Total Company comparable sales, 16 weeksother | 9.4% | – | – |
| Total Company comparable sales excluding impacts from changes in gasoline prices and foreign exchange, 16 weeksother | 6.7% | – | – |
| Total Company comparable sales, 52 weeksother | 8.4% | – | – |
| Total Company comparable sales excluding impacts from changes in gasoline prices and foreign exchange, 52 weeksother | 6.6% | – | – |
| Digitally-Enabled comparable sales, 16 weeksother | 19.5% | – | – |
| Digitally-Enabled comparable sales excluding impacts from changes in gasoline prices and foreign exchange, 16 weeksother | 19.8% | – | – |
| Digitally-Enabled comparable sales, 52 weeksother | 20.9% | – | – |
| Digitally-Enabled comparable sales excluding impacts from changes in gasoline prices and foreign exchange, 52 weeksother | 20.7% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| U.S. comparable sales, 16 weeksComparable sales; adjusted comparable sales excluding impacts from changes in gasoline prices and foreign exchange were 7.2%. | 10.7% | – | – |
| Canada comparable sales, 16 weeksComparable sales; adjusted comparable sales excluding impacts from changes in gasoline prices and foreign exchange were 4.6%. | 5.0% | – | – |
| Other International comparable sales, 16 weeksComparable sales; adjusted comparable sales excluding impacts from changes in gasoline prices and foreign exchange were 6.2%. | 7.0% | – | – |
| U.S. comparable sales, 52 weeksComparable sales; adjusted comparable sales excluding impacts from changes in gasoline prices and foreign exchange were 6.6%. | 8.2% | – | – |
| Canada comparable sales, 52 weeksComparable sales; adjusted comparable sales excluding impacts from changes in gasoline prices and foreign exchange were 6.7%. | 7.8% | – | – |
| Other International comparable sales, 52 weeksComparable sales; adjusted comparable sales excluding impacts from changes in gasoline prices and foreign exchange were 6.5%. | 9.8% | – | – |
Capital returns
- Repurchases of common stock: (848) (amounts in millions) for the 52 weeks ended August 30, 2026, compared with (903) (amounts in millions) for the 52 weeks ended August 31, 2025.
- Cash dividend payments: (2,458) (amounts in millions) for the 52 weeks ended August 30, 2026, compared with (2,183) (amounts in millions) for the 52 weeks ended August 31, 2025.
What drove it
- Fourth-quarter net sales increased 11.2 percent to $93.9 billion.
- Fourth-quarter Total Company comparable sales were 9.4%, or 6.7% excluding the impacts from changes in gasoline prices and foreign exchange.
- Digitally-Enabled comparable sales were 19.5% for the fourth quarter and 20.9% for the fiscal year.
- Membership fees were 1,850 (dollars in millions) in the fourth quarter and 5,907 (dollars in millions) for the fiscal year.
- The fourth quarter was positively impacted by a non-recurring benefit of $0.15 per diluted share from IEEPA tariff refunds received in the quarter, less partial reinvestment of those refunds in increased member values.
Concerns
- Fourth-quarter diluted net income included a non-recurring benefit of $0.15 per diluted share from IEEPA tariff refunds, less partial reinvestment of those refunds in increased member values.
- The company identifies risks including exchange rates, inflation or deflation, competition and regulation, consumer and small business spending patterns and debt levels, employee costs, energy and commodity costs, tariffs, and global conflicts.
- Current portion of long-term debt was 2,248 (amounts in millions) at August 30, 2026, compared with 75 (amounts in millions) at August 31, 2025.
What to watch
- Comparable sales excluding impacts from changes in gasoline prices and foreign exchange, which were 6.7% for Total Company in the fourth quarter and 6.6% for the fiscal year.
- Digitally-Enabled comparable sales, which were 19.5% in the fourth quarter and 20.9% in the fiscal year.
- Membership fees, reported at 1,850 (dollars in millions) in the fourth quarter and 5,907 (dollars in millions) in the fiscal year.
- Additions to property and equipment, reported at (6,435) (amounts in millions) for the fiscal year.
- The impact of tariffs and any subsequent member-value investments.
Balance sheet and cash flow
- Cash and cash equivalents: $ 20,207 (amounts in millions) at August 30, 2026, compared with $ 14,161 (amounts in millions) at August 31, 2025.
- Short-term investments: 1,094 (amounts in millions) at August 30, 2026, compared with 1,123 (amounts in millions) at August 31, 2025.
- Merchandise inventories: 19,324 (amounts in millions) at August 30, 2026, compared with 18,116 (amounts in millions) at August 31, 2025.
- Total current assets: 46,582 (amounts in millions) at August 30, 2026, compared with 38,380 (amounts in millions) at August 31, 2025.
- Property and equipment, net: 35,633 (amounts in millions) at August 30, 2026, compared with 31,909 (amounts in millions) at August 31, 2025.
- Total assets: $ 89,045 (amounts in millions) at August 30, 2026, compared with $ 77,099 (amounts in millions) at August 31, 2025.
- Current portion of long-term debt: 2,248 (amounts in millions) at August 30, 2026, compared with 75 (amounts in millions) at August 31, 2025.
- Long-term debt, excluding current portion: 3,914 (amounts in millions) at August 30, 2026, compared with 5,713 (amounts in millions) at August 31, 2025.
- Total current liabilities: 43,952 (amounts in millions) at August 30, 2026, compared with 37,108 (amounts in millions) at August 31, 2025.
- Total liabilities: 53,242 (amounts in millions) at August 30, 2026, compared with 47,935 (amounts in millions) at August 31, 2025.
- Total equity: 35,803 (amounts in millions) at August 30, 2026, compared with 29,164 (amounts in millions) at August 31, 2025.
- Net cash provided by operating activities: 15,825 (amounts in millions) for the 52 weeks ended August 30, 2026, compared with 13,335 (amounts in millions) for the 52 weeks ended August 31, 2025.
- Depreciation and amortization: 2,674 (amounts in millions) for the 52 weeks ended August 30, 2026, compared with 2,426 (amounts in millions) for the 52 weeks ended August 31, 2025.
- Changes in working capital: 2,328 (amounts in millions) for the 52 weeks ended August 30, 2026, compared with 1,764 (amounts in millions) for the 52 weeks ended August 31, 2025.
- Additions to property and equipment: (6,435) (amounts in millions) for the 52 weeks ended August 30, 2026, compared with (5,498) (amounts in millions) for the 52 weeks ended August 31, 2025.
- Net cash used in investing activities: (6,386) (amounts in millions) for the 52 weeks ended August 30, 2026, compared with (5,311) (amounts in millions) for the 52 weeks ended August 31, 2025.
- Net cash used in financing activities: (3,355) (amounts in millions) for the 52 weeks ended August 30, 2026, compared with (3,775) (amounts in millions) for the 52 weeks ended August 31, 2025.
- Net change in cash and cash equivalents: 6,046 (amounts in millions) for the 52 weeks ended August 30, 2026, compared with 4,255 (amounts in millions) for the 52 weeks ended August 31, 2025.
Analysis
Costco closed fiscal 2026 with broad top-line momentum. Net sales in the 16-week fourth quarter increased 11.2 percent to $93.9 billion, while total revenue was 95,723 (dollars in millions), compared with 86,156 (dollars in millions) in the prior-year period. Total Company comparable sales were 9.4%, and were 6.7% excluding changes in gasoline prices and foreign exchange. The fiscal-year net-sales increase was 10.1 percent, to $297.2 billion.
Comparable-sales performance was positive across the reported geographies in the fourth quarter: U.S. was 10.7%, Canada was 5.0%, and Other International was 7.0%. On the adjusted basis excluding gasoline and foreign exchange, the respective results were 7.2%, 4.6%, and 6.2%. Digitally-Enabled comparable sales were 19.5% in the fourth quarter and 20.9% for the fiscal year, the strongest reported comparable-sales figures in the release.
Profitability increased alongside revenue. Fourth-quarter operating income was 3,801 (dollars in millions), compared with 3,341 (dollars in millions), while net income was $ 2,998 (dollars in millions), compared with $ 2,610 (dollars in millions). Diluted earnings per share were $ 6.75 versus $ 5.87. The company stated that fourth-quarter results benefited by $0.15 per diluted share from IEEPA tariff refunds, less partial reinvestment of those refunds in increased member values. Fiscal-year operating income was 11,685 (dollars in millions), and fiscal-year diluted earnings per share were $ 20.76.
Cash generation increased during the year. Net cash provided by operating activities was 15,825 (amounts in millions), compared with 13,335 (amounts in millions), while additions to property and equipment were (6,435) (amounts in millions). The company repurchased 848 (amounts in millions) of common stock and made cash dividend payments of 2,458 (amounts in millions). Cash and cash equivalents ended the year at $ 20,207 (amounts in millions), compared with $ 14,161 (amounts in millions).
The release provided no forward financial guidance. Key reported items to follow are adjusted comparable sales, digitally-enabled sales, membership-fee growth, capital spending, and the effect of tariffs and related member-value investments. Costco operated 939 warehouses at the reporting date.
Not in the filing
stated, not guessed- Forward guidance for revenue, gross margin, operating expenses, tax rate, earnings, capital expenditures, warehouse openings, or other metrics was not provided.
- Prior-quarter comparisons were not provided for the reported income-statement metrics.
- Gross margin was not reported.
- Free cash flow was not reported.
- Segment revenue was not reported.
- Executive commentary and named executive quotes were not provided.
- A non-GAAP earnings, operating-income, net-income, or EPS measure was not provided.
- Percentage changes for total revenue, membership fees, operating income, net income, and earnings per share were not printed on their respective rows.
- Cash-flow statement components not separately captured in the structured balance-sheet and cash-flow list include non-cash lease expense, stock-based compensation, other non-cash operating activities, short-term borrowing activity, long-term-debt repayment and issuance, tax withholdings on stock-based awards, financing lease payments and other financing activities, exchange-rate changes on cash, and beginning cash.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Costco filed a Form 8‑K reporting its FY 2026 results, the first public release of these numbers.
Ticker impact
Costco reported Q4 and FY 2026 results with 11.2% sales growth and EPS beat, a fresh primary disclosure.
Potential short‑term rally of 2‑4% as investors digest the beat.
Revenue and EPS both exceeded prior year; guidance not provided but beat implies continued momentum.
Market effects
Retail sector may see broader optimism as Costco's performance highlights consumer spending strength.
U.S. consumer discretionary stocks could benefit from the positive earnings surprise.
International peers may see modest gains as Costco's global sales growth signals resilient demand.
Counterpoint
If the market has already priced in the beat, a pull‑back could occur on profit‑taking.
Key entities
- CompanyCostco Wholesale Corp.
US‑listed retailer (NASDAQ:COST) reporting FY 2026 earnings.
