Costco Wholesale (COST) investor relations material

Executive summary

• Net sales rose 11.6% year-over-year to $69.15 billion in Q3 FY26, with comparable sales up 9.8% (6.6% ex-gas and FX) and digitally-enabled sales up 21.5%; membership fee income increased 10.7% to $1.373 billion, supported by executive membership growth and a fee increase.

• Net income for the quarter was $2.192 billion ($4.93 per diluted share), up 15% year-over-year, with diluted EPS up from $4.28 a year ago.

• Record-breaking gas volumes and high consumer price sensitivity drove new member engagement, while digital traffic surged 37%.

• Strategic focus on value, price leadership, and digital innovation, including AI-driven personalization and rapid expansion of same-day delivery.

• Warehouse count reached 931 globally, with new openings in the U.S. and internationally, and continued expansion planned.

Financial highlights

• Net income: $2.192 billion, up from $1.903 billion year-over-year; diluted EPS: $4.93, up 15.2%.

• Net sales: $69.15 billion, up 11.6% from $61.96 billion.

• Comparable sales: +9.8% overall, +6.6% ex-gas and FX; digitally enabled comp sales up 21.5%.

• Gross margin: 11.04%, down 21 bps year-over-year; ex-gas inflation, up 1 bp.

• SG&A rate: 8.96%, improved by 20 bps year-over-year.

Outlook and guidance

• Expecting 26 net new warehouse openings in FY26, with a target of 30+ per year in coming years.

• Continued investment in digital, technology, and operational efficiency to drive growth.

• No formal guidance provided, but management expects continued market share gains and stable comp trends in the 6%-7% range ex-gas.

• Forward-looking statements highlight risks from economic conditions, FX, inflation, competition, and regulatory changes.