Costco Wholesale (COST) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 rose 9.1% year-over-year to $68.24 billion, with comparable sales up 7.4% (6.7% adjusted for gas and FX) and digitally enabled sales up 22.6%.

• Net income increased nearly 14% to $2.04 billion ($4.58 per diluted share), with diluted EPS up from $4.02 last year.

• Membership fee income grew 13.6% to $1.36 billion, with paid executive memberships up 9.5% and total paid members up 4.8%.

• U.S. and Canada renewal rate was 92.1%; worldwide renewal rate was 89.7%.

• Four new warehouses opened in Q2, with global count reaching 924; 27 net new warehouses added since prior year.

Financial highlights

• Gross margin improved by 17 bps year-over-year to 11.02%; core-on-core margins rose 22 bps.

• SG&A rate increased by 13 bps to 9.19%, impacted by higher general liability reserves.

• Operating income for Q2 was $2.61 billion, up from $2.32 billion last year.

• Interest expense was $33 million (down from $36 million), and interest income was $140 million (up from $109 million).

• Cash and cash equivalents at quarter-end were $17.38 billion, up from $14.16 billion at fiscal year-end.

Outlook and guidance

• Expecting 28 net new warehouse openings in FY26, targeting 30+ per year in future years.

• CapEx for FY26 expected at $6.5 billion, focused on new warehouses, remodels, depot expansion, and digital enhancements.

• Management expects cash flow and liquidity to be sufficient to meet capital and operational needs.

• Monitoring Middle East instability for potential impacts on fuel costs and shipping.

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