Costco Wholesale (COST) Q3 2026 earnings summary

Executive summary

• Net sales rose 11.6%–12% year-over-year to $69.15–$69.2 billion, driven by comparable sales growth, new warehouse openings, and strong digital performance.

• Net income increased 15%–15.2% to $2.19–$2.192 billion ($4.93 per diluted share), with membership fee income up 10.7%–11% to $1.37–$1.373 billion.

• Digitally-enabled comparable sales surged 21%–21.5%, with ecommerce site and app traffic up 37%.

• Membership renewal rates reached 92.2% in the U.S./Canada and 89.7% worldwide, with executive memberships at 41.2 million.

• Strategic focus on value, price leadership, digital innovation, and rapid expansion of same-day delivery and new warehouses.

Financial highlights

• Net income: $2.19–$2.192 billion, up from $1.90–$1.903 billion year-over-year.

• Net sales: $69.15–$69.2 billion, up 11.6%–12% from $61.96–$63.2 billion.

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

• SG&A as % of net sales: 8.96%, improved by 20 bps year-over-year.

• Cash and cash equivalents at quarter-end: $18.95 billion, up from $14.16 billion at the start of the year.

Outlook and guidance

• Plans for 13–26 net new warehouse openings in FY26, with a target of 30+ per year in coming years.

• Capital expenditures for FY26 expected to be approximately $6.5 billion, focused on new warehouses, remodels, and digital expansion.

• Management expects continued market share gains, stable comp trends in the 6%–7% range ex-gas, and sufficient liquidity.

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