Costco exhibits accelerating revenue growth, reaching 11.1% in 2026Q4, underpinned by robust consumer demand and a strengthening financial position with cash of $20.2B and a debt-to-equity ratio of just 0.13.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has accelerated to 11.1% in 2026Q4, but the reported gross margin of 27.7% represents a significant deviation from the stable 12.5-13.0% baseline, masking the sustainability of core operational profitability.
In Q1 of fiscal year 2026, Costco's revenue increased by 8.2%, with comparable sales up 6.4% and digital sales growing by 20.5%.
Costco is expanding globally, opening new warehouses and exploring business centers to drive future revenue growth.
Costco's value-focused model and Kirkland Signature brand appeal to a loyal customer base, helping it navigate economic challenges.
Costco's stock is trading at a premium valuation, with a high price-to-earnings (P/E) ratio, leaving little room for error.
Rising costs related to labor, supply chains, and competition could pressure Costco's profit margins.
Costco's stock can be sensitive to broader market sentiment and macroeconomic shifts.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Sep 24, 2026 | $6.75+3.2% vs $6.54 | $93.9B-1.2% vs $95.0B |
Q2 2026 May 28, 2026 | $4.93-1.4% vs $5.00 | $70.5B+1.0% vs $69.8B |
Q2 2026 Mar 5, 2026 | $4.58+0.7% vs $4.55 | $69.6B+0.4% vs $69.3B |
Q4 2025 Dec 11, 2025 | $4.50+5.4% vs $4.27 | $67.3B+0.2% vs $67.1B |
Costco's October sales surge 12.6%, fueled by strong comparable sales and digital growth, but its premium valuation and earnings revisions raise concerns.
Although Wall Street enjoyed more than nine months of a steady Federal Reserve, with the target rate capped at 3.75% from December 11, 2025 through September 16, 2026, that calm ended when policymakers lifted the ceiling to 4.
Six straight earnings beats have pushed Costco shares up 20% this year, yet a 49x trailing P/E leaves little room for error. One metric could decide whether the rally keeps running or finally stalls.
Mapping the Market: Costco has momentum to rally on
Benchmark COST against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Costco Wholesale Corporation (COST)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $1053.56 | $467.23B | 50.74 | 10.14% | 3.04% | 28.4% | 0.53% | |
| $125.52 | $1T | 45.98 | 4.73% | 3.04% | 21.64% | 0.75% | |
| $158.41 | $71.95B | 19.48 | -1.68% | 4.08% | 26.66% | 2.84% | |
| $109.40 | $13.97B | 24.98 | 4.66% | 2.61% | 26.19% | — | |
| $67.70 | $41.74B | 43.96 | 0.35% | 0.73% | 17.15% | 2% | |
| $12.79 | $6.26B | 31.98 | 3.46% | -0.06% | -2.78% | 4.61% |
Costco Wholesale Corporation (COST) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Costco Wholesale Corporation (COST) SEC filings — annual & quarterly reports (10-K, 10-Q)
Sep 24, 2026·SEC
May 28, 2026·SEC
Apr 15, 2026·SEC
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Costco Wholesale Corporation (COST) stock FAQ — growth, dividends, profitability & financials explained
Costco Wholesale Corporation (COST) reported $303.15B in revenue in fiscal year 2026, which is also its trailing twelve months. That is 1286% more than the $21.87B of fiscal year 1997.
Costco Wholesale Corporation (COST) grew revenue by 10.1% in fiscal year 2026, compared with the prior fiscal year.
Yes. Costco Wholesale Corporation (COST) earned $9.23B in net income over the trailing twelve months (a 3.0% net margin).
Yes. Costco Wholesale Corporation (COST) pays a dividend that yields 0.53% at the current price, a small yield.
Costco Wholesale Corporation (COST) had a return on equity (ROE) of 28.4% in fiscal year 2026. That is well above the market's typical 10-15%.
Costco Wholesale Corporation (COST) generated $9.39B in free cash flow over the trailing twelve months.
