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. However, the company's investment thesis is complic...
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 10/6/2026, 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 Q4 earnings beat highlights membership strength, digital growth and warehouse expansion as investors assess growth amid valuation and margin concerns.
Stock splits don't change fundamentals or company value; they do a lot for investors, ultimately driving equity gains. At face value, a stock split signals underlying company strength: the stock is trending higher at “unreasonably” high price levels and is expected to continue rising, as only fundamentally strong companies can.
Costco just posted its fifth consecutive earnings beat and carries a renewal rate that almost no retailer can match, yet the stock sits well off its highs. Our model reveals whether that gap is an opportunity or a warning.
Walmart (WMT -1.77%) and Costco (COST +0.18%) operate similar business models.
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 |
|---|---|---|---|---|---|---|---|
| $923.52 | $409.56B | 50.72 | 8.17% | 2.94% | 30.69% | 0.53% | |
| $105.07 | $837.51B | 38.49 | 4.73% | 3.04% | 21.64% | — | |
| $152.99 | $69.49B | 18.82 | -1.68% | 4.08% | 26.66% | — | |
| $93.82 | $11.98B | 21.42 | 4.66% | 2.61% | 26.19% | — | |
| $58.78 | $36.24B | 38.17 | 0.35% | 0.73% | 17.15% | — | |
| $11.51 | $5.64B | 28.78 | 3.46% | 0.08% | 2.91% | — |
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 for fiscal year 2025. This represents a 1449% increase from $19.57B in 1996.
Costco Wholesale Corporation (COST) grew revenue by 8.2% over the past year. This is steady growth.
Yes, Costco Wholesale Corporation (COST) is profitable, generating $9.23B in net income for fiscal year 2025 (2.9% net margin).
Yes, Costco Wholesale Corporation (COST) pays a dividend with a yield of 0.53%. This makes it attractive for income-focused investors.
Costco Wholesale Corporation (COST) has a return on equity (ROE) of 30.7%. This is excellent, indicating efficient use of shareholder capital.
Costco Wholesale Corporation (COST) generated $9.39B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
