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.
Costco Wholesale Corporation (COST) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Aug'25 | Sep'24 | Sep'23 | Aug'22 | Aug'21 | Aug'20 | Aug'19 | Aug'18 | Aug'17 | Aug'16 | Aug'15 | Aug'14 | Aug'13 | Aug'12 | Aug'11 | Aug'10 | Aug'09 | Aug'08 | Aug'07 | Aug'06 | Aug'05 | Aug'04 | Aug'03 | Aug'02 | Aug'01 | Aug'00 | Aug'99 | Aug'98 | Aug'97 | Aug'96 |
|---|
| Sales/Revenue | 303.15B | 275.24B | 254.45B | 242.29B | 226.95B | 195.93B | 166.76B | 152.7B | 141.58B | 129.03B | 118.72B | 116.2B | 112.64B | 105.16B | 99.14B | 88.92B | 77.95B | 71.42B | 72.48B | 64.4B | 60.15B | 52.94B | 48.11B | 42.55B | 38.76B | 34.8B | 32.16B | 27.46B | 24.27B | 21.87B | 19.57B |
| Revenue Growth % | 10.14% | 8.17% | 5.02% | 6.76% | 15.83% | 17.49% | 9.21% | 7.86% | 9.73% | 8.68% | 2.17% | 3.16% | 7.12% | 6.07% | 11.5% | 14.07% | 9.13% | -1.46% | 12.55% | 7.06% | 13.63% | 10.04% | 13.07% | 9.76% | 11.4% | 8.19% | 17.15% | 13.13% | 10.95% | 11.8% | 9.27% |
| Cost of Goods Sold | 264.28B | 239.89B | 222.36B | 212.59B | 199.38B | 170.68B | 144.94B | 132.89B | 123.15B | 111.88B | 102.9B | 101.06B | 98.46B | 91.95B | 86.82B | 77.74B | 68B | 62.34B | 63.5B | 56.45B | 52.75B | 46.35B | 42.09B | 37.24B | 33.98B | 30.6B | 28.07B | 23.95B | 21.18B | 19.13B | 17.18B |
| COGS % of Revenue | - | 87.16% | 87.39% | 87.74% | 87.85% | 87.12% | 86.91% | 87.02% | 86.99% | 86.71% | 86.68% | 86.98% | 87.41% | 87.44% | 87.58% | 87.43% | 87.23% | 87.28% | 87.61% | 87.65% | 87.69% | 87.55% | 87.5% | 87.52% | 87.67% | 87.93% | 87.26% | 87.21% | 87.28% | 87.46% | 87.82% |
| Gross Profit | 38.88B | 35.35B | 32.09B | 29.7B | 27.57B | 25.25B | 21.82B | 19.82B | 18.42B | 17.14B | 15.82B | 15.13B | 14.18B | 13.21B | 12.31B | 11.18B | 9.95B | 9.09B | 8.98B | 7.95B | 7.41B | 6.59B | 6.01B | 5.31B | 4.78B | 4.2B | 4.1B | 3.51B | 3.09B | 2.74B | 2.38B |
| Gross Margin % | 12.82% | 12.84% | 12.61% | 12.26% | 12.15% | 12.88% | 13.09% | 12.98% | 13.01% | 13.29% | 13.32% | 13.02% | 12.59% | 12.56% | 12.42% | 12.57% | 12.77% | 12.72% | 12.39% | 12.35% | 12.31% | 12.45% | 12.5% | 12.48% | 12.33% | 12.07% | 12.74% | 12.79% | 12.72% | 12.54% | 12.18% |
| Gross Profit Growth % | - | 10.14% | 8.05% | 7.73% | 9.22% | 15.69% | 10.12% | 7.56% | 7.47% | 8.38% | 4.52% | 6.71% | 7.37% | 7.26% | 10.18% | 12.31% | 9.51% | 1.19% | 12.95% | 7.36% | 12.41% | 9.53% | 13.27% | 11.11% | 13.82% | 2.5% | 16.69% | 13.74% | 12.56% | 15.08% | 30.77% |
| Operating Expenses | 27.19B | 24.97B | 22.81B | 21.59B | 19.78B | 18.54B | 16.39B | 15.08B | 13.94B | 13.03B | 12.15B | 11.51B | 10.96B | 10.15B | 9.55B | 8.74B | 7.87B | 7.29B | 7.01B | 6.34B | 5.77B | 5.11B | 4.63B | 4.15B | 3.65B | 3.21B | 3.06B | 2.65B | 2.3B | 2.16B | 1.89B |
| OpEx % of Revenue | - | 9.07% | 8.96% | 8.91% | 8.71% | 9.46% | 9.83% | 9.88% | 9.85% | 10.1% | 10.23% | 9.91% | 9.73% | 9.66% | 9.64% | 9.83% | 10.1% | 10.21% | 9.67% | 9.85% | 9.6% | 9.66% | 9.63% | 9.76% | 9.41% | 9.22% | 9.51% | 9.65% | 9.47% | 9.88% | 9.67% |
| Selling, General & Admin | 27.19B | 24.97B | 22.81B | 21.59B | 19.78B | 18.46B | 16.33B | 14.99B | 13.88B | 12.95B | 12.07B | 11.45B | 10.9B | 10.1B | 9.52B | 8.68B | 7.84B | 7.29B | 7.01B | 6.33B | 5.77B | 5.11B | 4.63B | 4.15B | 3.65B | 3.21B | 2.8B | 2.43B | 2.1B | 1.98B | 1.73B |
| SG&A % of Revenue | - | 9.07% | 8.96% | 8.91% | 8.71% | 9.42% | 9.79% | 9.82% | 9.8% | 10.04% | 10.17% | 9.85% | 9.68% | 9.61% | 9.6% | 9.76% | 10.06% | 10.21% | 9.67% | 9.83% | 9.6% | 9.66% | 9.63% | 9.76% | 9.41% | 9.22% | 8.72% | 8.83% | 8.66% | 9.05% | 8.84% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 76M | 55M | 86M | 23M | 17M | 78M | 65M | 12M | 14M | 14M | 55M | 34M | 0 | 248K | 13.61M | 0 | 0 | 1M | 0 | 0 | 0 | 254.4M | 224.8M | 196.3M | 182.3M | 161.6M |
| Operating Income | 11.69B | 10.38B | 9.29B | 8.11B | 7.79B | 6.71B | 5.43B | 4.74B | 4.48B | 4.11B | 3.67B | 3.62B | 3.22B | 3.05B | 2.76B | 2.44B | 2.08B | 1.78B | 1.97B | 1.61B | 1.63B | 1.47B | 1.39B | 1.16B | 1.13B | 992.27M | 1.04B | 860.1M | 787.3M | 580.7M | 490.8M |
| Operating Margin % | 3.85% | 3.77% | 3.65% | 3.35% | 3.43% | 3.42% | 3.26% | 3.1% | 3.16% | 3.19% | 3.09% | 3.12% | 2.86% | 2.9% | 2.78% | 2.74% | 2.66% | 2.49% | 2.72% | 2.5% | 2.7% | 2.79% | 2.88% | 2.72% | 2.92% | 2.85% | 3.23% | 3.13% | 3.24% | 2.65% | 2.51% |
| Operating Income Growth % | - | 11.83% | 14.43% | 4.12% | 16.17% | 23.42% | 14.74% | 5.74% | 8.98% | 11.96% | 1.32% | 12.55% | 5.47% | 10.66% | 13.12% | 17.43% | 16.88% | -9.74% | 22.4% | -1.05% | 10.26% | 6.4% | 19.8% | 2.22% | 14.04% | -4.36% | 20.62% | 9.25% | 35.58% | 18.32% | 294.22% |
| EBITDA | 14.36B | 12.81B | 11.52B | 10.19B | 9.69B | 8.49B | 7.08B | 6.23B | 5.92B | 5.48B | 4.93B | 4.75B | 4.25B | 4B | 3.67B | 3.29B | 2.87B | 2.5B | 2.62B | 2.17B | 2.14B | 1.96B | 1.83B | 1.55B | 1.47B | 1.29B | 1.29B | 1.08B | 983.6M | 762.5M | 652.4M |
| EBITDA Margin % | 4.74% | 4.65% | 4.53% | 4.21% | 4.27% | 4.33% | 4.25% | 4.08% | 4.18% | 4.25% | 4.15% | 4.09% | 3.77% | 3.8% | 3.7% | 3.7% | 3.68% | 3.51% | 3.62% | 3.38% | 3.56% | 3.7% | 3.8% | 3.64% | 3.8% | 3.72% | 4.02% | 3.95% | 4.05% | 3.49% | 3.33% |
| EBITDA Growth % | 12.1% | 11.17% | 13.06% | 5.14% | 14.18% | 19.9% | 13.66% | 5.27% | 7.95% | 11.24% | 3.7% | 11.81% | 6.25% | 9.05% | 11.32% | 14.69% | 14.65% | -4.46% | 20.55% | 1.59% | 9.45% | 7.11% | 17.99% | 5.06% | 13.9% | 0.13% | 19.08% | 10.3% | 29% | 16.88% | 144.8% |
| D&A (Non-Cash Add-back) | 2.67B | 2.43B | 2.24B | 2.08B | 1.9B | 1.78B | 1.65B | 1.49B | 1.44B | 1.37B | 1.25B | 1.13B | 1.03B | 946M | 908M | 855M | 795M | 728M | 653M | 566.38M | 515.28M | 481.84M | 440.72M | 391.3M | 341.78M | 301.3M | 254.4M | 224.8M | 196.3M | 181.8M | 161.6M |
| EBIT | 11.69B | 10.97B | 9.91B | 8.65B | 8B | 6.85B | 5.53B | 4.92B | 4.6B | 4.17B | 3.75B | 3.73B | 3.31B | 3.15B | 2.86B | 2.5B | 2.17B | 1.83B | 2.11B | 1.61B | 1.63B | 1.49B | 1.39B | 1.16B | 1.13B | 992.27M | 1.04B | 860.1M | 787.3M | 580.7M | 490.8M |
| Net Interest Income | 566M | 351M | 364M | 310M | -97M | -130M | -75M | 1M | -61M | -67M | -81M | -67M | -49M | -41M | -32M | -65M | -37M | -81M | -7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 711M | 505M | 533M | 470M | 61M | 41M | 89M | 151M | 98M | 67M | 52M | 57M | 64M | 58M | 63M | 51M | 74M | 27M | 96M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 145M | 154M | 169M | 160M | 158M | 171M | 164M | 150M | 159M | 134M | 133M | 124M | 113M | 99M | 95M | 116M | 111M | 108M | 103M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 566M | 435M | 455M | 373M | 47M | -28M | -68M | 28M | -38M | -72M | -53M | -20M | -23M | -2M | 8M | -56M | -23M | -50M | 30.14M | 101.41M | 77.83M | 74.66M | 14.98M | 1.6M | 6.65M | 11.21M | 14.95M | -1.3M | -20.9M | -60.4M | -67.3M |
| Pretax Income | 12.25B | 10.82B | 9.74B | 8.49B | 7.84B | 6.68B | 5.37B | 4.76B | 4.44B | 4.04B | 3.62B | 3.6B | 3.2B | 3.05B | 2.77B | 2.38B | 2.05B | 1.73B | 2B | 1.71B | 1.75B | 1.55B | 1.4B | 1.16B | 1.14B | 1B | 1.05B | 858.8M | 766.4M | 520.3M | 423.5M |
| Pretax Margin % | 4.04% | 3.93% | 3.83% | 3.5% | 3.45% | 3.41% | 3.22% | 3.12% | 3.14% | 3.13% | 3.05% | 3.1% | 2.84% | 2.9% | 2.79% | 2.68% | 2.64% | 2.42% | 2.76% | 2.66% | 2.91% | 2.93% | 2.91% | 2.72% | 2.94% | 2.88% | 3.27% | 3.13% | 3.16% | 2.38% | 2.16% |
| Income Tax | 3.02B | 2.72B | 2.37B | 2.19B | 1.93B | 1.6B | 1.31B | 1.06B | 1.26B | 1.32B | 1.24B | 1.2B | 1.11B | 990M | 1B | 841M | 731M | 628M | 716.25M | 627.22M | 648.2M | 485.87M | 518.23M | 437.23M | 438.2M | 401.39M | 420.96M | 343.5M | 306.6M | 208.1M | 174.7M |
| Effective Tax Rate % | 24.69% | 25.13% | 24.36% | 25.86% | 24.55% | 23.97% | 24.37% | 22.27% | 28.43% | 32.81% | 34.35% | 33.16% | 34.69% | 32.45% | 36.14% | 35.29% | 35.59% | 36.36% | 35.83% | 36.68% | 37.01% | 31.37% | 37% | 37.75% | 38.5% | 40% | 40% | 40% | 40.01% | 40% | 41.25% |
| Net Income | 9.23B | 8.1B | 7.37B | 6.29B | 5.84B | 5.01B | 4B | 3.66B | 3.13B | 2.68B | 2.35B | 2.38B | 2.06B | 2.04B | 1.71B | 1.46B | 1.3B | 1.09B | 1.28B | 1.08B | 1.1B | 1.06B | 882.39M | 721M | 699.98M | 602.09M | 631.44M | 397.3M | 459.8M | 312.2M | 248.8M |
| Net Margin % | 3.04% | 2.94% | 2.9% | 2.6% | 2.57% | 2.56% | 2.4% | 2.4% | 2.21% | 2.08% | 1.98% | 2.05% | 1.83% | 1.94% | 1.72% | 1.64% | 1.67% | 1.52% | 1.77% | 1.68% | 1.83% | 2.01% | 1.83% | 1.69% | 1.81% | 1.73% | 1.96% | 1.45% | 1.89% | 1.43% | 1.27% |
| Net Income Growth % | 13.92% | 9.94% | 17.09% | 7.67% | 16.72% | 25.11% | 9.37% | 16.75% | 16.98% | 14% | -1.14% | 15.5% | 0.93% | 19.31% | 16.89% | 12.2% | 19.98% | -15.35% | 18.49% | -1.85% | 3.77% | 20.48% | 22.38% | 3% | 16.26% | -4.65% | 58.93% | -13.59% | 47.28% | 25.48% | 85.95% |
| Net Income (Continuing) | 9.23B | 8.1B | 7.37B | 6.29B | 5.92B | 5.08B | 4.06B | 3.7B | 3.18B | 2.71B | 2.38B | 2.41B | 2.09B | 2.06B | 1.77B | 1.54B | 1.32B | 1.1B | 1.28B | 1.08B | 1.1B | 1.06B | 882.39M | 721M | 699.98M | 602.09M | 631.44M | 515.3M | 459.8M | 312.2M | 248.8M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 5M | 514M | 421M | 341M | 304M | 301M | 253M | 226M | 212M | 179M | 157M | 571M | 101M | 80M | 81.86M | 69.32M | 63.36M | 58.61M | 59.27M | 126.12M | 119.73M | 115.83M | 108.86M | 120.8M | 105.5M | 88.2M | 72.3M |
| EPS (Diluted) | 20.76 | 18.21 | 16.56 | 14.16 | 13.14 | 11.27 | 9.02 | 8.26 | 7.09 | 6.08 | 5.33 | 5.37 | 4.65 | 4.63 | 3.89 | 3.30 | 2.92 | 2.47 | 2.89 | 2.37 | 2.30 | 2.18 | 1.85 | 1.53 | 1.48 | 1.29 | 1.35 | 0.87 | 1.02 | 0.74 | 0.61 |
| EPS Growth % | 14% | 9.96% | 16.95% | 7.76% | 16.59% | 24.94% | 9.2% | 16.5% | 16.61% | 14.07% | -0.74% | 15.48% | 0.43% | 19.02% | 17.88% | 13.01% | 18.22% | -14.53% | 21.94% | 3.04% | 5.5% | 17.84% | 20.91% | 3.38% | 14.73% | -4.44% | 55.17% | -14.71% | 37.84% | 21.31% | 79.41% |
| EPS (Basic) | - | 18.24 | 16.60 | 14.18 | 13.17 | 11.30 | 9.05 | 8.32 | 7.15 | 6.11 | 5.36 | 5.41 | 4.69 | 4.68 | 3.94 | 3.35 | 2.97 | 2.50 | 2.95 | 2.42 | 2.35 | 2.24 | 1.92 | 1.58 | 1.54 | 1.34 | 1.41 | 0.91 | 1.07 | 0.76 | 0.64 |
| Diluted Shares Outstanding | 444.36M | 444.8M | 444.76M | 444.45M | 444.76M | 444.35M | 443.9M | 442.92M | 441.83M | 440.94M | 441.26M | 442.72M | 442.49M | 440.51M | 439.37M | 443.09M | 445.97M | 440.45M | 444.24M | 457.64M | 480.34M | 492.04M | 482.46M | 471.24M | 479.26M | 475.83M | 475.74M | 471.12M | 463.37M | 421.89M | 407.87M |
| Basic Shares Outstanding | 443.98M | 443.99M | 443.91M | 443.85M | 443.65M | 443.09M | 442.3M | 439.75M | 438.51M | 438.44M | 438.58M | 439.45M | 438.69M | 435.74M | 433.62M | 436.12M | 438.61M | 433.99M | 434.44M | 447.66M | 469.72M | 473.94M | 459.22M | 455.96M | 453.65M | 449.63M | 446.25M | 439.25M | 431.01M | 410.79M | 388.75M |
| Dividend Payout Ratio | - | 26.95% | 122.72% | 19.88% | 25.63% | 114.8% | 36.96% | 28.37% | 21.98% | 145.73% | 31.74% | 120.53% | 28.38% | 174.6% | 26.1% | 26.61% | 25.94% | 27.26% | 20.66% | 22.7% | 20.87% | 19.24% | 10.44% | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying COST stock.
For fiscal year 2025, Costco Wholesale Corporation (COST) reported total revenue of $275.24B. This represents a 1306.7% increase compared to $19.57B in 1996.
Costco Wholesale Corporation (COST) is profitable, generating $8.10B in net income for the fiscal year ending 2025 with a net profit margin of 2.9%.
Costco Wholesale Corporation (COST) reported an operating income of $10.38B, resulting in an operating profit margin of 3.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Costco Wholesale Corporation (COST) generated $35.35B in gross profit for the year, representing a gross profit margin of 12.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Sustainability of Q4 margin spike
Metrics are mathematically derived from official filings.
Revenue Growth Acceleration Trend
Costco's year-over-year revenue growth has accelerated in recent quarters, reaching 11.1% in 2026Q4, up from 8.3% in 2026Q1, suggesting strengthening consumer demand for bulk goods amid inflationary pressures, as reported in quarterly financial statements.
The acceleration appears to be broad-based, with consistent growth above 8% throughout the year. This trend may indicate successful membership retention and increased traffic, though it warrants monitoring for sustainability as macroeconomic conditions evolve.
Structurally Low Gross Margins with Q4 Anomaly
Costco's gross margin typically resides around 12.5-13.0%, significantly below peers like Walmart at 24.9%, but 2026Q4 reported an unusual spike to 27.7%, which appears to be a one-time deviation from the company's standard low-margin, high-volume model, according to recent filings.
The consistent sub-13% gross margins reflect a deliberate strategy of pricing goods near cost to drive membership revenue. The Q4 anomaly may indicate a non-recurring item or accounting adjustment, as operating margins remained stable at 4.0%, suggesting the gross profit surge did not fully translate to operating performance.
2026Q4 Gross Profit Surge as Inflection Point
In 2026Q4, Costco's gross profit jumped to $26.5B, more than double the typical quarterly level, driving EPS to $13.58—a 131% year-over-year increase—marking a significant operational inflection that requires scrutiny based on reported figures.
This inflection appears to be driven entirely by the gross margin expansion, as operating expenses grew proportionally. The lasting impact is uncertain; if non-recurring, it may flatter the annual results but not signal a permanent shift in profitability.
Sustainability of Anomalous Q4 Margins
Short-sellers would focus on the sustainability of the 2026Q4 gross margin of 27.7%, which is more than double the historical average, potentially masking underlying margin pressure in the core business, as seen in recent SEC filings.
The operating margin remained flat at 4.0%, implying that cost structures absorbed much of the gross profit gain. Investors should monitor whether this is a one-time event or indicative of future margin variability, as Costco's model relies on consistent low margins.
EPS Volatility from SBC and Gross Profit
While EPS growth appears strong in some quarters, such as 2026Q4's 131% surge, stock-based compensation varies significantly, with a peak of $486M in 2026Q1, potentially affecting earnings quality and cash flow, based on reported figures.
The variability in SBC may distort underlying earnings trends, especially when combined with one-time gross profit spikes. Excluding SBC, core operational earnings may show more modest growth, highlighting the need to assess cash-based profitability.