Costco Wholesale Corporation (COST) Q4 2026 Financial Results Summary
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Costco Wholesale Corporation (COST) Q4 2026: Strong Sales Growth, Improved Earnings — Positive Outlook
Costco Wholesale Corporation reported its fourth quarter and fiscal year 2026 results, showcasing a robust performance compared to the previous year. The company achieved net sales of $93.9 billion for the quarter, marking an increase of $9.5 billion or +11.2% year-over-year from $84.4 billion. For the fiscal year, net sales rose to $297.2 billion, up $27.3 billion or +10.1% from $269.9 billion last year.
This quarter represents a strong performance for shareholders, driven by significant sales growth and improved profitability. The net income for the fourth quarter was $2.998 billion, translating to $6.75 per diluted share, compared to $2.610 billion or $5.87 per diluted share in the same quarter last year. This reflects an increase of $388 million or +14.9% in net income and a $0.88 increase in earnings per share (EPS).
Key Metrics:
- Net Sales (Q4 2026): $93.9 billion, up $9.5 billion or +11.2% YoY from $84.4 billion.
- Net Income (Q4 2026): $2.998 billion, up $388 million or +14.9% YoY from $2.610 billion.
- EPS (Q4 2026): $6.75, up $0.88 or +15% YoY from $5.87.
- Net Sales (Fiscal Year 2026): $297.2 billion, up $27.3 billion or +10.1% YoY from $269.9 billion.
- Net Income (Fiscal Year 2026): $9.226 billion, up $1.127 billion or +13.9% YoY from $8.099 billion.
- EPS (Fiscal Year 2026): $20.76, up $2.55 or +14% YoY from $18.21.
Costco's comparable sales for the fourth quarter increased by 9.4%, with U.S. comparable sales rising by 10.7%. The digital segment saw impressive growth, with digitally-enabled sales increasing by 19.5% for the quarter. This indicates a strong consumer demand and effective adaptation to changing shopping behaviors.
The company also reported a non-recurring benefit of $0.15 per diluted share from IEEPA tariff refunds, which positively impacted the earnings for the quarter. However, this was partially offset by reinvestments in member value, suggesting a commitment to enhancing customer experience.
Additional Highlights:
- Total Revenue (Q4 2026): $95.723 billion, up from $86.156 billion YoY.
- Operating Income (Q4 2026): $4.009 billion, compared to $3.510 billion last year.
- Cash Dividend Payments: $2.458 billion, up from $2.183 billion YoY.
- Share Repurchases: $848 million, down from $903 million YoY.
Costco's balance sheet remains strong, with total assets of $89.045 billion, up from $77.099 billion a year ago. The company continues to expand its warehouse footprint, operating 939 warehouses globally, which positions it well for future growth.
Looking ahead, investors should monitor Costco's ability to maintain its sales momentum and manage costs effectively in the face of inflationary pressures. The upcoming holiday season will be a critical period for the company, as consumer spending typically increases during this time. Additionally, any updates on membership growth and digital sales performance will be key indicators of Costco's ongoing success.
In conclusion, Costco's fourth quarter results reflect a solid performance with significant sales and earnings growth, making it a favorable quarter for shareholders. The company's strategic focus on enhancing member value and expanding its digital presence bodes well for future growth.
Here are the extracted tables in Markdown format:
Note: All amounts in the following tables are in thousands/millions.
CONSOLIDATED STATEMENTS OF INCOME
| Weeks | August 30, 2026 | August 31, 2025 | Weeks | August 30, 2026 | August 31, 2025 |
|---|---|---|---|---|---|
| 16 | 93,873 | 84,432 | 52 | 297,247 | 269,912 |
| 16 | 1,850 | 1,724 | 52 | 5,907 | 5,323 |
| 16 | 95,723 | 86,156 | 52 | 303,154 | 275,235 |
| 16 | 83,531 | 75,037 | 52 | 264,279 | 239,886 |
| 16 | 8,391 | 7,778 | 52 | 27,190 | 24,966 |
| 16 | 3,801 | 3,341 | 52 | 11,685 | 10,383 |
| 16 | -45 | -46 | 52 | -145 | -154 |
| 16 | 253 | 215 | 52 | 711 | 589 |
| 16 | 4,009 | 3,510 | 52 | 12,251 | 10,818 |
| 16 | 1,011 | 900 | 52 | 3,025 | 2,719 |
| 16 | 2,998 | 2,610 | 52 | 9,226 | 8,099 |
| 16 | 6.75 | 5.88 | 52 | 20.78 | 18.24 |
| 16 | 6.75 | 5.87 | 52 | 20.76 | 18.21 |
| 16 | 443,975 | 444,007 | 52 | 443,953 | 443,985 |
| 16 | 444,364 | 444,706 | 52 | 444,427 | 444,803 |
