Key Stats for Costco Stock
- Price change for Costco stock in Last 6 Months: -6%
- $COST Stock Price as of Sep. 24: $896
- 52-Week High: $1097
- $COST Stock Price Target: $1068
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What Happened?
Costco (COST) reported Q4 results after the bell on Thursday, and the numbers beat Wall Street’s forecasts.
Here’s how the quarter stacked up against LSEG estimates:
- Revenue: $95.72 billion, up 11.1% (vs. $94.89 billion expected)
- Earnings per share: $6.75 (vs. $6.53 expected)
Net income rose to about $2.93 billion, up from $2.61 billion a year ago.
Part of the gain came from tariff refunds. Costco received $184 million in the quarter, which added $0.15 to earnings per share.
Without that one-time boost, EPS still grew about 12%. Costco put much of that money back into lower prices on items like produce, meat, and home furnishings.
Same-store sales grew 9.4%. The U.S. led with a 10.7% gain.
Without the effect of gas prices and currency changes, same-store sales rose 6.7%. Digital sales jumped 19.5%.
For the full year, net sales grew 10.1% to $297.2 billion.
Membership is the heart of Costco’s business. Membership fees rose to $1.85 billion.
Executive members, who pay a higher fee, climbed 9.4% to 42.3 million. In the U.S. and Canada, 92.3% of members renewed.
Costco is also getting younger. Members under 40 now make up more than a quarter of its base.
Delivery is expanding too. Uber Eats and DoorDash will now cover the entire U.S., and management says these sales mostly add to warehouse sales rather than replace them.
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What the Market Is Telling Us About Costco Stock
The market’s reaction was muted. Costco stock barely moved in Friday premarket trading despite the beat.
That’s partly because investors expect Costco to deliver. Growth is steady, but some areas are cooling. Membership growth has slowed for eight straight quarters, and the tariff refund boost won’t last forever.
Spending is also rising. Costco plans to invest about $7.5 billion in fiscal 2027, up from $6.4 billion this year.
It aims to open 33 warehouses, including five relocations. It already runs 939 warehouses worldwide.
For Costco stock investors, the bigger question is whether this expansion can keep sales and membership growing.
The quarter showed the business is healthy. But a strong report alone wasn’t enough to lift Costco stock.
The next test for Costco stock will be whether new warehouses keep driving growth in 2027.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
