Costco Wholesale (NASDAQ:COST) Releases Earnings Results, Beats Expectations By $0.07 EPS

Costco Wholesale (NASDAQ:COST) posted its earnings results on Thursday. The retailer reported $4.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.51 by $0.07, FiscalAI reports. Costco Wholesale had a net margin of 2.96% and a return on equity of 29.35%. The firm had revenue of $69.60 billion during the quarter, compared to the consensus estimate of $68.96 billion.

Here are the key takeaways from Costco Wholesale’s conference call:

• Strong quarterly performance — Net income was $2.035 billion (EPS $4.58, +~14%), net sales $68.24 billion (+9.1%), comparable sales +7.4% and digitally enabled comps +22.6%, with membership fee income up 13.6% and 82.1 million paid members.
• Tariff uncertainty — The IEEPA tariffs were replaced by new global tariffs for at least 150 days, refund timing and amounts remain unclear, and the company faces complexity tracking past tariff pass‑throughs while committing to return any recoveries to members.
• Digital and in-warehouse tech gains — Mobile wallet, pharmacy pay‑ahead, pre-scan, automated pay stations and personalization are speeding checkout and boosting sales (personalized carousels drove over $470 million of e‑commerce sales); site traffic was up 32% and app traffic 45%.
• Margin and cost dynamics are mixed — Reported gross margin improved modestly and core‑on‑core margin rose 22 bps, but SG&A was slightly higher (including increased liability reserves) and there were offsets from higher executive rewards, lower co‑brand card income and a LIFO charge.
• Growth pipeline and real estate strategy — Costco opened 4 warehouses this quarter (924 total), expects ~28 net new openings in FY26 and is targeting 30+ per year going forward while pursuing creative urban/infill formats and continued international expansion.

Costco Wholesale Stock Performance

NASDAQ:COST traded down $24.17 during trading hours on Thursday, reaching $982.57. 2,764,296 shares of the stock were exchanged, compared to its average volume of 2,461,531. The company has a quick ratio of 0.53, a current ratio of 1.04 and a debt-to-equity ratio of 0.19. The firm has a 50 day simple moving average of $956.95 and a 200-day simple moving average of $935.59. Costco Wholesale has a 52 week low of $844.06 and a 52 week high of $1,067.08. The stock has a market capitalization of $436.13 billion, a P/E ratio of 52.63, a P/E/G ratio of 4.83 and a beta of 1.01.

Costco Wholesale Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, February 13th. Stockholders of record on Friday, January 30th were given a dividend of $1.30 per share. The ex-dividend date of this dividend was Friday, January 30th. This represents a $5.20 annualized dividend and a dividend yield of 0.5%. Costco Wholesale’s dividend payout ratio (DPR) is presently 27.85%.

Analyst Upgrades and Downgrades

COST has been the topic of several analyst reports. Roth Mkm reiterated a “sell” rating on shares of Costco Wholesale in a report on Wednesday, February 4th. Wells Fargo & Company lifted their price objective on shares of Costco Wholesale from $900.00 to $950.00 and gave the company an “equal weight” rating in a research note on Thursday, February 5th. BTIG Research reissued a “buy” rating and set a $1,115.00 target price on shares of Costco Wholesale in a research report on Thursday. Mizuho raised their price target on shares of Costco Wholesale from $1,000.00 to $1,065.00 and gave the company an “outperform” rating in a report on Tuesday, February 3rd. Finally, Guggenheim reiterated a “neutral” rating on shares of Costco Wholesale in a report on Monday, December 22nd. Twenty-two research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $1,016.18.

More Costco Wholesale News

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Comparable-sales strength and membership fee growth supported the quarter, with management pointing to resilient demand (including international strength) that helped profit rise year-over-year — evidence of underlying business momentum. Costco Wholesale beats quarterly comparable sales estimates
• Positive Sentiment: Major sell-side support: BTIG reaffirmed a Buy and set a $1,115 target, signaling continued analyst conviction and potential upside vs. current levels. This provides a bullish institutional narrative for investors looking at target/valuation gaps. BTIG buy rating / Benzinga
• Positive Sentiment: Technical tailwind: MarketWatch flagged a recent “golden cross” on COST’s chart (50-day moving average crossing above the 200-day), which can attract momentum-focused buyers ahead of/after earnings. Costco golden cross / MarketWatch
• Neutral Sentiment: Competitive context: coverage of peers (e.g., BJ’s, Target) highlights industry dynamics and relative valuation differences; useful for positioning but not an immediate catalyst for COST. BJ’s Wholesale Club analysis / MarketBeat
• Negative Sentiment: Despite year-over-year gains, reported Q2 revenue and EPS missed some Street estimates (Quiver/aggregated data showed revenue ~$69.6B vs. ~$70.6B est; EPS slightly below), which is the primary near-term reason investors are trimming exposure — misses tend to drive immediate selling even when underlying trends are healthy. Quiver: Q2 results and misses
• Negative Sentiment: Insider selling activity (multiple executive sales reported) and large institutional repositioning noted in filings can be read negatively by some market participants, adding selling pressure even if sales are routine. Quiver: insider & institutional activity
• Negative Sentiment: Market reaction: reports note shares slipped in after‑hours/early trading following the print — consistent with the combination of EPS/revenue misses and some profit-taking after a strong YTD run. TipRanks: after-hours reaction

Insider Activity

In other Costco Wholesale news, Director Susan L. Decker sold 458 shares of the firm’s stock in a transaction that occurred on Friday, January 16th. The shares were sold at an average price of $955.00, for a total value of $437,390.00. Following the sale, the director owned 8,532 shares in the company, valued at approximately $8,148,060. This trade represents a 5.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Russell D. Miller sold 1,500 shares of the business’s stock in a transaction that occurred on Friday, January 9th. The stock was sold at an average price of $916.32, for a total value of $1,374,480.00. Following the transaction, the executive vice president owned 8,240 shares of the company’s stock, valued at approximately $7,550,476.80. This represents a 15.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 6,915 shares of company stock valued at $6,317,097 over the last three months. 0.10% of the stock is currently owned by company insiders.

Institutional Trading of Costco Wholesale

Institutional investors have recently modified their holdings of the company. Mcguire Capital Advisors Inc. purchased a new stake in shares of Costco Wholesale in the fourth quarter valued at $28,000. Imprint Wealth LLC acquired a new position in Costco Wholesale during the third quarter valued at $36,000. Itau Unibanco Holding S.A. raised its position in Costco Wholesale by 527.3% during the fourth quarter. Itau Unibanco Holding S.A. now owns 69 shares of the retailer’s stock valued at $60,000 after buying an additional 58 shares during the period. Swiss RE Ltd. purchased a new stake in Costco Wholesale in the 4th quarter worth about $69,000. Finally, Gilpin Wealth Management LLC acquired a new stake in Costco Wholesale during the 4th quarter worth about $71,000. Institutional investors and hedge funds own 68.48% of the company’s stock.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company’s product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco’s business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.