Costco Posts Record $69 Billion Quarter With 11 Percent Sales Growth Driven by Strong Shopper Demand

Elementary

Costco Wholesale reported its best quarterly sales results ever on May 28, 2026. The company's net sales for the three-month period ending May 10 reached $69.15 billion, up 11.6 percent from the same time last year. The results showed that more Americans are still choosing to shop at warehouse clubs even as some retailers have struggled with slower sales.

Comparable store sales, which measure how much existing stores sold compared to the year before, grew by 9.8 percent. If gasoline prices and currency differences are removed from the calculation, comparable sales still grew a healthy 6.6 percent. Online sales were even stronger, rising 21.5 percent, showing that Costco's app and website are becoming more popular with shoppers.

The company also made a strong profit. Net income, which is the money left after all costs are paid, was $2.19 billion. Earnings per share, which is the profit divided by the number of company shares, came in at $4.93, up from $4.28 in the same quarter last year.

Costco operates on a membership model, meaning shoppers pay an annual fee to access the warehouse clubs. Members receive access to bulk products at lower prices than typical grocery or department stores. The company's loyal membership base and its ability to offer competitive prices have helped it stand out in a challenging retail environment.

quarterly: happening four times a year, once every three months

net sales: the total amount of money a company earns from selling goods, after returns

comparable store sales: a measure of how much existing stores sold compared to the same time last year

earnings per share: a company's profit divided by the number of its shares, showing how much each share earned

net income: the profit a company makes after all costs, taxes, and expenses are deducted

annual fee: a fixed payment made once a year to access a service

bulk: a very large quantity of something sold together at once

currency: the money used in a particular country, such as the dollar or euro

Intermediate

Costco Wholesale delivered a record-breaking fiscal third quarter on May 28, 2026, reporting net sales of $69.15 billion for the period ended May 10 an 11.6 percent year-over-year increase that beat analyst consensus estimates. Net income climbed to $2.19 billion, or $4.93 per diluted share, compared to $1.90 billion, or $4.28 per diluted share, in the comparable prior-year period. The results were broadly welcomed by investors, who have long regarded Costco as one of the most resilient retailers in the United States.

Comparable sales, which strip out the effect of new store openings to measure organic growth, rose 9.8 percent on an all-in basis, or 6.6 percent after excluding the impact of gasoline price fluctuations and foreign-exchange movements. These adjusted figures are considered a cleaner gauge of underlying consumer demand. Digitally-enabled comparable sales surged 21.5 percent, reflecting rapid adoption of Costco's app and website for both browsing and order pickup.

The results arrived at a time when many traditional retailers have reported softening sales, raising concerns about consumer confidence and discretionary spending. Costco's warehouse model, which relies on members paying an annual fee in exchange for access to bulk goods at sharp discounts, appears to be holding up well. The company's membership renewal rate historically exceeds 90 percent in the United States and Canada, providing a predictable revenue base that rivals' standard retail formats cannot match.

Analysts noted that the 21.5 percent digital growth rate signals that Costco's investments in its e-commerce platform and same-day delivery partnerships are beginning to pay off more meaningfully. They also flagged that comparable sales growth was broad-based across food and non-food categories, as well as across international markets, suggesting that demand strength was not solely driven by any one geography or product segment.

year-over-year: comparing data from one year with the same period in the previous year

diluted share: a measure of earnings per share that includes all potential extra shares, giving a more cautious figure

organic growth: business growth that comes from existing operations rather than acquisitions or new store openings

discretionary spending: money spent on non-essential items such as entertainment, fashion, or luxury goods

e-commerce: buying and selling goods or services online

consensus estimate: the average financial forecast made by a group of market analysts

renewal rate: the percentage of customers who choose to keep paying for a subscription or membership each year

broad-based: spread widely across many areas, categories, or groups rather than concentrated in one

Advanced

Costco Wholesale's fiscal third-quarter results for the period ended May 10, 2026, released after market hours on May 28, exceeded Wall Street expectations on every headline metric. Net sales of $69.15 billion represented an 11.6 percent year-over-year advance, while net income of $2.19 billion translated to diluted earnings per share of $4.93, a 15.2 percent improvement over the $4.28 reported in the comparable prior-year quarter. The results reaffirmed Costco's status as one of the highest-quality operators in global retail, with a consistency of execution that has historically commanded a premium valuation multiple relative to the broader sector.

Comparable sales growth of 9.8 percent on an all-in basis, moderating to 6.6 percent on a fuel- and foreign-exchange-adjusted basis, indicated robust underlying demand momentum. Digitally-enabled comparable sales, which include both e-commerce orders and click-and-collect transactions, accelerated to 21.5 percent, substantially outpacing the physical channel and reflecting the growing influence of Costco's app-driven shopping experience. Analysts at Bernstein and Barclays characterized the digital trajectory as evidence that Costco's multi-year logistics and technology investments are reaching an inflection point in consumer adoption.

The quarter's performance merits examination in the broader macroeconomic context. Several competing mass-market and mid-tier specialty retailers have reported softening comparable sales and margin compression in recent quarters, citing pressure from tariff-driven cost inflation and a rotation in consumer spending from goods to services. Costco's ability to sustain double-digit comparable growth amidst these headwinds underscores the structural advantages of the warehouse membership model: bulk procurement leverage reduces per-unit costs, predictable membership renewal income above 90 percent in North America insulates the top line from cyclical demand softness, and the treasure-hunt merchandise rotation engenders frequent store visits that rivals struggle to replicate.

Looking ahead, management's commentary on the earnings call will be closely scrutinized for signals on membership fee renewal trends and any elasticity observations from the company's most recent fee increase cycle. Institutional investors will also monitor whether the 21.5 percent digitally-enabled growth rate, if sustained, begins to shift the calculus on Costco's long-term capital expenditure profile, particularly with respect to distribution center automation and micro-fulfillment buildouts that could reduce reliance on third-party same-day delivery partnerships.

valuation multiple: a ratio used to compare a company's stock price to its earnings or sales, reflecting how highly investors value it

inflection point: a moment when a trend changes direction significantly, signaling a new growth phase or decline

margin compression: a reduction in the percentage of profit a company earns per dollar of sales

procurement leverage: the advantage a large buyer gains by purchasing goods in enormous quantities, enabling lower prices from suppliers

click-and-collect: an online shopping model where customers order digitally but pick up purchases at a physical store

capital expenditure: money a company spends on physical assets such as buildings, equipment, or technology infrastructure

micro-fulfillment: a warehousing model using small, highly automated storage facilities near urban customers to enable fast delivery

treasure-hunt merchandise: a retail strategy of offering limited-run or unexpected products to encourage repeated store visits

Beginner

Elementary

Intermediate

Advanced

Costco Posts Record $69 Billion Quarter With 11 Percent Sales Growth Driven by Strong Shopper Demand

Multiple Choice

True or False

Fill in the Blank