Costco earnings exceed expectations as comparable sales grow 6.4%

Investing.com -- Costco Wholesale Corp (NASDAQ: COST) shares traded 0.3% lower after-hours Thursday despite topping Wall Street estimates on earnings and revenue for its fiscal first quarter of 2026, as investors digested solid results across core membership and merchandise metrics that underpin the retailer’s unique business model. Net income climbed to $2.0 billion, or $4.50 per diluted share, handily beating consensus expectations of $4.28 per share.

Total revenue rose 8.3% to $67.31 billion for the quarter ended November 23, exceeding the $67.08 billion forecast by analysts. Net sales accounted for $65.98 billion of that total, while membership fees, Costco’s high-margin core, hit $1.33 billion, marking a 14% year-over-year increase.

Comparable sales growth, excluding the effects of fuel and foreign exchange, came in at 6.4% for the total company. U.S. comparable sales were up 5.9%, while Canada and other international operations posted adjusted comps of 9.0% and 6.8%, respectively.

Operating income rose to $2.46 billion from $2.20 billion a year earlier, supported by strong private-label sales and lean inventory management.

Costco ended the quarter operating 923 warehouses globally, including 633 in the U.S. and Puerto Rico. The warehouse club continues to expand its international footprint, with stores in over a dozen countries and an e-commerce presence across major markets such as the U.S., Canada, the U.K., and Australia.

Despite a minor after-hours share retreat, the strong execution across sales continues to affirm the retailer’s durable competitive advantage in the retail sector.

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