Costco Wholesale Corp (NASDAQ:COST) reported stronger-than-expected earnings and revenue for its fiscal first quarter of 2026, although its shares edged 0.6% lower in U.S. premarket trading on Friday.
Net income for the period climbed to $2.0 billion, equivalent to $4.50 per diluted share, surpassing analysts’ expectations of $4.28 per share.
Revenue increased 8.3% year-on-year to $67.31 billion for the quarter ended 23 November, exceeding the consensus estimate of $67.08 billion. Net sales accounted for $65.98 billion, while membership fees—one of Costco’s highest-margin revenue streams—rose 14% to $1.33 billion.
Comparable sales growth, excluding fuel and foreign exchange effects, reached 6.4% across the group. U.S. comparable sales advanced 5.9%, while Canada delivered adjusted growth of 9.0% and international markets posted a 6.8% increase.
Operating income improved to $2.46 billion from $2.20 billion a year earlier, supported by robust private-label performance and disciplined inventory management.
At quarter-end, Costco operated 923 warehouses worldwide, including 633 locations across the U.S. and Puerto Rico. The retailer continues to expand internationally, with stores in more than a dozen countries and e-commerce operations spanning key markets such as the U.S., Canada, the U.K. and Australia.
The results underscore ongoing strength in value-focused retail, mirroring solid performances from peers including Walmart, Dollar Tree and Dollar General. The trend highlights how consumers—particularly in the U.S.—are increasingly seeking discounts amid ongoing economic uncertainty, a cooling labour market and persistently high inflation.