Costco Wholesale Corp.

Discount Stores • Consumer Defensive • Issaquah, WA, United States • COST (NMS)

425 313 8100 999 Lake Drive, Issaquah, WA 98027, United States

Quarter: Q3 2025 Reported: September 25, 2025 Sentiment: Positive

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. It offers merchandise, including sundries, dry groceries, candies, coolers, freezers, deli, liquor, and tobacco; non-food merchandise comprising appliances, small electronics, health and beauty aids, hardware, lawn and garden, sporting goods, tires, toys and seasonal, automotive, stamps, tickets, apparel, furniture, domestics, housewares, special order kiosks, and jewelry; and fresh food, such as meat, produce, service deli, and bakery products. The company is also involved in warehouse ancillary operations, which include gasoline, pharmacies, optical, food courts, hearing-aid centers, and tire installation centers. In addition, it engages in e-commerce, business centers, travel, and other businesses. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.

Analysis Summary

Costco Wholesale Corporation concluded its fiscal year 2025 with robust performance in both the fourth quarter and the full year. For the 16-week fourth quarter, net sales climbed 8.0% to $84.4 billion from $78.2 billion in the prior year. This strong quarterly showing contributed to a full fiscal year net sales increase of 8.1%, reaching $269.9 billion compared to $249.6 billion in fiscal year 2024.
Profitability saw significant gains, with Q4 net income rising 10.9% to $2.610 billion, or $5.87 per diluted share, up from $2.354 billion ($5.29 per diluted share) last year. Fiscal year net income similarly increased by 10.07% to $8.099 billion, or $18.21 per diluted share, compared to $7.367 billion ($16.56 per diluted share) in the previous year.
Comparable sales demonstrated broad strength across all segments. In Q4, total company comparable sales increased 5.7% (6.4% excluding gasoline and foreign exchange impacts). The U.S. saw a 5.1% (6.0% adjusted) increase, Canada 6.3% (8.3% adjusted), and Other International 8.6% (7.2% adjusted). E-commerce was a standout performer, growing 13.6% (13.5% adjusted) in Q4 and 15.6% (16.1% adjusted) for the full fiscal year. Membership fees, a crucial revenue stream, increased 14.0% in Q4 to $1.724 billion, underscoring the strength of Costco's membership model. Operating income for Q4 rose 9.8% to $3.341 billion, and for the full year, it increased 11.8% to $10.383 billion.
The company continues its global footprint expansion, operating 914 warehouses worldwide, including 629 in the U.S. and Puerto Rico. While the press release highlights strong historical performance, it does not provide explicit forward guidance or detailed management commentary on future strategic initiatives beyond the operational results.
Competitive positioning remains strong, evidenced by consistent sales and membership growth. However, the company acknowledges general risk factors such as domestic and international economic conditions, including inflation and exchange rates, intense competition, consumer spending patterns, rising operational costs (labor, energy, commodities), and geopolitical uncertainties. The absence of specific forward-looking financial targets in this release means future performance projections are left to market interpretation based on past trends.

Key Highlights

• Net sales for Q4 2025 increased 8.0% to $84.4 billion, and 8.1% for the full fiscal year to $269.9 billion.
• Q4 2025 net income rose 10.9% to $2.610 billion, with diluted EPS up 10.96% to $5.87.
• Full fiscal year 2025 net income increased 10.07% to $8.099 billion, with diluted EPS up 9.96% to $18.21.
• Total comparable sales grew 5.7% (6.4% adjusted) in Q4, driven by a 13.6% (13.5% adjusted) surge in e-commerce.
• Membership fees increased 14.0% in Q4 to $1.724 billion, reflecting strong member value.
• Operating income for Q4 increased 9.8% to $3.341 billion.
• Costco operates 914 warehouses globally, demonstrating continued expansion.

Financial Metrics

eps

5.87

YoY: 10.96%

revenue

84.4 billion

YoY: 8.0%

guidance

net income

2.61 billion

YoY: 10.9%

Stock Performance (90 Days)

Data through Dec 30, 2025

Positive Signals

• Consistent and strong net sales growth across both Q4 and the full fiscal year.
• Double-digit percentage increases in net income and diluted EPS.
• Robust comparable sales performance, with e-commerce as a significant growth driver.
• Healthy growth in membership fees, indicating strong customer loyalty and value proposition.
• Continued global expansion of its warehouse footprint.

Risks & Concerns

— Domestic and international economic conditions, including inflation, deflation, and exchange rates.
— Effects of competition and regulation in the retail sector.
— Uncertainties in financial markets and consumer spending patterns and debt levels.
— Rising costs associated with employees (healthcare, wages), energy, and certain commodities.
— Geopolitical conditions, including potential impacts from tariffs.