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Costco Wholesale Corporation Reports Second Quarter and Year-to-Date Operating Results for Fiscal 2026 and February Sales Results

MWN-AI** Summary

Costco Wholesale Corporation, based in Issaquah, Washington, reported strong financial results for the second quarter and year-to-date of fiscal 2026, concluding on February 15, 2026. The company's net sales surged by 9.1% to $68.24 billion for the quarter, compared to $62.53 billion in the same period last year. Over the first 24 weeks, net sales climbed 8.7% to $134.22 billion from $123.52 billion, showcasing robust performance across various regions. Comparable sales indicated encouraging growth, with U.S. operations rising 5.9%, Canada at 10.1%, and Other International markets showing a notable increase of 13.0%.

In terms of profitability, Costco's net income for the quarter reached $2.035 billion, translating to $4.58 per diluted share, up from $1.788 billion or $4.02 per diluted share the previous year. For the first 24 weeks, net income totaled $4.04 billion, or $9.08 per diluted share, surpassing last year's figures of $3.59 billion and $8.06 per diluted share.

For February, net sales advanced 9.5% to $21.69 billion, influenced by a lunar new year shift which positively impacted sales, especially in international markets. Digital sales also thrived, climbing 22.6% for the quarter and 21.8% in February, reflecting a strong consumer shift towards online shopping.

Costco operates 924 warehouses globally, with strong presence in the U.S. and Canada contributing significantly to sales. A conference call to discuss these results was scheduled for March 5, 2026, providing investors and analysts with an opportunity to delve deeper into the company's performance and strategic outlook amidst varying economic conditions. Overall, Costco's second quarter results demonstrate resilience and effective operational management in a competitive retail environment.

MWN-AI** Analysis

Costco Wholesale Corporation's recent operating results for the second quarter and year-to-date period of fiscal 2026 reveal a robust performance that bodes well for its market position. With a 9.1% increase in net sales for the quarter and an 8.7% rise for the first 24 weeks, Costco's performance, driven largely by its U.S. and international sales, reflects its ability to adapt to changing consumer behaviors and economic conditions. Particularly noteworthy is the strong growth in digital sales, which soared 22.6% during the quarter, suggesting that Costco successfully leveraged its online presence amidst evolving shopping patterns.

Investors should pay close attention to Costco's comparable sales metrics, which show growth across all segments: U.S. sales up 5.9%, Canadian sales rising by 10.1%, and international sales increasing by 13.0%. These figures highlight Costco's expanding footprint and its resilience in international markets, particularly with a substantial boost from the Lunar New Year, affecting specific sales categories positively.

Additionally, Costco's net income for the quarter showed a significant jump to $2.035 billion, representing a notable improvement in profitability. With per-share earnings increasing from $4.02 to $4.58 year-over-year, Costco demonstrates effective cost management alongside revenue growth.

From a market perspective, investors might consider Costco a solid buy for those looking for a dependable long-term holding. The company boasts a strong balance sheet, with substantial cash reserves and manageable debt. The consistent dividend payments underscore Costco's commitment to returning value to shareholders.

However, market participants must remain cautious of potential risks, including inflationary pressures and geopolitical tensions affecting supply chains and consumer spending. Investors should closely monitor these factors while considering Costco's strategic initiatives, particularly its digital growth trajectory. As Costco continues to adapt and innovate, it reflects a stable investment choice within the retail sector, which is increasingly vital in a fluctuating economic landscape.

**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.

Source: GlobeNewswire

ISSAQUAH, Wash., March 05, 2026 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the second quarter (twelve weeks) and the first 24 weeks of fiscal 2026, ended February 15, 2026.

Net sales for the quarter increased 9.1 percent, to $68.24 billion, from $62.53 billion last year. Net sales for the first 24 weeks increased 8.7 percent, to $134.22 billion, from $123.52 billion last year.

Comparable sales for the second quarter and first 24 weeks of fiscal 2026 were as follows:

  12 Weeks 12 Weeks 24 Weeks 24 Weeks 
    Adjusted*   Adjusted* 
 U.S.5.9% 6.4% 5.9% 6.1% 
 Canada10.1% 7.6% 8.3% 8.3% 
 Other International13.0% 7.1% 11.0% 7.0% 
          
 Total Company7.4% 6.7% 6.9% 6.5% 
          
 Digitally-Enabled22.6% 21.7% 21.6% 21.2% 

*Excluding the impacts from changes in gasoline prices and foreign exchange.

Net income for the quarter was $2,035 million, $4.58 per diluted share, compared to $1,788 million, $4.02 per diluted share, last year. Net income for the first 24 weeks was $4.04 billion, $9.08 per diluted share, compared to $3.59 billion, $8.06 per diluted share, last year.

For the four-week reporting month of February, ended March 1, 2026, the Company reported net sales of
$21.69 billion, an increase of 9.5 percent from $19.81 billion last year. Net sales for the first 26 weeks were $144.85 billion, an increase of 8.6 percent from $133.36 billion last year.

Comparable sales for the February and year-to-date periods ended March 1, 2026, were as follows:

  4 Weeks 4 Weeks 26 Weeks 26 Weeks 
    Adjusted*   Adjusted* 
 U.S.5.2% 6.0% 5.8% 6.1% 
 Canada12.8% 9.3% 8.5% 8.2% 
 Other International17.9% 10.9% 10.7% 6.6% 
          
 Total Company7.9% 7.0% 6.8% 6.4% 
          
 Digitally-Enabled21.8% 20.8% 21.8% 21.3% 

*Excluding the impacts from changes in gasoline prices and foreign exchange.

Lunar and Chinese New Years occurred on February 17, 19 days later this year. The shift positively impacted February Other International and Total Company sales by approximately 4.0% and 0.5%, respectively.

Costco currently operates 924 warehouses, including 634 in the United States and Puerto Rico, 114 in Canada, 42 in Mexico, 37 in Japan, 29 in the United Kingdom, 20 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, three in France, two in Sweden, and one each in Iceland, and New Zealand. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, March 5, 2026, and is available via a webcast on investor.costco.com (click on “Events & Presentations”).

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. In some cases forward-looking statements can be identified because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, inflation or deflation, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, breaches of security or privacy of member or business information, conditions affecting the acquisition, development, ownership or use of real estate, capital spending, actions of vendors, rising costs associated with employees (generally including health-care costs and wages), workforce interruptions, energy and certain commodities, geopolitical conditions (including tariffs), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to environmental and social matters, public-health related factors, and other risks identified from time to time in the Company’s public statements and reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and the Company does not undertake to update these statements, except as required by law. Comparable sales and comparable sales excluding impacts from changes in gasoline prices and foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with U.S. GAAP.

CONTACTS:Costco Wholesale Corporation
Josh Dahmen, 425/313-8254
Andrew Yoon, 425/313-6305
  

COST-Earn 
COST-Sales

 
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data) (unaudited)
    
 12 Weeks Ended 24 Weeks Ended
 February 15, 2026 February 16, 2025 February 15, 2026 February 16, 2025
REVENUE       
Net sales$68,242  $62,530  $134,220  $123,515 
Membership fees 1,355   1,193   2,684   2,359 
Total revenue 69,597   63,723   136,904   125,874 
OPERATING EXPENSES       
Merchandise costs 60,719   55,744   119,229   109,853 
Selling, general and administrative 6,272   5,663   12,606   11,509 
Operating income 2,606   2,316   5,069   4,512 
OTHER INCOME (EXPENSE)       
Interest expense (33)  (36)  (68)  (73)
Interest income and other, net 148   142   303   289 
INCOME BEFORE INCOME TAXES 2,721   2,422   5,304   4,728 
Provision for income taxes 686   634   1,268   1,142 
NET INCOME$2,035  $1,788  $4,036  $3,586 
        
NET INCOME PER COMMON SHARE:       
Basic$4.58  $4.03  $9.09  $8.08 
Diluted$4.58  $4.02  $9.08  $8.06 
        
Shares used in calculation (000s):       
Basic 443,946   443,982   443,954   443,985 
Diluted 444,420   444,886   444,468   444,888 
        


 
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data) (unaudited)
 
Subject to Reclassification
    
 February 15,
2026
 August 31,
2025
ASSETS   
CURRENT ASSETS   
Cash and cash equivalents$17,383  $14,161 
Short-term investments 857   1,123 
Receivables, net 3,782   3,203 
Merchandise inventories 18,991   18,116 
Other current assets 2,120   1,777 
Total current assets 43,133   38,380 
OTHER ASSETS   
Property and equipment, net 33,645   31,909 
Operating lease right-of-use assets 2,759   2,725 
Other long-term assets 4,102   4,085 
TOTAL ASSETS$83,639  $77,099 
LIABILITIES AND EQUITY   
CURRENT LIABILITIES   
Accounts payable$20,647  $19,783 
Accrued salaries and benefits 5,635   5,205 
Accrued member rewards 2,833   2,677 
Deferred membership fees 3,126   2,854 
Other current liabilities 8,522   6,589 
Total current liabilities 40,763   37,108 
OTHER LIABILITIES   
Long-term debt, excluding current portion 5,688   5,713 
Long-term operating lease liabilities 2,477   2,460 
Other long-term liabilities 2,624   2,654 
TOTAL LIABILITIES 51,552   47,935 
COMMITMENTS AND CONTINGENCIES   
EQUITY   
Preferred stock $0.005 par value; 100,000,000 shares authorized; no shares issued and outstanding     
Common stock $0.005 par value; 900,000,000 shares authorized; 443,692,000 and 443,237,000 shares issued and outstanding 2   2 
Additional paid-in capital 8,570   8,282 
Accumulated other comprehensive loss (1,606)  (1,770)
Retained earnings 25,121   22,650 
TOTAL EQUITY 32,087   29,164 
TOTAL LIABILITIES AND EQUITY$83,639  $77,099 
    


 
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in millions) (unaudited)
 
Subject to Reclassification
  
 24 Weeks Ended
 February 15,
2026
 February 16,
2025
CASH FLOWS FROM OPERATING ACTIVITIES   
Net income$4,036  $3,586 
Adjustments to reconcile net income to net cash provided by operating activities:   
Depreciation and amortization 1,194   1,100 
Non-cash lease expense 149   137 
Stock-based compensation 652   614 
Other non-cash operating activities, net 66   (79)
Changes in working capital 1,587   650 
Net cash provided by operating activities 7,684   6,008 
CASH FLOWS FROM INVESTING ACTIVITIES   
Additions to property and equipment (2,815)  (2,401)
Purchases of short-term investments (250)  (345)
Maturities of short-term investments 510   752 
Other investing activities, net (13)  (13)
Net cash used in investing activities (2,568)  (2,007)
CASH FLOWS FROM FINANCING ACTIVITIES   
Repayments of short-term borrowings (65)  (389)
Proceeds from short-term borrowings 136   370 
Tax withholdings on stock-based awards (358)  (390)
Repurchases of common stock (419)  (412)
Cash dividend payments (1,154)  (515)
Financing lease payments and other financing activities, net (37)  (98)
Net cash used in financing activities (1,897)  (1,434)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 3   (117)
Net change in cash and cash equivalents 3,222   2,450 
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR 14,161   9,906 
CASH AND CASH EQUIVALENTS END OF PERIOD$17,383  $12,356 
        



FAQ**

How does Costco Wholesale Corporation COST plan to sustain its impressive comparable sales growth across its international markets in the coming quarters, especially considering economic uncertainties?

Costco plans to sustain its impressive comparable sales growth internationally by enhancing its value proposition through a focus on low prices, expanding its membership base, optimizing supply chain efficiencies, and investing in e-commerce and new market opportunities amid economic uncertainties.

What strategies is Costco Wholesale Corporation COST implementing to enhance its digitally-enabled sales, which have shown significant growth, contributing to overall revenue performance?

Costco Wholesale Corporation is enhancing its digitally-enabled sales by expanding its e-commerce platform, offering membership incentives for online shopping, improving mobile app functionality, and integrating advanced analytics to personalize customer experiences and streamline operations.

Given the increase in operating expenses reported by Costco Wholesale Corporation COST, what measures will the company take to control costs while maintaining quality and customer satisfaction?

Costco Wholesale Corporation may implement strategies such as optimizing supply chain efficiencies, leveraging technology for inventory management, negotiating better supplier contracts, and enhancing operational processes to control costs while ensuring quality and customer satisfaction.

With Costco Wholesale Corporation COST's recent expansion in international locations, how does the company intend to navigate potential geopolitical risks affecting its global supply chain and sales?

Costco plans to mitigate geopolitical risks affecting its global supply chain and sales by diversifying its sourcing strategies, strengthening relationships with local suppliers, and implementing robust risk management frameworks to adapt to changing international conditions.

**MWN-AI FAQ is based on asking OpenAI questions about Costco Wholesale Corporation (NASDAQ: COST).

Costco Wholesale Corporation

NASDAQ: COST

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$434,255,199,558
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Retailers - Staples
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Issaquah

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