Costco's strong Q3 with accelerating sales growth (+11.6% vs +9.1% in Q2) and robust membership trends supports the premium valuation. The S-3ASR shelf filing two days before earnings is likely opportunistic given the strong cash position ($18.9B cash) and low debt ($5.7B). Monitor the conference call for guidance on tariff impacts and membership fee timing.
Price Chart
Executive Summary
Costco reported Q3 FY2026 results with net sales of $69.15B (+11.6% YoY) and diluted EPS of $4.93 (+15.2% YoY), slightly beating the consensus estimate of $4.92. Total comparable sales rose 9.8% (6.6% ex-gas/FX), with strong U.S. comps of 9.4% (6.8% adjusted) and digitally-enabled comps up 21.5%. The company also filed an S-3ASR shelf registration two days prior, allowing for future debt securities offerings, which may signal opportunistic capital raising following strong results.
Key Financial Metrics
Key Facts
- Q3 net sales $69.15B, +11.6% YoY from $61.96B
- Diluted EPS $4.93, +15.2% YoY from $4.28, vs consensus $4.92 (0.1% beat)
- Total company comparable sales +9.8% (+6.6% ex-gas/FX)
- U.S. comparable sales +9.4% (+6.8% ex-gas/FX)
- Digitally-enabled comparable sales +21.5%
- Net income $2.19B, +15.2% YoY
- Membership fee income $1.373B, +10.7% YoY
- Operating cash flow $11.13B YTD, +17.6% YoY
- S-3ASR shelf registration filed June 3, 2026 for future debt securities offerings
- 931 total warehouses as of quarter end
Financial Impact
Revenue beat of ~$0.5B vs consensus ($69.15B vs $69.68B est) — slight miss on top line; EPS beat by $0.01
Risk Factors
- Gross margin compressed 21bps YoY (11.04% vs 11.25%)
- SG&A increased 20bps YoY as a percentage of sales
- S-3ASR shelf filing may precede future debt issuance, potentially diluting equity value
- Geopolitical risks including tariffs and global conflicts noted in forward-looking statements
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000909832-26-000046 |
| Document: cost-20260528.htm | 0000909832-26-000046 |
| Document: costex9928-k52826.htm | 0000909832-26-000046 |
| Document: 0000909832-26-000046-index-headers.html | 0000909832-26-000046 |
| Document: 0000909832-26-000046-index.html | 0000909832-26-000046 |
| Document: 0000909832-26-000046.txt | 0000909832-26-000046 |
| 8-K Data (Synthetic) | 0000909832-26-000046 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 8, 2026 24d ago | ANALYST-UPGRADE | — | awaiting T+20 | — | — |
Aug 25, 2026 5w ago | Court Ruling | $960.01 $904.70 | ▼ −5.76% | ▼ −6.74% | $912.81 (−4.92%) |
Aug 20, 2026 6w ago | Court Ruling | $933.23 $895.31 | ▼ −4.06% | ▼ −4.06% | $912.81 (−2.19%) |
Aug 20, 2026 6w ago | Court Ruling | $933.23 $895.31 | ▼ −4.06% | ▼ −4.06% | $912.81 (−2.19%) |
Aug 3, 2026 8w ago | Court Ruling | $954.08 $943.89 | ▼ −1.07% | ▼ −2.31% | $912.81 (−4.33%) |
Jul 31, 2026 9w ago | Court Ruling | $951.89 $945.47 | ▼ −0.67% | ▼ −3.66% | $912.81 (−4.11%) |
Jul 28, 2026 9w ago | Court Ruling | $966.58 $960.01 | ▼ −0.68% | ▼ −4.06% | $912.81 (−5.56%) |
Jul 27, 2026 9w ago | Court Ruling | $951.58 $971.40 | ▲ +2.08% | ▼ −1.22% | $912.81 (−4.07%) |
Jul 22, 2026 10w ago | Court Ruling | $927.31 $955.87 | ▲ +3.08% | ▲ +0.18% | $912.81 (−1.56%) |
Jul 22, 2026 10w ago | Court Ruling | $927.31 $955.87 | ▲ +3.08% | ▲ +0.18% | $912.81 (−1.56%) |
US Market Status
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