The strong top-line growth, margin expansion, and digital acceleration suggest sustained consumer demand and pricing power. Traders should monitor whether the post-earnings stock dip reflects profit-taking or emerging concerns, but fundamentals remain robust. Watch for continued international and e-commerce momentum in next quarter.
Price Chart
Executive Summary
Costco reported strong second-quarter and year-to-date fiscal 2026 results, with net sales up 9.1% to $68.24 billion and net income rising 13.8% to $2.035 billion, or $4.58 per share. Comparable sales growth was robust across all regions, particularly in Other International (13.0% adjusted) and digitally-enabled channels (22.6% adjusted), despite a shift in Lunar New Year timing boosting February results.
Key Financial Metrics
Key Facts
- Net sales for Q2 increased 9.1% year-over-year to $68.24 billion
- Net income rose to $2.035 billion ($4.58 per diluted share) from $1.788 billion ($4.02) last year
- Total company adjusted comparable sales grew 7.4% for the quarter and 6.9% for the first 24 weeks
- Digitally-enabled sales surged 22.6% (adjusted) for the quarter
- Lunar New Year shift positively impacted February sales by ~4.0% in Other International and ~0.5% in Total Company
- Cash and cash equivalents increased to $17.38 billion, up $3.2 billion from start of period
Financial Impact
Revenue increased by $5.71 billion YoY; net income up $247 million. Operating income grew 12.5% to $2.606 billion. Free cash flow (operating cash flow less capex) was approximately $4.87 billion over 24 weeks.
Risk Factors
- Forward-looking statements include risks from inflation, geopolitical conditions, exchange rates, and consumer spending patterns
- Lunar New Year timing boosted February sales; this tailwind won't repeat in future periods
- Membership fee growth slowed slightly (up 13.6% YoY) compared to sales growth
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3250684 |
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%) |
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