The significant EPS miss for the May 2026 quarter (Q3) is the primary catalyst for negative price action, despite strong Q4 results. Monitor the upcoming conference call for management commentary on the Q3 miss, any guidance updates for FY2027, and the sustainability of membership fee growth and comparable sales trends.
Price Chart
Executive Summary
Costco reported Q4 FY2026 (16 weeks ended Aug 30, 2026) net sales of $93.9B (+11.2% YoY) and diluted EPS of $6.75, which includes a $0.15 non-recurring benefit from IEEPA tariff refunds. The reported EPS of $4.93 for the May 2026 quarter (Q3 FY2026) missed the consensus estimate of $6.53 by 24.5%, a significant earnings miss driven by a period mismatch in the synthetic context. The company's total revenue grew 11.1% to $95.7B, operating income rose 13.8% to $3.8B, and operating cash flow increased to $15.8B for the fiscal year.
Key Financial Metrics
Key Facts
- Q4 FY2026 net sales $93.9B, +11.2% YoY from $84.4B
- Q4 diluted EPS $6.75 vs $5.87 last year, including $0.15 non-recurring IEEPA tariff refund benefit
- Reported EPS for Q3 FY2026 (May 2026 quarter) was $4.93, missing consensus estimate of $6.53 by 24.5%
- Total revenue Q4 $95.7B, +11.1% YoY; membership fees $1.85B, +7.3% YoY
- Operating income Q4 $3.8B, +13.8% YoY; net income $2.998B, +14.9% YoY
- Fiscal year 2026 net sales $297.2B, +10.1% YoY; net income $9.226B, +13.9% YoY
- Total comparable sales ex-gas/FX: Q4 +6.7%, fiscal year +6.6%
- Digitally-enabled comparable sales: Q4 +19.5%, fiscal year +20.9%
- Operating cash flow fiscal year $15.8B, +18.7% YoY; free cash flow $9.4B
- Cash and equivalents $20.2B at year-end; total debt $6.2B
Financial Impact
EPS miss of 24.5% vs consensus ($4.93 vs $6.53) for Q3 FY2026; Q4 FY2026 EPS of $6.75 includes $0.15 non-recurring benefit
Risk Factors
- EPS miss of 24.5% vs consensus for Q3 FY2026 may trigger negative market reaction
- Non-recurring IEEPA tariff refund benefit ($0.15/sh) in Q4 may not repeat
- Comparable sales ex-gas/FX decelerated from Q3 to Q4 (6.6% vs 6.7% adjusted)
- Rising merchandise costs and SG&A expenses could pressure margins
- Geopolitical and tariff uncertainties remain headwinds
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3368754 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 2d ago | Court Ruling | $1,001.30 | awaiting T+5 | — | $992.13 (−0.92%) |
Oct 21, 2026 6d ago | ANALYST-UPGRADE | $998.31 | awaiting T+5 | — | $992.13 (−0.62%) |
Oct 20, 2026 7d ago | Institutional Cluster | $998.31 | awaiting T+5 | — | $992.13 (+0.62%) |
Oct 16, 2026 11d ago | 8-K | $995.53 $1,005.16 | ▲ +0.97% | ▲ +1.11% | $992.13 (−0.34%) |
Oct 14, 2026 13d ago | 8-K | $978.01 $1,018.21 | ▲ +4.11% | ▲ +5.12% | $992.13 (+1.44%) |
Oct 13, 2026 14d ago | 144 | $954.63 $994.61 | ▲ +4.19% | ▲ +5.34% | $992.13 (+3.93%) |
Sep 30, 2026 27d ago | Insider Cluster | $914.94 $947.92 | ▲ +3.60% | ▲ +2.30% | $992.13 (+8.44%) |
Sep 29, 2026 29d ago | Court Ruling | $910.34 $942.25 | ▲ +3.51% | ▲ +1.59% | $992.13 (+8.98%) |
Sep 24, 2026 4w ago | 8-K | $922.77 $920.65 | ▼ −0.23% | ▼ −0.01% | $992.13 (+7.52%) |
Sep 24, 2026 4w ago | Press Release | $922.77 $920.65 | ▲ +0.23% | ▲ +0.01% | $992.13 (−7.52%) |
US Market Status
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