Costco Reports Strong Q3 Fiscal 2026 Results with 15.2% EPS Growth
Summary
Costco Wholesale Corporation reported strong financial results for the third quarter and first 36 weeks of fiscal 2026, with significant increases in net income, diluted EPS, and total revenue, supported by robust comparable sales and membership fee growth.
Key Events
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Strong Q3 Fiscal 2026 Financial Performance
Net income increased 15.2% to $2,192 million, and diluted EPS rose 15.2% to $4.93 for the third quarter ended May 10, 2026, compared to the prior year.
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Robust Sales Growth and Membership Fee Increase
Total net sales grew 11.6% to $69,154 million in Q3 2026, with total company comparable sales up 10%. Membership fee revenue increased 10.7% to $1,373 million, driven by new sign-ups and Executive Membership upgrades.
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Significant Cash Flow Generation and Capital Investments
Net cash provided by operating activities increased to $11,133 million for the first 36 weeks of fiscal 2026. The company plans approximately $6,500 million in capital expenditures for fiscal 2026, including opening 13 additional new warehouses.
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Ongoing Share Repurchase Program
Costco repurchased 184,000 shares for $183 million in Q3 2026 under its $4,000 million authorization, with $1,359 million remaining available.
Analysis
This 10-Q provides the full financial details for Costco's strong third quarter and year-to-date fiscal 2026 performance, confirming the positive headline figures previously announced. The company demonstrated robust growth in net income and diluted EPS, driven by solid comparable sales and increasing membership fees. Strong cash flow from operations and continued capital investments for new warehouses underscore a healthy and expanding business, despite a reported recent decline in shares following the initial earnings announcement.
At the time of this filing, COST was trading at $970.10 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $426.7B. The 52-week trading range was $844.06 to $1,096.50. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.