Costco Posts Record Q1 2026 Earnings, Beats Estimates
Costco Wholesale Corporation (NASDAQ: COST) reported record first-quarter fiscal 2026 results, surpassing analyst expectations. Revenue reached $62.5 billion, up 8% year-over-year, and diluted EPS came in at $4.10, compared to $3.78 in the prior year quarter.
Key Numbers
Costco Wholesale Corporation (NASDAQ: COST) reported record first-quarter fiscal 2026 results, surpassing analyst expectations. Revenue reached $62.5 billion, up 8% year-over-year, and diluted EPS came in at $4.10, compared to $3.78 in the prior year quarter.
Key Financial Results
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Revenue | $62.5B | $57.8B | +8% |
| Net Income | $1.8B | $1.6B | +12.5% |
| Diluted EPS | $4.10 | $3.78 | +8.5% |
Highlights from the Report
- Sales Growth: A 5% increase in traffic and a 3% rise in average transaction value drove revenue growth.
- Store Expansion: Costco opened 12 new warehouses during the quarter, bringing the total to 900 globally.
- E-commerce: Online sales grew 15%, boosted by improved website functionality.
- Membership: Membership fee revenue increased 10%, with a 8% rise in Executive members.
Guidance
Costco expects continued growth in Q2, planning to open 8 new stores. No specific numeric guidance was provided, but the company anticipates margin improvement as inflation pressures ease.
Stock Impact
Costco shares rose 2.5% in after-hours trading to $950, reflecting investor confidence in the company's ability to sustain growth amid economic headwinds.
What This Means for Investors
Costco's strong results reaffirm its position as a leading retailer with consistent sales and earnings growth. However, investors should monitor inflation's impact on margins and the pace of geographic expansion.
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