Net income rose to nearly $3 billion
Costco’s net sales in the fourth quarter reached $93.87 billion, up 11.2% year-over-year from $84.43 billion. After including membership fees, total revenue reached $95.72 billion. Net income increased from $2.61 billion to $2.998 billion, or approximately 15%, while diluted earnings per share rose from $5.87 to $6.75. The results included a one-time positive impact of $0.15 per share related to the refund of tariffs collected under the IEEPA and the subsequent partial use of those funds to lower prices for members. For the full fiscal year 2026, Costco reported net sales of $297.25 billion, compared to $269.91 billion in the previous year. Total annual revenue, including membership fees, reached $303.15 billion, and net income rose from $8.10 billion to $9.23 billion. Diluted annual earnings per share increased from $18.21 to $20.76.
Sales growth was driven by foot traffic, larger purchases, and digital channels
Costco’s comparable sales rose 9.4% in the fourth quarter, with growth of 6.7% after adjusting for changes in gas prices and exchange rate fluctuations. In the United States, comparable sales increased by 10.7% and, after adjusting for these factors, by 7.2%. Canada recorded growth of 5.0% and, after adjusting for these factors, 4.6%, while other international markets grew by 7.0% and, after adjusting for these factors, by 6.2%. Digital channels remained a significant driver of growth, with comparable sales up 19.5% and, after adjusting for exchange rates, up 19.8%. Global foot traffic at stores and through digital channels increased by 3.3%, and the average transaction value rose by 5.9%. After adjusting for gasoline prices and exchange rate changes, the average purchase value was up 3.3%. This means that Costco’s growth was driven not only by higher prices but also by a greater number of purchases and higher customer spending per visit.
The membership base continues to grow, and Executive membership reached a record high
Revenue from membership fees reached approximately $1.85 billion in the fourth quarter, up 7.3% year-over-year. Adjusted for the impact of exchange rates, growth was 7.7%. At the end of the quarter, Costco had 84.1 million paid memberships, up 3.8% from a year ago, and the total number of membership cardholders rose 3.6% to 150.4 million. The higher-priced Executive Membership category grew the fastest. The number of these members increased by 9.4% to 42.3 million, and their share reached an all-time high. The membership renewal rate in the United States and Canada reached 92.3%, and 89.8% globally, with both figures improving by 0.1 percentage points compared to the previous quarter. The membership model remains a key component of Costco’s profitability, as recurring fees provide a stable source of revenue, and the high membership renewal rate indicates that the majority of existing customers are staying with the service.
Costco will accelerate new store openings and increase investments
Costco ended fiscal year 2026 with 939 warehouse stores worldwide. During the year, it opened 28 stores, three of which were relocations of existing locations, resulting in a net increase of 25 new locations. In 2027, the company plans to open another 33 stores, including five relocations, and gradually reach a pace of approximately 30 net new locations per year. The expansion will cover both the United States and international markets. Costco plans to open four new stores in Europe, five in Canada, and one in Mexico in 2027, with further growth planned in Asia and Australia. As the pace of expansion accelerates, both and capital expenditures are growing. Capital expenditures reached approximately $6.4 billion in fiscal year 2026, and management plans for approximately $7.5 billion in 2027. The funds will be directed primarily toward new warehouse stores and the logistics infrastructure needed to support both brick-and-mortar and online sales. Costco’s digitally enabled sales already exceeded $33 billion in 2026 and grew by more than 20% year-over-year, so further investments will also be directed toward the capacity needed to handle growing online sales.
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