OpenNashEarnings

Costco (COST) · Retail

Costco Q3 FY2026 earnings: summary, key numbers & outlook

Results filed 28 May 2026 · Quarter ended 10 May 2026

Press release ↗Investor relations ↗

Summaries and transcripts are machine-generated and can contain errors.

In brief

Costco's third-quarter net sales increased 11.6 percent, to $69.15 billion, and net income was $2.19 billion, $4.93 per diluted share, compared to $1.90 billion, $4.28 per diluted share, last year.

Costco's twelve-week third quarter ended May 10, 2026 was strong. Net sales rose 11.6 percent to $69.15 billion, and total company comparable sales rose 9.8 percent. Excluding gasoline prices and currency, comparable sales rose 6.6 percent. Net income was $2.19 billion, or $4.93 per diluted share, up from $4.28 a year earlier. Membership fees rose to $1,373 million from $1,240 million, and e-commerce was a standout, with digitally-enabled comparable sales up 21.5 percent.

The documents give no sales or earnings guidance. Management expects to open 12 more warehouses in the rest of the fiscal year, ending at 940. Gross margin was 11.04%, down 21 bps from last year, and about flat once gasoline is excluded. SG&A as a share of sales rose 20 bps to 8.96%. Part of the sales growth came from higher gasoline prices and currency effects. Capital spending is also rising, with additions to property and equipment of $4,228 million over 36 weeks.

Key numbers

Net sales · GAAP
$69.15 billion

up 11.6 percent from $61.96 billion last year

Net income · GAAP
$2.19 billion

compared to $1.90 billion last year

Diluted EPS · GAAP
$4.93

compared to $4.28 last year

Operating income (12 weeks, $ millions) · GAAP
$2.8B

compared to 2,530 last year

Gross margin
11.04%

down 21 bps vs Q3 FY’25; up 1 bp excluding gas

Net cash provided by operating activities (36 weeks, $ millions) · GAAP
$11.1B

compared to 9,468 for the first 36 weeks last year

Segment or metricValueChange
U.S. comparable sales+9.4%+6.8% adjusted
Canada comparable sales+10.7%+6.2% adjusted
Other International comparable sales+11.2%+5.9% adjusted
Digitally-enabled comparable sales+21.5%+20.8% adjusted
Worldwide membership renewal rate89.7%
Paid memberships82.9MM+4.1% growth
Where each number comes from
  • Net sales: “Net sales for the quarter increased 11.6 percent, to $69.15 billion, from $61.96 billion last year.”
  • Net income: “Net income for the quarter was $2.19 billion, $4.93 per diluted share, compared to $1.90 billion, $4.28 per diluted share, last year.”
  • Diluted EPS: “Net income for the quarter was $2.19 billion, $4.93 per diluted share, compared to $1.90 billion, $4.28 per diluted share, last year.”
  • Operating income (12 weeks, $ millions): “Selling, general and administrative | 6,193 | 5,679 | 18,799 | 17,188 Operating income | 2,815 | 2,530 | 7,884 | 7,042”
  • Gross margin: “Financial Performance | Q3 Highlights 5 Gross Margin 11.04% -21 bps vs Q3 FY’25 +1 bps ex. gas impact”
  • Net cash provided by operating activities (36 weeks, $ millions): “Changes in working capital | 2,086 | 1,414 Net cash provided by operating activities | 11,133 | 9,468 CASH FLOWS FROM INVESTING ACTIVITIES”
  • U.S. comparable sales: “Comp Sales US Canada Other International Total Company Sales +9.4% +10.7% +11.2% +9.8% Ticket +7.5% +6.0% +8.1% +7.3%”
  • Canada comparable sales: “Comp Sales US Canada Other International Total Company Sales +9.4% +10.7% +11.2% +9.8% Ticket +7.5% +6.0% +8.1% +7.3%”
  • Other International comparable sales: “Comp Sales US Canada Other International Total Company Sales +9.4% +10.7% +11.2% +9.8% Ticket +7.5% +6.0% +8.1% +7.3%”
  • Digitally-enabled comparable sales: “Digitally-Enabled Comparable Sales +21.5% Adjusted Digitally- Enabled Comparable Sales2 +20.8% Net Sales Growth”
  • Worldwide membership renewal rate: “89.7% Worldwide Membership Renewal Rate 148.5MM Total Cardholders +4.0% Growth 41.2MM Executive Memberships Membership”
  • Paid memberships: “92.2% US/CN Renewal Rate 82.9MM Paid Memberships +4.1% Growth 75.0% Penetration of Sales to Executive Members Financial Performance”

Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.

From the filingQ3 FY2026vs year agovs last quarter
Revenue$70.5B+11.6%+1.3%
Operating income$2.8B+11.3%+8.0%
Net income$2.2B+15.2%+7.7%
Diluted EPS$4.93+15.2%+7.6%
Free cash flow$2.0B−12.6%+19.3%
Operating margin4.0%+0.0 pts+0.3 pts

Calculated by code from XBRL, not by the model.

Outlook

MetricPeriodOutlook
Estimated total warehouses at fiscal 2026 endend of fiscal 2026940

Key takeaways

  1. Sales growth was strong and broad-based

    Net sales increased 11.6 percent, to $69.15 billion. Total company comparable sales were 9.8%, and 6.6% adjusted for gasoline prices and foreign exchange.

  2. Digital sales grew far faster than the company

    Digitally-enabled comparable sales were +21.5%, and e-commerce site and app traffic was +37%.

  3. Gross margin fell on reported basis

    Gross margin was 11.04%, down 21 bps from Q3 FY’25, but +1 bps excluding the gas impact. SG&A was 8.96%, up 20 bps, or +2 bps excluding gas.

  4. Membership base and renewals remain healthy

    Membership fees were $1,373 million versus $1,240 million a year ago. The worldwide renewal rate was 89.7% with 82.9MM paid memberships.

Charts

Revenue$70.5B+11.6% y/yQ3 FY26
Q1 FY25: $62.2BQ1 25$62.2BQ2 FY25: $63.7BQ2 25$63.7BQ3 FY25: $63.2BQ3 25$63.2BQ4 FY25: $86.2B (worked out from the annual figure)Q4 25$86.2BQ1 FY26: $67.3BQ1 26$67.3BQ2 FY26: $69.6BQ2 26$69.6BQ3 FY26: $70.5BQ3 26$70.5BQ4 FY26: $95.7B (worked out from the annual figure)Q4 26$95.7B

Fourth quarter worked out from the annual figure.

Data
Q1 FY25$62.2B
Q2 FY25$63.7B
Q3 FY25$63.2B
Q4 FY25$86.2B *
Q1 FY26$67.3B
Q2 FY26$69.6B
Q3 FY26$70.5B
Q4 FY26$95.7B *
Diluted EPS (GAAP)$4.93+15.2% y/yQ3 FY26
Q1 FY25: $4.04Q1 25$4.04Q2 FY25: $4.02Q2 25$4.02Q3 FY25: $4.28Q3 25$4.28Q1 FY26: $4.50Q1 26$4.50Q2 FY26: $4.58Q2 26$4.58Q3 FY26: $4.93Q3 26$4.93
Data
Q1 FY25$4.04
Q2 FY25$4.02
Q3 FY25$4.28
Q1 FY26$4.50
Q2 FY26$4.58
Q3 FY26$4.93

Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.

Operating margin4.0%+0.0 pts y/yQ3 FY26
Q1 FY25: 3.5%Q1 253.5%Q2 FY25: 3.6%Q2 253.6%Q3 FY25: 4.0%Q3 254.0%Q4 FY25: 3.9%Q4 253.9%Q1 FY26: 3.7%Q1 263.7%Q2 FY26: 3.7%Q2 263.7%Q3 FY26: 4.0%Q3 264.0%Q4 FY26: 4.0%Q4 264.0%
Data
Q1 FY253.5%
Q2 FY253.6%
Q3 FY254.0%
Q4 FY253.9%
Q1 FY263.7%
Q2 FY263.7%
Q3 FY264.0%
Q4 FY264.0%
Free cash flow$2.0B−12.6% y/yQ3 FY26
Q1 FY25: $2.0BQ1 25$2.0BQ2 FY25: $1.6BQ2 25$1.6BQ3 FY25: $2.3BQ3 25$2.3BQ4 FY25: $1.9BQ4 25$1.9BQ1 FY26: $3.2BQ1 26$3.2BQ2 FY26: $1.7BQ2 26$1.7BQ3 FY26: $2.0BQ3 26$2.0BQ4 FY26: $2.5BQ4 26$2.5B
Data
Q1 FY25$2.0B
Q2 FY25$1.6B
Q3 FY25$2.3B
Q4 FY25$1.9B
Q1 FY26$3.2B
Q2 FY26$1.7B
Q3 FY26$2.0B
Q4 FY26$2.5B

Operating cash flow minus capital expenditure, from cash flow statements.

Questions

What were Costco's Q3 fiscal 2026 results?

Net sales increased 11.6 percent, to $69.15 billion, and net income was $2.19 billion, or $4.93 per diluted share, versus $4.28 a year ago. Total revenue including membership fees was $70,527 million.

How strong were Costco's comparable sales?

Total company comparable sales rose 9.8%, or 6.6% excluding gasoline prices and foreign exchange. Digitally-enabled comparable sales rose 21.5%.

How did Costco's margins change?

Gross margin was 11.04%, down 21 bps from a year ago but up 1 bp excluding gas. SG&A was 8.96%, up 20 bps, or up 2 bps excluding gas.

How is Costco's membership business performing?

The worldwide renewal rate was 89.7%, with 82.9MM paid memberships, up 4.1%. Membership income growth was 10.7%, or 9.9% excluding foreign exchange.

Did Costco give financial guidance, and what is its expansion plan?

The documents contain no sales or earnings guidance. Costco expects 12 more warehouse openings in the rest of the fiscal year, reaching an estimated 940 by fiscal 2026 end, up from 931 currently operating.

Documents

SEC filing