| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 28 | 45.5x | 17.8x | Bottom tier | |
Growth | 54 | 9.2% | 7.1% | Around median | |
Quality | 58 | 21.5% | 4.5% | Around median | |
Safety | 83 | — | 2.6x | Top tier | |
Capital Return | 24 | 0.59% | 2.12% | Bottom tier | |
Momentum | 38 | -0.7% | 2.9% | Bottom tier | |
Sentiment | 72 | 27 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Costco Wholesale Corporation operates a membership-based retail warehouse model and generates revenue from sales of food and sundries and non-food merchandise, along with fuel, pharmacies, and e-commerce, while membership fees represent a highly important recurring source. In the third quarter of fiscal 2026, membership fee income reached $1.37 billion, up 10.7% year over year, with 82.9 million paid memberships and 149 million cardholders; paid executive memberships also reached 41.2 million, up 9.6%. The renewal rate reached 92.2% in the United States and Canada and 89.7% worldwide, reflecting strong member retention.
According to EDGAR data, Costco generated revenue of $70.5 billion, gross profit of $9.0 billion, and net income of $2.2 billion in the third quarter of fiscal 2026, with earnings per share of $4.93; this equates to a gross margin of approximately 12.8% and a net margin of approximately 3.1%. On the earnings call for the twelve-week period ended May 10, 2026, the company reported net sales of $69.2 billion, up 11.6%, and net income of $2.19 billion, up 15%, while the reported gross margin rate declined to 11.04% from 11.25%. On a trailing-twelve-month basis through fiscal 2026, the company recorded revenue of $293.6 billion, net income of $8.8 billion, and earnings per share of approximately $19.89.
The growth mix in the third quarter of fiscal 2026 was broad but tilted toward businesses with different margins: comparable sales rose 9.8% and 6.6% after excluding the impact of fuel inflation and foreign exchange, and digitally enabled comparable sales increased 21.5%. Comparable sales of fresh foods and non-food merchandise grew in the high single digits, and food and sundries grew in the mid-single digits, while ancillary businesses increased in the mid-20s, led by pharmacies, and comparable fuel sales jumped in the high 20s. Faster growth in fuel, e-commerce, and pharmacies created mix pressure on the core margin, despite a one-basis-point improvement in gross margin after excluding fuel inflation.
The average analyst target is $1103.58, within a wide range of $1000 to $1275, and the consensus recommendation is Buy; the average sits slightly above the top of the 52-week range of $1096.50. By contrast, the forward P/E ratio of 41.93 times, compared with 15.88 times for Target and 15.26 times for Dollar General, indicates a significant valuation premium that makes the stock sensitive to any slowdown in membership growth or continued margin pressure, despite strong sales and earnings.
Figures in the text are as of 2026-08-25; the live price is shown at the top of the page.
According to EDGAR data, revenue was $70.5 billion, gross profit was $9.0 billion, net income was $2.2 billion, and earnings per share were $4.93. The May 28, 2026 call reported that net sales for the twelve-week period ended May 10 were $69.2 billion, up 11.6%, and that net income rose 15% to $2.19 billion. Comparable sales increased 9.8%, or 6.6% after excluding fuel inflation and foreign exchange. The reported gross margin rate declined to 11.04% from 11.25% in the comparable quarter.
Membership fee income reached $1.37 billion in the third quarter of fiscal 2026, up 10.7%, or 9.9% after adjusting for foreign exchange. Paid memberships reached 82.9 million and cardholders reached 149 million, while executive memberships increased 9.6% to 41.2 million. The renewal rate was 92.2% in the United States and Canada and 89.7% worldwide. After excluding the fee increase implemented in September 2024 and the impact of foreign exchange, membership income grew 7% due to membership gains and upgrades to executive membership.
Digitally enabled comparable sales rose 21.5% in the third quarter of fiscal 2026, or 20.8% after adjusting for foreign exchange, while website and app visits increased 37%. Personalized product recommendation carousels achieved a conversion rate three times the usual rate and contributed slightly less than $5 billion in e-commerce sales. Visits originating from AI search also achieved triple-digit growth and the highest conversion rate among traffic sources, although their volume remained low. Same-day service supports this trajectory with average delivery of less than 45 minutes in the United States and a satisfaction rating of 4.8 out of 5.
Automated analysis for informational purposes only — not investment advice.
Through Kirkland Signature, Costco targets savings of between 15% and 20% compared with the equivalent national brand, with equal or better quality. Third-quarter fiscal 2026 launches included KS energy drink, KS ultra filtered milk, KS sea salt popcorn, and KS oven roasted chicken dog food. The company also reduced the price of KS Crispy Wings from $16.99 to $14.99, KS golf balls from $32.99 to $29.99, and KS king-size sheets from $89.99 to $79.99. The company links these innovations and price reductions to strengthening the value offered to members and growth in food and sundries.
The reported gross margin rate declined by 21 basis points to 11.04% in the third quarter of fiscal 2026, while the core margin on core sales fell nine basis points. Pressure came from price reductions on eggs and meat, higher transportation costs, and fuel, e-commerce, and pharmacies growing faster than the core merchandise business. Nevertheless, gross margin improved by one basis point after excluding fuel inflation, and management said its trend over a period ranging from 12 to 24 months had been stable with slight improvement. Oil prices and the costs of resin, memory chips, and tariffs may add further pressure on the costs of non-food categories.
Costco opened four net warehouses during the third quarter of fiscal 2026, including three in the United States and an additional business center in Canada, bringing the total to 928 warehouses at quarter-end. The company expects 26 net openings in fiscal 2026, down two buildings from the previous estimate after their openings were moved to fiscal 2027. Management is targeting more than 30 net openings annually over the coming years, with opportunities in Canada, China, Korea, Japan, Spain, the United Kingdom, and France. Capital expenditures for fiscal 2026 are estimated at approximately $6.5 billion to fund new warehouses, remodels, the logistics warehouse network, and digital capabilities.
