Costco (COST) Stock Beats on Earnings, So Why Did It Barely Move?

TLDR

• Costco’s fiscal fourth-quarter earnings came in at $6.75 per share, beating the $6.54 analysts expected.
• Revenue climbed 11% year over year to $95.7 billion, topping estimates of $94.9 billion.
• Full-year earnings rose 14% to $20.78 per share as annual revenue hit $303.1 billion.
• Membership fee growth slowed for a third straight quarter, a trend investors are watching closely.
• The stock fell 1% on Thursday to close at $896.48 and remains 18% below its 52-week high.

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Costco Wholesale topped Wall Street’s expectations for its fiscal fourth quarter, but investors did not reward the retailer for it. The stock dipped 1% on Thursday to close at $896.48 and stayed roughly flat in the following session.

Costco Wholesale Corporation, COST

The warehouse retailer earned $6.75 per share in the quarter ended August 30. That beat the $6.54 analysts polled by FactSet had forecast.

Revenue rose 11% year over year to $95.72 billion, ahead of the $94.97 billion Wall Street expected. Net sales, the bulk of that figure, grew to $93.87 billion from $84.43 billion a year earlier.

COSTCO $COST Q4’26 EARNINGS HIGHLIGHTS

🔹 Total Revenue: $95.7B (Est. $94.86B) 🟢; +11% YoY
🔹 EPS: $6.75 (Est. $6.53) 🟢; +15% YoY
🔹 Oper Income: $3.8B (Est. $3.74B) 🟢; +14% YoY
🔹 Net Income: $3.0B (Est. $2.9B) 🟢; +15% YoY

Other Q4 Metrics:
🔹 Quarter: 16-week Q4
🔹 Net… pic.twitter.com/eityBOW2Lo

— Wall St Engine (@wallstengine) September 24, 2026

For the full fiscal year, earnings rose 14% to $20.78 per share. Annual revenue increased 10% to $303.1 billion, also ahead of estimates.

Comparable sales rose 9.4% in the quarter. The U.S. led the way with 11% growth, followed by 7% growth internationally and 5% in Canada.

Digitally-enabled comparable sales jumped nearly 20%. Stripping out gas prices and currency swings, adjusted same-store sales rose 6.7% company-wide.

Membership Growth Cools

Membership fee growth has now slowed for three straight quarters, a pattern that has caught analysts’ attention. UBS analyst Michael Lasser called out “solid profitability management” but flagged the slowing pace as the thing investors will focus on next.

It is a shift from the pricing power Costco has leaned on for years. The retailer has kept its $1.50 hot dog and soda combo untouched, and it cut prices on several Kirkland Signature items back in June.

Same-store sales growth has held up despite that, rising 8.8% in June, 8.9% in July, and 8.4% in August. Costco said the Labor Day calendar shift softened August slightly.

Gas and Tariffs Play a Role

CEO Ron Vachris pointed to gas as a bright spot. He said rising prices tied to the war in Iran pushed more members toward Costco’s fuel stations, which just posted a record year.

“Our gas business has had a record year, driven by members seeking value in Costco’s top tier gasoline in the face of rising prices,” Vachris told investors on Thursday’s call. He added that the share of U.S. member households buying gas from Costco hit an all-time high in fiscal 2026.

Tariff refunds also factored into the quarter. Costco received $184 million in refunds and funneled much of that money into lower prices on staples like produce, meat, beverages, and some home goods.

CFO Gary Millerchip said that refund represents just over a third of what the company expects to collect this current quarter. He said Costco plans to keep reinvesting most of it into pricing.

“Our members continue to show resilience in their spending, and they show a willingness to spend in discretionary areas where they’re seeing exciting new items at great value,” Millerchip said.

Costco’s stock is up 4% for the year, but it remains 18% below its 52-week closing high of $1,094.32, set back in May. That prior peak came just before an earnings miss and a slowdown in membership growth spooked investors.

Costco opened 28 new warehouses in fiscal 2026, including three relocations. The company plans to open 33 more locations in fiscal 2027, including five relocations, as it continues targeting roughly 30 net new warehouses a year.