Costco Reports Strong Q3 Earnings as Consumer Demand and E-Commerce Growth Accelerate
Costco Wholesale delivered a strong performance in the third quarter of fiscal 2026, supported by healthy consumer spending, rising membership revenue, and continued growth across its e-commerce business.
Investors continue to closely monitor Costco as the retailer benefits from resilient customer demand, high membership renewal rates, and expanding digital sales despite ongoing economic uncertainty.
Revenue and Earnings Beat Expectations
Costco reported net sales of $69.15 billion for the quarter, representing an 11.6% increase from $61.97 billion recorded during the same period last year.
Including membership fee revenue, total quarterly revenue reached $70.53 billion for the period ended May 10, 2026. The result exceeded analysts’ expectations of $69.62 billion.
The company also posted strong profit growth. Net income increased to $2.19 billion, or $4.93 per diluted share, compared with $1.90 billion, or $4.28 per diluted share, in the prior-year quarter.
Comparable Sales Remain Strong
Costco continued to deliver impressive comparable sales growth across its global operations.
Worldwide comparable sales rose 9.8% during the quarter. When excluding the effects of gasoline prices and foreign exchange fluctuations, adjusted comparable sales increased 6.6%.
The retailer’s digital business remained a key growth driver, with e-commerce sales surging 21.5% year-over-year, highlighting strong consumer engagement across online channels.
International Markets Continue to Expand
Costco’s international operations also produced solid results during the quarter.
Comparable sales increased 10.7% in Canada and climbed 11.2% across other international markets. In the United States, comparable sales advanced 9.4%, reflecting continued strength in the company’s core market.
The strong performance across regions demonstrates Costco’s ability to attract shoppers both domestically and internationally.
Strong Fiscal Year-To-Date Results
For the first 36 weeks of fiscal 2026, Costco generated net sales of $203.37 billion, representing a 9.6% increase compared with the same period a year earlier.
Net income for the period rose to $6.23 billion, or $14.01 per diluted share, highlighting the company’s ability to maintain profitable growth while expanding operations.
Store Expansion and Growing Global Footprint
Costco ended the quarter with 931 warehouse locations worldwide, including 639 warehouses across the United States and Puerto Rico.
The company continues to expand its global presence while investing in digital capabilities to strengthen its long-term growth strategy and serve a growing customer base.
Cash Flow Remains Robust
In addition to strong revenue and earnings growth, Costco generated substantial cash flow during the fiscal year.
Operating cash flow reached $11.13 billion during the first 36 weeks of fiscal 2026, up significantly from $9.47 billion during the same period last year.
The improvement in cash generation further reinforces Costco’s financial strength and provides additional flexibility to support future expansion initiatives, shareholder returns, and operational investments.
