Costco Wholesale Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 11 December 2025: press release. The quarter’s numbers.

Key takeaways

Net sales rose 8.2 percent: Net sales were $65,978 million against $60,985 million a year earlier. The company reported the increase as 8.2 percent. Source
Net income and diluted EPS rose: Net income was $2,001 million, or $4.50 per diluted share, against $1,798 million, or $4.04 per diluted share, a year earlier. Source
Total company comparables were 6.4%: Total company comparable sales were 6.4% both as reported and excluding gasoline price and foreign exchange effects. The first column is reported and the second adjusted. Source
Digitally-Enabled sales grew 20.5%: Digitally-Enabled comparable sales were 20.5%, the same reported and adjusted. The prior release reported e-commerce comparables of 13.6% for the 16-week fourth quarter. Source
Merchandise inventories increased: Merchandise inventories were $21,141 million at November 23, 2025, against $18,116 million at August 31, 2025. Source
Operating cash flow was higher: Net cash provided by operating activities was $4,688 million against $3,260 million. Changes in working capital contributed $1,534 million against $451 million. Source
Warehouse count rose to 923: The company operates 923 warehouses. The prior release reported 914 warehouses. Source

“Net sales for the first quarter increased 8.2 percent, to $65.98 billion, from $60.99 billion last year.”
Costco Wholesale Corp., press release

Results and growth drivers

Net sales rose 8.2 percent: Net sales were $65,978 million against $60,985 million a year earlier. The company reported the increase as 8.2 percent. Source
Net income and diluted EPS rose: Net income was $2,001 million, or $4.50 per diluted share, against $1,798 million, or $4.04 per diluted share, a year earlier. Source
Operating income was higher: Operating income was $2,463 million against $2,196 million. Interest expense was $35 million against $37 million. Source

Comparable sales by region

Total company comparables were 6.4%: Total company comparable sales were 6.4% both as reported and excluding gasoline price and foreign exchange effects. The first column is reported and the second adjusted. Source
U.S. and Canada comparables: U.S. comparable sales were 5.9%. Canada was 6.5% reported and 9.0% excluding gasoline price and foreign exchange effects. Source
Other International comparables: Other International comparable sales were 8.8% reported and 6.8% excluding gasoline price and foreign exchange effects. Source

“Net income for the quarter was $2,001 million, $4.50 per diluted share, compared to $1,798 million, $4.04 per diluted share, last year.”
Costco Wholesale Corp., press release

Digital channel and membership

Digitally-Enabled sales grew 20.5%: Digitally-Enabled comparable sales were 20.5%, the same reported and adjusted. The prior release reported e-commerce comparables of 13.6% for the 16-week fourth quarter. Source
Membership fees and total revenue: Membership fees were $1,329 million against $1,166 million. Total revenue was $67,307 million against $62,151 million. Source
E-commerce sites unchanged in list: The company lists e-commerce sites in eight countries. The list matches the eight countries in the prior release. Source

Costs, margins and tax

Merchandise and SG&A costs rose: Merchandise costs were $58,510 million against $54,109 million. Selling, general and administrative expense was $6,334 million against $5,846 million. Source
Stock-based compensation tax benefit: The tax benefit related to stock-based compensation was $72 million, or $0.16 per diluted share. Last year it was $100 million, or $0.22 per diluted share. Source
Diluted share count was lower: Diluted shares were 444,515 thousand against 444,891 thousand a year earlier. Basic EPS was $4.51 against $4.05. Source

Inventory, payables and cash

Merchandise inventories increased: Merchandise inventories were $21,141 million at November 23, 2025, against $18,116 million at August 31, 2025. Source
Accounts payable increased: Accounts payable were $23,513 million against $19,783 million at August 31, 2025. Source
Cash balance was higher: Cash and cash equivalents were $16,217 million against $14,161 million at August 31, 2025. Short-term investments were $966 million. Source
Long-term debt was lower: Long-term debt, excluding the current portion, was $5,666 million against $5,713 million at August 31, 2025. Source

Cash flow and capital returns

Operating cash flow was higher: Net cash provided by operating activities was $4,688 million against $3,260 million. Changes in working capital contributed $1,534 million against $451 million. Source
Capital spending increased: Additions to property and equipment were $1,526 million against $1,264 million a year earlier. Source
Buybacks and dividends paid: Repurchases of common stock were $210 million against $207 million. Cash dividend payments were $577 million against $515 million. Source
Tax withholdings on awards lower: Tax withholdings on stock-based awards were $357 million against $389 million a year earlier. Source

Warehouse network

Warehouse count rose to 923: The company operates 923 warehouses. The prior release reported 914 warehouses. Source
U.S. and Puerto Rico count: Warehouses in the United States and Puerto Rico numbered 633, against 629 in the prior release. Source
Canada and other country counts: Canada had 114 warehouses, against 110 in the prior release. Mexico had 42 and Japan had 37, unchanged in the prior release. Source

Figures management reported

Figure	Reported
Comparable sales, total company Source	6.4%
Comparable sales, U.S. Source	5.9%
Digitally-Enabled comparable sales Source	20.5%
Warehouses operated Source	923 (914 in prior release)
Merchandise inventories Source	$21,141 million

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

COSTCO WHOLESALE CORPORATION REPORTS FIRST QUARTER FISCAL YEAR 2026 OPERATING RESULTS

ISSAQUAH, Wash., December 11, 2025 - Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the first quarter of fiscal 2026 (twelve weeks), ended November 23, 2025.

Net sales for the first quarter increased 8.2 percent, to $65.98 billion, from $60.99 billion last year.

Comparable sales for the first quarter fiscal 2026 were as follows:

	12 Weeks	12 Weeks
		Adjusted*
U.S.	5.9%	5.9%
Canada	6.5%	9.0%
Other International	8.8%	6.8%
Total Company	6.4%	6.4%
Digitally-Enabled	20.5%	20.5%

*Excluding the impacts from changes in gasoline prices and foreign exchange.

Net income for the quarter was $2,001 million, $4.50 per diluted share, compared to $1,798 million, $4.04 per diluted share, last year. This year’s results included a tax benefit of $72 million, $0.16 per diluted share, related to stock-based compensation, which last year was $100 million, $0.22 per diluted share.

Costco currently operates 923 warehouses, including 633 in the United States and Puerto Rico, 114 in Canada, 42 in Mexico, 37 in Japan, 29 in the United Kingdom, 20 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, three in France, two in Sweden, and one each in Iceland, and New Zealand. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, December 11, 2025, and is available via a webcast on investor.costco.com (click “Events & Presentations”).

Forward-looking statements notice

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. In some cases forward-looking statements can be identified because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, inflation or deflation, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, breaches of security or privacy of member or business information, conditions affecting the acquisition, development, ownership or use of real estate, capital spending, actions of vendors, rising costs associated with employees (generally including health-care costs and wages), workforce interruptions, energy and certain commodities, geopolitical conditions (including tariffs), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to environmental and social matters, public-health related factors, and other risks identified from time to time in the Company’s public statements and reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and the Company does not undertake to update these statements, except as required by law. Comparable sales and comparable sales excluding impacts from changes in gasoline prices and foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with U.S. GAAP.

CONTACTS: Costco Wholesale Corporation

Josh Dahmen, 425/313-8254

Andrew Yoon, 425/313-6305

COST-Earn

COSTCO WHOLESALE CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(dollars in millions, except per share data) (unaudited)

	12 Weeks Ended
	November 23, 2025	November 24, 2024
REVENUE
Net sales	$65,978	$60,985
Membership fees	1,329	1,166
Total revenue	67,307	62,151
OPERATING EXPENSES
Merchandise costs	58,510	54,109
Selling, general and administrative	6,334	5,846
Operating income	2,463	2,196
OTHER INCOME (EXPENSE)
Interest expense	(35)	(37)
Interest income and other, net	155	147
INCOME BEFORE INCOME TAXES	2,583	2,306
Provision for income taxes	582	508
NET INCOME	$2,001	$1,798
NET INCOME PER COMMON SHARE:
Basic	$4.51	$4.05
Diluted	$4.50	$4.04
Shares used in calculation (000’s):
Basic	443,961	443,988
Diluted	444,515	444,891

COSTCO WHOLESALE CORPORATION

CONSOLIDATED BALANCE SHEETS

(amounts in millions, except par value and share data) (unaudited)

Subject to Reclassification

	November 23, 2025	August 31, 2025
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$16,217	$14,161
Short-term investments	966	1,123
Receivables, net	3,231	3,203
Merchandise inventories	21,141	18,116
Other current assets	1,856	1,777
Total current assets	43,411	38,380
OTHER ASSETS
Property and equipment, net	32,616	31,909
Operating lease right-of-use assets	2,730	2,725
Other long-term assets	4,033	4,085
TOTAL ASSETS	$82,790	$77,099
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$23,513	$19,783
Accrued salaries and benefits	5,172	5,205
Accrued member rewards	2,712	2,677
Deferred membership fees	2,990	2,854
Other current liabilities	7,418	6,589
Total current liabilities	41,805	37,108
OTHER LIABILITIES
Long-term debt, excluding current portion	5,666	5,713
Long-term operating lease liabilities	2,436	2,460
Other long-term liabilities	2,580	2,654
TOTAL LIABILITIES	52,487	47,935
COMMITMENTS AND CONTINGENCIES
EQUITY
Preferred stock $0.005 par value; 100,000,000 shares authorized; no shares issued and outstanding	-	-
Common stock $0.005 par value; 900,000,000 shares authorized; 443,919,000 and 443,237,000 shares issued and outstanding	2	2
Additional paid-in capital	8,408	8,282
Accumulated other comprehensive loss	(1,976)	(1,770)
Retained earnings	23,869	22,650
TOTAL EQUITY	30,303	29,164
TOTAL LIABILITIES AND EQUITY	$82,790	$77,099

COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in millions) (unaudited)

Subject to Reclassification

	12 Weeks Ended
	November 23, 2025	November 24, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$2,001	$1,798
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	597	548
Non-cash lease expense	75	72
Stock-based compensation	486	463
Other non-cash operating activities, net	(5)	(72)
Changes in working capital	1,534	451
Net cash provided by operating activities	4,688	3,260
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment	(1,526)	(1,264)
Purchases of short-term investments	(195)	(247)
Maturities of short-term investments	340	541
Other investing activities, net	(17)	(15)
Net cash used in investing activities	(1,398)	(985)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of short-term borrowings	-	(194)
Proceeds from short-term borrowings	-	133
Tax withholdings on stock-based awards	(357)	(389)
Repurchases of common stock	(210)	(207)
Cash dividend payments	(577)	(515)
Financing lease payments and other financing activities, net	(23)	(21)
Net cash used in financing activities	(1,167)	(1,193)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(67)	(81)
Net change in cash and cash equivalents	2,056	1,001
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR	14,161	9,906
CASH AND CASH EQUIVALENTS END OF PERIOD	$16,217	$10,907