Costco Wholesale Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 5 March 2026: press release. The quarter’s numbers.

Key takeaways

Quarter sales rose 9.1 percent: Net sales for the second quarter were $68.24 billion, up from $62.53 billion a year earlier. The 12-week quarter ended February 15, 2026. Source
Quarter net income and EPS rose: Second-quarter net income was $2,035 million, or $4.58 per diluted share, against $1,788 million and $4.02 a year earlier. Source
Other International comparables led: Other International comparable sales were 13.0 percent in the second quarter, 7.1 percent adjusted. Canada was 10.1 percent, 7.6 percent adjusted, and the U.S. was 5.9 percent, 6.4 percent adjusted. Source
Digitally-enabled comparables were 22.6 percent: Total company comparable sales were 7.4 percent, 6.7 percent adjusted, and Digitally-Enabled comparables were 22.6 percent, 21.7 percent adjusted, for the second quarter. Source
February net sales rose 9.5 percent: February net sales covered the four-week month ended March 1, 2026, at $21.69 billion, against $19.81 billion a year earlier. Source
Calendar shift lifted February international: The February calendar shift added about 4.0 percent to February Other International sales and about 0.5 percent to Total Company sales. Source
Operating cash flow rose over 24 weeks: Net cash from operating activities was $7,684 million for 24 weeks, against $6,008 million. Working capital changes contributed $1,587 million against $650 million. Source
Inventory higher than fiscal year-end: Merchandise inventories were $18,991 million at February 15, 2026, against $18,116 million at August 31, 2025. Source

“Lunar and Chinese New Years occurred on February 17, 19 days later this year.”
Costco Wholesale Corp., press release

Results and growth drivers

Quarter sales rose 9.1 percent: Net sales for the second quarter were $68.24 billion, up from $62.53 billion a year earlier. The 12-week quarter ended February 15, 2026. Source
Quarter net income and EPS rose: Second-quarter net income was $2,035 million, or $4.58 per diluted share, against $1,788 million and $4.02 a year earlier. Source
Year-to-date net income rose: For the first 24 weeks, net income was $4.04 billion, or $9.08 per diluted share, against $3.59 billion and $8.06 a year earlier. Source

Segments and regions

Other International comparables led: Other International comparable sales were 13.0 percent in the second quarter, 7.1 percent adjusted. Canada was 10.1 percent, 7.6 percent adjusted, and the U.S. was 5.9 percent, 6.4 percent adjusted. Source
February comparables by region: Over the four-week February month, comparables were 12.8 percent in Canada and 17.9 percent in Other International, against 9.3 and 10.9 percent adjusted. Source
First-quarter regional comparables were lower: In the first quarter, Other International comparable sales were 8.8 percent and Canada was 6.5 percent, with total company comparables at 6.4 percent.

“Net sales for the first 24 weeks increased 8.7 percent, to $134.22 billion, from $123.52 billion last year.”
Costco Wholesale Corp., press release

Products, members and digital

Digitally-enabled comparables were 22.6 percent: Total company comparable sales were 7.4 percent, 6.7 percent adjusted, and Digitally-Enabled comparables were 22.6 percent, 21.7 percent adjusted, for the second quarter. Source
Membership fees and total revenue rose: Membership fees were $1,355 million for the quarter against $1,193 million, and total revenue was $69,597 million against $63,723 million. Source
E-commerce sites in eight markets: The company also operates e-commerce sites in eight markets: the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia. Source

Costs, margins and operating income

Operating income rose in both periods: Operating income was $2,606 million for the quarter against $2,316 million, and $5,069 million for 24 weeks against $4,512 million. Source
Merchandise costs and SG&A increased: Merchandise costs were $60,719 million against $55,744 million, and selling, general and administrative expenses were $6,272 million against $5,663 million. Source
Tax provision for the quarter rose: The provision for income taxes was $686 million for the quarter, against $634 million a year earlier, and $1,268 million for 24 weeks. Source

Demand and sales timing

February net sales rose 9.5 percent: February net sales covered the four-week month ended March 1, 2026, at $21.69 billion, against $19.81 billion a year earlier. Source
Calendar shift lifted February international: The February calendar shift added about 4.0 percent to February Other International sales and about 0.5 percent to Total Company sales. Source
Net sales for 26 weeks rose: Net sales for the first 26 weeks were $144.85 billion, up 8.6 percent from $133.36 billion a year earlier. Source

Cash, capital and shareholder returns

Operating cash flow rose over 24 weeks: Net cash from operating activities was $7,684 million for 24 weeks, against $6,008 million. Working capital changes contributed $1,587 million against $650 million. Source
Capital spending rose over 24 weeks: Additions to property and equipment were $2,815 million for 24 weeks, against $2,401 million a year earlier. Source
Dividends and buybacks both rose: Cash dividend payments were $1,154 million for 24 weeks, against $515 million, and repurchases of common stock were $419 million against $412 million. Source
Cash balance higher than August: Cash and cash equivalents were $17,383 million at February 15, 2026, against $14,161 million at August 31, 2025. Source

Inventory, payables and debt

Inventory higher than fiscal year-end: Merchandise inventories were $18,991 million at February 15, 2026, against $18,116 million at August 31, 2025. Source
Inventory was higher at first-quarter end: Merchandise inventories were $21,141 million at November 23, 2025, the end of the first quarter.
Accounts payable higher than August: Accounts payable were $20,647 million at February 15, 2026, against $19,783 million at August 31, 2025. Source
Long-term debt little changed: Long-term debt, excluding current portion, was $5,688 million, against $5,713 million at August 31, 2025. Source

Figures management reported

Figure	Reported
Comparable sales, total company, 12 weeks Source	7.4% reported; 6.7% adjusted
Digitally-enabled comparable sales, 12 weeks Source	22.6% reported; 21.7% adjusted
Comparable sales, total company, February (4 weeks) Source	7.9% reported; 7.0% adjusted
Merchandise inventories Source	$18,991 million at February 15, 2026
Warehouses operated (store count) Source	924 total; 634 in U.S. and Puerto Rico

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 SECOND QUARTER AND YEAR-TO-DATE OPERATING RESULTS FOR FISCAL 2026 AND FEBRUARY SALES RESULTS

ISSAQUAH, Wash., March 5, 2026 - Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the second quarter (twelve weeks) and the first 24 weeks of fiscal 2026, ended February 15, 2026.

Net sales for the quarter increased 9.1 percent, to $68.24 billion, from $62.53 billion last year. Net sales for the first 24 weeks increased 8.7 percent, to $134.22 billion, from $123.52 billion last year.

Comparable sales for the second quarter and first 24 weeks of fiscal 2026 were as follows:

	12 Weeks	12 Weeks	24 Weeks	24 Weeks
		Adjusted*		Adjusted*
U.S.	5.9%	6.4%	5.9%	6.1%
Canada	10.1%	7.6%	8.3%	8.3%
Other International	13.0%	7.1%	11.0%	7.0%
Total Company	7.4%	6.7%	6.9%	6.5%
Digitally-Enabled	22.6%	21.7%	21.6%	21.2%

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

Net income for the quarter was $2,035 million, $4.58 per diluted share, compared to $1,788 million, $4.02 per diluted share, last year. Net income for the first 24 weeks was $4.04 billion, $9.08 per diluted share, compared to $3.59 billion, $8.06 per diluted share, last year.

For the four-week reporting month of February, ended March 1, 2026, the Company reported net sales of $21.69 billion, an increase of 9.5 percent from $19.81 billion last year. Net sales for the first 26 weeks were $144.85 billion, an increase of 8.6 percent from $133.36 billion last year.

Comparable sales for the February and year-to-date periods ended March 1, 2026, were as follows:

	4 Weeks	4 Weeks	26 Weeks	26 Weeks
		Adjusted*		Adjusted*
U.S.	5.2%	6.0%	5.8%	6.1%
Canada	12.8%	9.3%	8.5%	8.2%
Other International	17.9%	10.9%	10.7%	6.6%
Total Company	7.9%	7.0%	6.8%	6.4%
Digitally-Enabled	21.8%	20.8%	21.8%	21.3%

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

Lunar and Chinese New Years occurred on February 17, 19 days later this year. The shift positively impacted February Other International and Total Company sales by approximately 4.0% and 0.5%, respectively.

Costco currently operates 924 warehouses, including 634 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, March 5, 2026, and is available via a webcast on investor.costco.com (click on “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

COST-Sales

COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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

	12 Weeks Ended		24 Weeks Ended
	February 15, 2026	February 16, 2025	February 15, 2026	February 16, 2025
REVENUE
Net sales	$68,242	$62,530	$134,220	$123,515
Membership fees	1,355	1,193	2,684	2,359
Total revenue	69,597	63,723	136,904	125,874
OPERATING EXPENSES
Merchandise costs	60,719	55,744	119,229	109,853
Selling, general and administrative	6,272	5,663	12,606	11,509
Operating income	2,606	2,316	5,069	4,512
OTHER INCOME (EXPENSE)
Interest expense	(33)	(36)	(68)	(73)
Interest income and other, net	148	142	303	289
INCOME BEFORE INCOME TAXES	2,721	2,422	5,304	4,728
Provision for income taxes	686	634	1,268	1,142
NET INCOME	$2,035	$1,788	$4,036	$3,586
NET INCOME PER COMMON SHARE:
Basic	$4.58	$4.03	$9.09	$8.08
Diluted	$4.58	$4.02	$9.08	$8.06
Shares used in calculation (000s):
Basic	443,946	443,982	443,954	443,985
Diluted	444,420	444,886	444,468	444,888

COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

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

Subject to Reclassification

	February 15, 2026	August 31, 2025
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$17,383	$14,161
Short-term investments	857	1,123
Receivables, net	3,782	3,203
Merchandise inventories	18,991	18,116
Other current assets	2,120	1,777
Total current assets	43,133	38,380
OTHER ASSETS
Property and equipment, net	33,645	31,909
Operating lease right-of-use assets	2,759	2,725
Other long-term assets	4,102	4,085
TOTAL ASSETS	$83,639	$77,099
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$20,647	$19,783
Accrued salaries and benefits	5,635	5,205
Accrued member rewards	2,833	2,677
Deferred membership fees	3,126	2,854
Other current liabilities	8,522	6,589
Total current liabilities	40,763	37,108
OTHER LIABILITIES
Long-term debt, excluding current portion	5,688	5,713
Long-term operating lease liabilities	2,477	2,460
Other long-term liabilities	2,624	2,654
TOTAL LIABILITIES	51,552	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; 443,692,000 and 443,237,000 shares issued and outstanding	2	2
Additional paid-in capital	8,570	8,282
Accumulated other comprehensive loss	(1,606)	(1,770)
Retained earnings	25,121	22,650
TOTAL EQUITY	32,087	29,164
TOTAL LIABILITIES AND EQUITY	$83,639	$77,099

COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in millions) (unaudited)

Subject to Reclassification

	24 Weeks Ended
	February 15, 2026	February 16, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$4,036	$3,586
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,194	1,100
Non-cash lease expense	149	137
Stock-based compensation	652	614
Other non-cash operating activities, net	66	(79)
Changes in working capital	1,587	650
Net cash provided by operating activities	7,684	6,008
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment	(2,815)	(2,401)
Purchases of short-term investments	(250)	(345)
Maturities of short-term investments	510	752
Other investing activities, net	(13)	(13)
Net cash used in investing activities	(2,568)	(2,007)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of short-term borrowings	(65)	(389)
Proceeds from short-term borrowings	136	370
Tax withholdings on stock-based awards	(358)	(390)
Repurchases of common stock	(419)	(412)
Cash dividend payments	(1,154)	(515)
Financing lease payments and other financing activities, net	(37)	(98)
Net cash used in financing activities	(1,897)	(1,434)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	3	(117)
Net change in cash and cash equivalents	3,222	2,450
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR	14,161	9,906
CASH AND CASH EQUIVALENTS END OF PERIOD	$17,383	$12,356