Costco Wholesale Corp.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 28 May 2026: press release. The quarter’s numbers.

Key takeaways

Quarterly net sales rose 11.6%: Net sales for the twelve weeks were $69.15 billion, up from $61.96 billion. For the first 36 weeks, net sales were $203.37 billion, up 9.6 percent. Source
Quarterly diluted EPS was $4.93: Net income for the twelve weeks was $2.19 billion, or $4.93 per diluted share, against $1.90 billion, or $4.28 per diluted share, a year earlier. Source
Other International comparables up 11.2%: Other International comparable sales rose 11.2% for the twelve weeks, or 5.9% adjusted, and 11.0% for 36 weeks, or 6.6% adjusted. Source
Membership fees rose to $1,373 million: Membership fees were $1,373 million for the twelve weeks, against $1,240 million, and $4,057 million for 36 weeks, against $3,599 million. Source
Quarterly operating income rose: Operating income was $2,815 million for the twelve weeks, against $2,530 million last year, and $7,884 million for 36 weeks, against $7,042 million. Source
Operating cash flow rose: Net cash provided by operating activities was $11,133 million for 36 weeks, against $9,468 million. Changes in working capital contributed $2,086 million, against $1,414 million. Source
Capital spending rose: Additions to property and equipment were $4,228 million for 36 weeks, against $3,532 million. Property and equipment, net, was $34,293 million, against $31,909 million at August 31, 2025. Source
Warehouses rose to 931: The company operates 931 warehouses, up from 924 in the second-quarter release. The count includes 639 in the United States and Puerto Rico, against 634 previously. Source

“Net sales for the quarter increased 11.6 percent, to $69.15 billion, from $61.96 billion last year.”
Costco Wholesale Corp., press release

What changed from last quarter

New: The e-commerce site list now includes China. The second-quarter release listed sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia. Source

Results and growth drivers

Quarterly net sales rose 11.6%: Net sales for the twelve weeks were $69.15 billion, up from $61.96 billion. For the first 36 weeks, net sales were $203.37 billion, up 9.6 percent. Source
Quarterly diluted EPS was $4.93: Net income for the twelve weeks was $2.19 billion, or $4.93 per diluted share, against $1.90 billion, or $4.28 per diluted share, a year earlier. Source
Year-to-date net income rose: Net income for the first 36 weeks was $6.23 billion, or $14.01 per diluted share, against $5.49 billion and $12.34 a year earlier. Source

Comparable sales by region

U.S. and Canada comparable sales rose: U.S. comparable sales rose 9.4% for the twelve weeks, or 6.8% excluding gasoline prices and foreign exchange. Canada rose 10.7%, or 6.2% on the same adjusted basis. Source
Other International comparables up 11.2%: Other International comparable sales rose 11.2% for the twelve weeks, or 5.9% adjusted, and 11.0% for 36 weeks, or 6.6% adjusted. Source
Digitally-enabled comparables rose 21.5%: Digitally-enabled comparable sales rose 21.5% for the twelve weeks, or 20.8% adjusted, and 21.6% for 36 weeks, or 21.1% adjusted. Source

“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.”
Costco Wholesale Corp., press release

Membership fees and other income

Membership fees rose to $1,373 million: Membership fees were $1,373 million for the twelve weeks, against $1,240 million, and $4,057 million for 36 weeks, against $3,599 million. Source
Total revenue for the quarter: Total revenue was $70,527 million for the twelve weeks, against $63,205 million last year. Total revenue for 36 weeks was $207,431 million. Source
Interest income and other rose: Interest income and other, net, was $155 million for the twelve weeks, against $85 million, and $458 million for 36 weeks, against $374 million. Source

Costs and operating income

Merchandise costs rose: Merchandise costs were $61,519 million for the twelve weeks, against $54,996 million, and $180,748 million for 36 weeks, against $164,849 million. Source
Selling, general and administrative expense rose: Selling, general and administrative expense was $6,193 million for the twelve weeks, against $5,679 million, and $18,799 million for 36 weeks, against $17,188 million. Source
Quarterly operating income rose: Operating income was $2,815 million for the twelve weeks, against $2,530 million last year, and $7,884 million for 36 weeks, against $7,042 million. Source

Cash flow and capital spending

Operating cash flow rose: Net cash provided by operating activities was $11,133 million for 36 weeks, against $9,468 million. Changes in working capital contributed $2,086 million, against $1,414 million. Source
Capital spending rose: Additions to property and equipment were $4,228 million for 36 weeks, against $3,532 million. Property and equipment, net, was $34,293 million, against $31,909 million at August 31, 2025. Source
Cash balance increased: Cash and cash equivalents were $18,946 million at May 10, 2026, against $14,161 million at August 31, 2025. Short-term investments were $1,050 million. Source

Shareholder returns and balance sheet

Cash dividends rose: Cash dividend payments were $1,154 million for 36 weeks, against $1,030 million in the prior-year period. Source
Share repurchases slightly lower: Repurchases of common stock were $603 million for 36 weeks, against $623 million last year. Tax withholdings on stock-based awards were $361 million. Source
Inventories rose: Merchandise inventories were $19,418 million at May 10, 2026, against $18,116 million at August 31, 2025. Source
Long-term debt little changed: Long-term debt, excluding current portion, was $5,670 million, against $5,713 million at August 31, 2025. Total equity was $33,509 million. Source

Warehouse network

Warehouses rose to 931: The company operates 931 warehouses, up from 924 in the second-quarter release. The count includes 639 in the United States and Puerto Rico, against 634 previously. Source
Canada and Mexico each added one: Canada has 115 warehouses, against 114 in the second-quarter release. Mexico has 43, against 42. Source
Warehouses span 14 countries: The list runs from the United States, with Puerto Rico, through Europe and Asia-Pacific markets. Sweden has two warehouses; Iceland and New Zealand have one each. Source

Figures management reported

Figure	Reported
Comparable sales, total company (twelve weeks) Source	9.8% (6.6% excluding gasoline prices and foreign exchange)
Comparable sales, digitally-enabled (twelve weeks) Source	21.5% (20.8% adjusted)
Merchandise inventories Source	$19,418 million at May 10, 2026
Warehouses in operation Source	931, up from 924 in the second-quarter release

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 THIRD QUARTER AND YEAR-TO-DATE OPERATING RESULTS FOR FISCAL 2026

ISSAQUAH, Wash., May 28, 2026 - Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the third quarter (twelve weeks) and the first 36 weeks of fiscal 2026, ended May 10, 2026.

Net sales for the quarter increased 11.6 percent, to $69.15 billion, from $61.96 billion last year. Net sales for the first 36 weeks increased 9.6 percent, to $203.37 billion, from $185.48 billion last year.

Comparable sales for the third quarter and first 36 weeks of fiscal 2026 were as follows:

	12 Weeks	12 Weeks	36 Weeks	36 Weeks
		Adjusted*		Adjusted*
U.S.	9.4%	6.8%	7.1%	6.4%
Canada	10.7%	6.2%	9.1%	7.6%
Other International	11.2%	5.9%	11.0%	6.6%
Total Company	9.8%	6.6%	7.9%	6.6%
Digitally-Enabled	21.5%	20.8%	21.6%	21.1%

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

Net income for the quarter was $2.19 billion, $4.93 per diluted share, compared to $1.90 billion, $4.28 per diluted share, last year. Net income for the first 36 weeks was $6.23 billion, $14.01 per diluted share, compared to $5.49 billion, $12.34 per diluted share, last year.

Costco currently operates 931 warehouses, including 639 in the United States and Puerto Rico, 115 in Canada, 43 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, Australia, and China.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, May 28, 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 and global conflicts), 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

Bryan Starnes, 425/427-7403

COST-Earn

COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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

	12 Weeks Ended		36 Weeks Ended
	May 10, 2026	May 11, 2025	May 10, 2026	May 11, 2025
REVENUE
Net sales	$69,154	$61,965	$203,374	$185,480
Membership fees	1,373	1,240	4,057	3,599
Total revenue	70,527	63,205	207,431	189,079
OPERATING EXPENSES
Merchandise costs	61,519	54,996	180,748	164,849
Selling, general and administrative	6,193	5,679	18,799	17,188
Operating income	2,815	2,530	7,884	7,042
OTHER INCOME (EXPENSE)
Interest expense	(32)	(35)	(100)	(108)
Interest income and other, net	155	85	458	374
INCOME BEFORE INCOME TAXES	2,938	2,580	8,242	7,308
Provision for income taxes	746	677	2,014	1,819
NET INCOME	$2,192	$1,903	$6,228	$5,489
NET INCOME PER COMMON SHARE:
Basic	$4.94	$4.29	$14.03	$12.36
Diluted	$4.93	$4.28	$14.01	$12.34
Shares used in calculation (000s):
Basic	443,923	443,958	443,943	443,976
Diluted	444,430	444,762	444,455	444,846

COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

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

Subject to Reclassification

	May 10, 2026	August 31, 2025
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$18,946	$14,161
Short-term investments	1,050	1,123
Receivables, net	3,750	3,203
Merchandise inventories	19,418	18,116
Other current assets	2,013	1,777
Total current assets	45,177	38,380
OTHER ASSETS
Property and equipment, net	34,293	31,909
Operating lease right-of-use assets	2,747	2,725
Other long-term assets	4,213	4,085
TOTAL ASSETS	$86,430	$77,099
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$22,363	$19,783
Accrued salaries and benefits	5,218	5,205
Accrued member rewards	2,948	2,677
Deferred membership fees	3,157	2,854
Other current liabilities	8,439	6,589
Total current liabilities	42,125	37,108
OTHER LIABILITIES
Long-term debt, excluding current portion	5,670	5,713
Long-term operating lease liabilities	2,466	2,460
Other long-term liabilities	2,660	2,654
TOTAL LIABILITIES	52,921	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; 443,514,000 and 443,237,000 shares issued and outstanding	2	2
Additional paid-in capital	8,683	8,282
Accumulated other comprehensive loss	(1,658)	(1,770)
Retained earnings	26,482	22,650
TOTAL EQUITY	33,509	29,164
TOTAL LIABILITIES AND EQUITY	$86,430	$77,099

COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in millions) (unaudited)

Subject to Reclassification

	36 Weeks Ended
	May 10, 2026	May 11, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$6,228	$5,489
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,791	1,652
Non-cash lease expense	221	208
Stock-based compensation	771	720
Other non-cash operating activities, net	36	(15)
Changes in working capital	2,086	1,414
Net cash provided by operating activities	11,133	9,468
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment	(4,228)	(3,532)
Purchases of short-term investments	(480)	(573)
Maturities of short-term investments	544	786
Other investing activities, net	4	(24)
Net cash used in investing activities	(4,160)	(3,343)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of short-term borrowings	(390)	(635)
Proceeds from short-term borrowings	459	616
Repayments of long-term debt	(69)	-
Tax withholdings on stock-based awards	(361)	(392)
Repurchases of common stock	(603)	(623)
Cash dividend payments	(1,154)	(1,030)
Financing lease payments and other financing activities, net	(57)	(118)
Net cash used in financing activities	(2,175)	(2,182)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(13)	(13)
Net change in cash and cash equivalents	4,785	3,930
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR	14,161	9,906
CASH AND CASH EQUIVALENTS END OF PERIOD	$18,946	$13,836