Costco Wholesale Corporation Reports Robust Q2 and Year-to-Date Fiscal 2026 Results

Key Highlights from Q2 and Year-to-Date 2026 Financial Results

• Net Sales Surge: For the second quarter ended February 15, 2026, Costco reported net sales of \$68.24 billion, up 9.1% from \$62.53 billion in the prior year. For the first 24 weeks of fiscal 2026, net sales increased 8.7% to \$134.22 billion from \$123.52 billion a year earlier.
• Comparable Sales Growth: Company-wide comparable sales for the quarter rose 7.4% (6.7% adjusted for gasoline price and forex effects). For the first 24 weeks, comparable sales were up 6.9% (6.5% adjusted). U.S. comps increased 5.9% (6.4% adjusted), with Canada and Other International regions growing even faster, especially Other International at 13.0% (7.1% adjusted).
• Digitally-Enabled Sales: Online and digitally-enabled sales soared, up 22.6% in Q2 and 21.6% year-to-date (21.7% and 21.2% adjusted, respectively), underscoring strong digital momentum.
• Net Income and EPS: Quarterly net income was \$2.035 billion (\$4.58 per diluted share), a significant increase from \$1.788 billion (\$4.02 per diluted share) last year. For the first 24 weeks, net income was \$4.04 billion (\$9.08 per diluted share), up from \$3.59 billion (\$8.06 per diluted share).
• February 2026 Sales: For the four-week reporting month ended March 1, 2026, net sales reached \$21.69 billion, a 9.5% increase over last year. Comparable sales for this period rose 7.9% (7.0% adjusted).
• Warehouse Footprint: Costco now operates 924 warehouses globally, including 634 in the U.S. and Puerto Rico, 114 in Canada, with a notable presence across Mexico, Japan, the U.K., Korea, Australia, Taiwan, China, Spain, France, Sweden, Iceland, and New Zealand. E-commerce sites span most major regions.

Details Investors Need to Know

• Membership Fee Income: Membership revenue increased meaningfully to \$1.375 billion for the quarter and \$2.684 billion for the first 24 weeks, highlighting continued loyalty and member growth.
• Operating Efficiency: Total operating income for Q2 was \$2.606 billion (up from \$2.316 billion last year), driven by higher sales and expense control.
• Strong Balance Sheet: Costco ended the quarter with \$17.38 billion in cash and cash equivalents, up from \$14.16 billion at fiscal year-end. Merchandise inventories stood at \$18.99 billion versus \$15.16 billion previously, reflecting proactive inventory management for growth and demand.
• Shareholder Returns: During the 24 weeks, Costco repurchased \$419 million of its own stock and paid \$1.154 billion in dividends, demonstrating ongoing commitment to returning capital to shareholders.
• Impact of Calendar Shifts: The timing of Lunar/Chinese New Year—occurring 19 days later this year—boosted February Other International and Total Company sales by approximately 4.0% and 0.5%, respectively, a notable one-time benefit.
• Risks and Forward-Looking Statements: Costco highlighted standard business risks, including economic conditions, exchange rates, inflation, competition, regulatory changes, consumer spending, and other factors that could impact future performance.

Why This is Important for Shareholders

• Consistent Growth: The company continues to deliver solid top- and bottom-line growth across all regions, with especially strong gains in international markets and digital channels. This momentum could positively influence the share price.
• Strong Cash Position: The increased cash reserves provide flexibility for further expansion, acquisitions, or additional shareholder returns.
• Resilient Business Model: Even in a dynamic market, Costco’s membership-based model and focus on value are driving results, improving investor confidence.
• Digital Transformation: The acceleration in digitally-enabled sales shows that Costco’s investments in e-commerce are paying off, positioning it well against competitors.
• Calendar-Driven Sales Boost: Investors should note that some of the reported sales growth, especially internationally, was temporarily boosted by the timing of Lunar New Year, suggesting a possible normalization in future periods.

Summary Financials (Selected)

Outlook and Conference Call

Costco will hold a conference call to discuss these results at 2:00 p.m. PT on March 5, 2026, accessible via webcast at investor.costco.com. Investors are encouraged to monitor forward-looking statements for updates, as the company highlights that risks related to macroeconomic conditions, competition, and regulatory factors can impact future performance.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Forward-looking statements are subject to risks and uncertainties which may cause actual results to differ materially from those anticipated. Investors should consult the company’s filings with the SEC and their financial advisors before making investment decisions.

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