Costco reports Q4 revenue of $95.7B as adjusted EPS of $6.60 beats estimates
Total revenue grew 11.1% in the 16-week fourth quarter, supported by a 9.4% increase in total company comparable sales and rising membership fees.
What they reported
- Total revenue for the fourth quarter rose to $95.723 billion, up from $86.156 billion in the same period last year.
- Net income for the quarter reached $2.998 billion, or $6.75 per diluted share, up from $2.610 billion, or $5.87 per diluted share, last year.
- Membership fees increased to $1.850 billion, compared to $1.724 billion in the prior-year quarter.
- Total company comparable sales grew 9.4% (6.7% when adjusted for gasoline prices and foreign exchange), while digitally-enabled sales increased 19.5%.
Against the forecast and a year ago
- Adjusted EPS of $6.60 beat the analyst forecast of $6.48.
- The difference between GAAP diluted EPS ($6.75) and the adjusted EPS ($6.60) is due to a $0.15 per share non-recurring benefit from tariff refunds.
- For the full fiscal year, net income rose to $9.226 billion ($20.76 per diluted share) from $8.099 billion ($18.21 per diluted share) in fiscal 2025.
What management said
Management noted that fourth-quarter net income was positively impacted by a non-recurring benefit of $0.15 per diluted share from IEEPA tariff refunds received in the quarter, which was partially offset by reinvestments into increased member values.
What to watch next
- The expansion of Costco's global warehouse footprint, which currently stands at 939 locations, including 647 in the United States and Puerto Rico.
- The sustained momentum of digitally-enabled sales, which grew 20.9% over the full fiscal year.
- Capital allocation and liquidity, with cash and cash equivalents rising to $20.207 billion and full-year capital expenditures increasing to $6.435 billion.