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Wednesday 21 October 2026 Export COST’s income statement to Excel — free account

Costco Wholesale Corporation

COST Consumer Defensive Discount Stores

Costco Wholesale Corporation’s revenue for fiscal 2026 (year ended August 2026) was $303.2 billion, up 10.1% from fiscal 2025. In the quarter to August 2026, revenue grew 11.1%, EPS grew 14.8%, free cash flow grew 30.7% and total debt rose 6.46%, each against the same quarter a year earlier. Member of the S&P 500 and Nasdaq 100; revenue growth for ten consecutive years, operating cash flow growth for three.

997.10 2.49 +0.25%
Market cap
$440.7B
P/E
47.7×
Fwd P/E
43.4×
Dividend yield
0.71%
F-score
7/9
Altman Z
9.04
Beneish M
−2.66
Dividend safety
80/100
Overview Business Profile Financial Analysis Income Statement Balance Sheet Cash Flow Metrics & Ratios Filings 10-Q 10-K

Costco Wholesale Corporation (COST) Financial Analysis

Updated · Covers results through Q4 FY2026 · Sources · How this is made

Snapshot

Costco generated $303.2 billion of revenue, $38.9 billion of gross profit, $11.7 billion of operating income, and $9.2 billion of net income in FY2026. Market capitalisation was $415.4 billion as of October 6, 2026.

In Q4 FY2026, revenue was $95.7 billion, gross profit was $12.2 billion, operating income was $3.8 billion, and net income was $3.0 billion. Diluted EPS was $6.75 in Q4 FY2026. Gross margin was 12.7% in Q4 FY2026 and operating margin was 3.97% in Q4 FY2026.

Management attributes FY2026 net-sales growth primarily to higher comparable sales and sales at new warehouses.

Growth

Revenue reached $303.2 billion in FY2026, with growth of 10.1% in FY2026 against FY2025. Revenue compound annual growth was 7.76% in FY2023–FY2026 and 9.12% in FY2021–FY2026. Diluted EPS was $20.76 in FY2026, increasing 14.0% in FY2026 against FY2025; its compound annual growth was 13.6% in FY2023–FY2026 and 13.0% in FY2021–FY2026.

Free cash flow was $9.4 billion in FY2026, up 19.8% in FY2026 against FY2025. Free-cash-flow compound annual growth was 11.7% in FY2023–FY2026 and 11.8% in FY2021–FY2026.

In Q4 FY2026, revenue was $95.7 billion, diluted EPS was $6.75, and free cash flow was $2.5 billion. Revenue increased 11.1%, diluted EPS increased 15.0%, and free cash flow increased 30.7% in Q4 FY2026 against Q4 FY2025.

Profitability

Gross margin was 12.8% in FY2026, unchanged by 0.0 percentage points in FY2025–FY2026 and lower by −0.1 percentage points in FY2021–FY2026. Operating margin was 3.85% in FY2026, higher by 0.1 percentage points in FY2025–FY2026 and by 0.4 percentage points in FY2021–FY2026. Pre-tax margin was 4.04% in FY2026, higher by 0.1 percentage points in FY2025–FY2026 and by 0.6 percentage points in FY2021–FY2026. Net margin was 3.04% in FY2026, higher by 0.1 percentage points in FY2025–FY2026 and by 0.5 percentage points in FY2021–FY2026.

Return on equity was 28.4% in FY2026, below 30.7% in FY2025. Return on assets was 11.1% in FY2026, above 11.0% in FY2025. Return on invested capital was 35.3% in FY2026, above 33.1% in FY2025.

Balance sheet

Cash and short-term investments were $21.3 billion in FY2026, compared with $15.3 billion in FY2025. Total debt was $6.2 billion in FY2026, compared with $5.7 billion in FY2025, while net debt was −$15.1 billion in FY2026, compared with −$9.6 billion in FY2025.

Shareholders’ equity was $35.8 billion in FY2026, up from $29.2 billion in FY2025, and book value per share was $80.65 in FY2026, up from $65.69 in FY2025. Working capital was $2.6 billion in FY2026, compared with $1.3 billion in FY2025.

The current ratio was 1.1× in Q4 FY2026, and debt to equity was 0.2× in Q4 FY2026. Management reported that no short-term borrowings were outstanding at the end of FY2026.

Cash flow & capital return

Operating cash flow was $15.8 billion in FY2026, increasing 18.7% in FY2026 against FY2025. Management attributes the increase in FY2026 to higher operating income and reduced net investment in merchandise inventories, reflecting faster inventory turns and improved supplier payment terms. Capital expenditure was $6.4 billion in FY2026, compared with $5.5 billion in FY2025. Free cash flow was $9.4 billion in FY2026 and represented 101.8% of net income in FY2026.

Dividends paid were $2.5 billion in FY2026, while net share repurchases were $848.0 million in FY2026. Capital returned to shareholders was $3.3 billion in FY2026 and $20.2 billion in FY2022–FY2026. Weighted average shares were 444.0 million shares in FY2026; the share count changed 0.19% in FY2021–FY2026.

Valuation

As of October 6, 2026, P/E was 45.0×, below the 45.4× five-year median over the five fiscal years to FY2026 and above the 39.3× ten-year median over the ten fiscal years to FY2026. P/E was higher than the 20.1× industry median as of October 6, 2026.

As of October 6, 2026, P/S was 1.4×, equal to the 1.4× five-year median over the five fiscal years to FY2026 and above the 1.0× ten-year median over the ten fiscal years to FY2026. P/S was higher than the 1.1× industry median as of October 6, 2026. P/B was 11.6× as of October 6, 2026, below the 11.7× five-year median and above the 10.4× ten-year median; it was higher than the 5.5× industry median as of October 6, 2026. EV/Sales was 1.3× as of October 6, 2026, equal to its 1.3× five-year median and higher than its 1.0× ten-year and industry medians.

What changed since last quarter

Revenue was $95.7 billion in Q4 FY2026, up 35.7% in Q4 FY2026 against Q3 FY2026 and up 11.1% in Q4 FY2026 against Q4 FY2025. Diluted EPS was $6.75 in Q4 FY2026, up 36.9% sequentially and 15.0% from a year earlier. Free cash flow was $2.5 billion in Q4 FY2026, up 22.1% sequentially and 30.7% from a year earlier.

Gross margin was 12.7% in Q4 FY2026, unchanged sequentially and lower by −0.2 percentage points from a year earlier. Operating margin was 3.97% in Q4 FY2026, unchanged sequentially and higher by 0.1 percentage points from a year earlier. Net debt was −$15.1 billion in Q4 FY2026, changing by −$813.0 million sequentially and by −$5.6 billion from a year earlier. Management attributes FY2026 sales growth primarily to comparable sales and new warehouses, with higher gasoline prices also contributing to net sales.

Open questions

  • How durable are the sales and margin effects associated with gasoline prices and the mix of ancillary businesses?
  • How will additional warehouse openings affect membership growth, renewal rates, and sales in existing markets?
  • What portion of future tariff refunds, if any, will be retained versus invested in lower prices for members?
  • How will capital expenditure evolve relative to operating cash flow and free cash flow?

Sources

This page is for information only. It is not investment advice, a recommendation or an offer to buy or sell any security. Figures come from the sources listed above and may contain errors; verify against the company's filings.