Costco Reports 12% Revenue Growth to $70.5 Billion in Q3 Fiscal 2026

Costco Wholesale Corporation reported strong financial performance for the third quarter of fiscal 2026, ending May 10, 2026. The company achieved total revenue of $70.5 billion, a 12% increase from $63.2 billion in the same quarter of the previous year. This growth was driven by a 12% rise in net sales, which reached $69.2 billion, and an 11% increase in membership fees, totaling $1.4 billion. Net income for the quarter rose to $2.2 billion, or $4.93 per diluted share, compared to $1.9 billion, or $4.28 per diluted share, in the prior year.

In comparison to the previous fiscal period, Costco's financial results showed significant improvements. For the first thirty-six weeks of fiscal 2026, total revenue increased to $207.4 billion from $189.1 billion, marking a 10% growth. Net income for the same period rose to $6.2 billion from $5.5 billion, reflecting a similar upward trend in profitability. The company attributed these results to increased comparable sales, which grew by 10% in the third quarter, and the opening of 23 new warehouses since the end of the previous fiscal year.

Operationally, Costco continued to expand its footprint, operating 928 warehouses worldwide as of May 10, 2026, including 637 in the United States. The company opened four new warehouses during the quarter, three in the U.S. and one in Canada. Membership growth was also notable, with total paid members reaching 82.9 million, up from 79.6 million a year earlier. The renewal rate for memberships remained strong at 92.2% in the U.S. and Canada, although it was slightly impacted by a higher number of memberships sold online.

Costco's strategic focus on maintaining low prices and high sales volumes contributed to its financial success. The company reported a gross margin of $7.6 billion for the quarter, with a gross margin percentage of 11.04%, slightly down from 11.25% in the previous year. Selling, general, and administrative expenses as a percentage of net sales decreased to 8.96%, down from 9.16%, indicating improved operational efficiency. The company also experienced a positive impact from higher gasoline prices, which contributed approximately $1.4 billion to net sales.

Looking ahead, Costco plans to continue its expansion strategy, with 13 additional new warehouses expected to open in the remainder of fiscal 2026. The company remains optimistic about its growth prospects, driven by strong membership engagement and a focus on providing value to its customers. Costco's management emphasized the importance of adapting to market conditions and maintaining competitive pricing to sustain its profitability in the face of economic fluctuations.