Costco Reports 8% Revenue Growth to $67.3 Billion in Q1 Fiscal 2026

Costco Wholesale Corporation reported strong financial performance for the first quarter of fiscal 2026, ending November 23, 2025. The company achieved total revenue of $67.3 billion, a notable increase of 8% from $62.2 billion in the same period last year. This growth was driven by a combination of higher net sales, which rose to $66.0 billion from $61.0 billion, and an increase in membership fees, which climbed to $1.3 billion from $1.2 billion. Net income also saw an increase, reaching $2.0 billion, or $4.50 per diluted share, compared to $1.8 billion, or $4.04 per diluted share, in the prior year.

In terms of operational metrics, Costco's total paid members increased to 81.4 million, up from 77.4 million a year earlier, while total cardholders rose to 145.9 million from 138.8 million. The company opened eight new warehouses during the quarter, contributing to a total of 921 locations worldwide. This expansion included four new warehouses in the U.S., two in Canada, and one in the Other International segment. The company reported a 6% increase in comparable sales, with notable growth in both the U.S. and Canada, which saw increases of 6% and 7%, respectively.

Costco's gross margin as a percentage of net sales improved slightly to 11.32%, up from 11.28% in the previous year. This increase was attributed to better performance in warehouse ancillary and other businesses, particularly in pharmacy and hearing aids. Selling, general, and administrative (SG&A) expenses also increased to $6.3 billion, representing 9.60% of net sales, a marginal rise from 9.59% in the prior year. The effective tax rate for the quarter was 22.5%, compared to 22.0% in the previous year.

Looking ahead, Costco plans to continue its expansion strategy, with expectations to open an additional 25 new warehouses in fiscal 2026. The company remains focused on maintaining its competitive pricing strategy and enhancing member loyalty through its membership format, which is integral to its profitability. Costco's management expressed confidence in its ability to adapt to market conditions and consumer preferences, aiming to sustain growth in both net sales and membership revenue. The company also highlighted its commitment to controlling costs while investing in its workforce to enhance employee satisfaction and productivity.