Costco Wholesale Corporation reported strong financial results for the second quarter of fiscal 2026, ending February 15, 2026, with total revenue reaching $69.6 billion, a 9% increase from $63.7 billion in the same period last year. This growth was driven by a 9% rise in net sales, which amounted to $68.2 billion, and a 14% increase in membership fees, totaling $1.4 billion. The company's net income also saw a significant increase, rising to $2.0 billion, or $4.58 per diluted share, compared to $1.8 billion, or $4.02 per diluted share, in the prior year.
In terms of operational performance, Costco's membership base expanded, with total paid members increasing to 82.1 million from 78.4 million year-over-year. The company opened four new warehouses during the quarter, contributing to a total of 924 locations worldwide, including 634 in the U.S. The increase in customer engagement was reflected in a 7% rise in comparable sales, which was bolstered by a 4% increase in average ticket size and a 3% increase in shopping frequency.
Costco's gross margin as a percentage of net sales improved to 11.02%, up from 10.85% in the previous year, despite challenges such as gasoline price deflation. The company reported that its selling, general, and administrative (SG&A) expenses increased to $6.3 billion, representing 9.19% of net sales, slightly higher than the previous year's 9.06%. The effective tax rate for the quarter was 25.2%, down from 26.2% in the prior year.
The company’s balance sheet showed total assets of $83.6 billion, up from $77.1 billion at the end of the previous fiscal year. Cash and cash equivalents increased to $17.4 billion, compared to $14.2 billion at the end of August 2025. Costco's long-term debt remained stable at $5.7 billion, reflecting the company's strong liquidity position. The company also declared a quarterly cash dividend of $1.30 per share, which was paid on February 13, 2026.
Looking ahead, Costco plans to continue its expansion strategy, with plans to open 21 additional warehouses in the remainder of fiscal 2026. The company remains focused on enhancing its membership offerings and improving customer experience, which it believes will drive future growth. Management expressed confidence in maintaining strong sales momentum, despite potential challenges from economic conditions and competitive pressures.
About COSTCO WHOLESALE CORP /NEW
Costco Wholesale operates membership-based warehouses offering high-quality, low-priced products across food, non-food, and ancillary categories. Its core business model emphasizes volume purchasing, efficient distribution, and private-label Kirkland Signature products. Serving global markets, Costco combines in-store and e-commerce channels to deliver value, convenience, and member loyalty through a streamlined, no-frills shopping experience and a focus on operational efficiency.
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