Costco Wholesale Corporation reported a significant increase in its financial performance for the fiscal year ending August 30, 2026, with net sales reaching $297.2 billion, a 10% increase from $269.9 billion in the previous year. The company's net income also rose by 14% to $9.2 billion, or $20.76 per diluted share, compared to $8.1 billion, or $18.21 per diluted share, in 2025. This growth was primarily driven by an increase in comparable sales, which rose by 8%, and the opening of 25 net new warehouses, contributing to overall sales growth.
In terms of operational metrics, Costco's membership base expanded significantly, with paid members increasing to 84.1 million from 81 million in the previous year. The company also reported a member renewal rate of 92.3% in the U.S. and Canada, and 89.8% worldwide, indicating strong customer loyalty. The average ticket size increased by 5%, while shopping frequency rose by 3%, further contributing to the sales growth. Additionally, digitally-enabled sales surged by 21%, reflecting the growing importance of e-commerce in Costco's overall strategy.
Costco's strategic developments included the opening of 28 new warehouses, with 18 located in the U.S., five in Canada, and two in other international markets. The company plans to continue this expansion, with up to 33 new warehouses expected to open in 2027. The company also reported an 11% increase in membership fee revenue, totaling $5.9 billion, driven by new sign-ups and upgrades to Executive memberships. The gross margin percentage slightly decreased to 11.09%, but increased to 11.22% when excluding the impact of gasoline price inflation.
The company maintained a strong cash position, with cash and cash equivalents totaling $20.2 billion at the end of the fiscal year, up from $14.2 billion in 2025. Costco's total assets increased to $89 billion, compared to $77.1 billion in the previous year. The company also reported a decrease in selling, general, and administrative expenses as a percentage of net sales, which fell to 9.15%. Looking ahead, Costco's management expressed confidence in its growth strategy, emphasizing the importance of maintaining member loyalty and expanding its warehouse footprint to drive future profitability.
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.
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.
View the complete official filing on the SEC website.
Read on SEC.gov