Costco Wholesale beat Wall Street estimates for first-quarter revenue on Thursday, on the back of resilient demand from consumers across income groups amid rising economic uncertainty. ...

ISSAQUAH, Wash., Dec. 11, 2025 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the first quarter of fiscal 2026 (twelve weeks), ended November 23, 2025. Net sales for the first quarter increased 8.2 percent, to $65.98 billion from $60.99 billion last year. Comparable sales for the first quarter fiscal 2026 were as follows: 12 Weeks 12 Weeks Adjusted* U.S.5.9% 5.9% Canada6.5% 9.0% Other International8.8% 6.8% Tota ...

Core Insights - Costco's stock has struggled in 2025, but a positive quarterly result could lead to a turnaround [1] - The company is expected to report strong fiscal first-quarter earnings, driven by its membership model [1] Financial Performance - Q1 EPS is projected at $4.26, an 11.5% year-over-year increase, with total revenues anticipated at $67.3 billion, up 8.3% from the previous year [2] - Preliminary sales data indicates Q1 net sales of $65.98 billion, reflecting an 8.2% rise [2] Competitive Positioning - Costco's membership-based model and bulk sales strategy differentiate it from traditional competitors [3] - Comparable sales rose 6.4%, with U.S. gains of 5.9%, Canada at 6.5%, and Other International markets at 8.8% [3] E-commerce Growth - E-commerce sales are a key growth driver, with digitally enabled comparable sales surging over 20% in the quarter [4] - This follows a 15.6% growth in Q4 FY25, supported by investments in logistics and targeted online promotions [4] Membership Trends - Global membership renewal rates remain above 90%, with membership fee income expected to rise by 9% in FY26 [6] - Online sign-ups are attracting younger demographics, enhancing higher-margin revenue [6] Consumer Behavior - Consumer spending is shifting towards value and essentials, favoring Costco's bulk model [7] - There is a noted decline in non-essential spending, such as apparel, reflecting broader economic caution [8] Market Outlook - Costco's premium positioning and high renewal rates suggest potential outperformance during the holiday season [8] - The stock has a Zacks Rank 3 (Hold), indicating steady expectations despite stretched valuations [10] - Investors are keenly awaiting results for signs of sustained momentum and growth strategies [11]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Costco Wholesale Corporation (NASDAQ:COST) will release earnings results for the first quarter after the closing bell on Thursday, Dec. 11.Analysts expect the Issaquah, Washington-based company to report quarterly earnings at $4.28 per share. The consensus estimate for Costco's quarterly revenue is $67.17 billion, compared to $62.15 billion a year earlier, according to data from Benzinga Pro.The company has beaten analyst estimates for revenue in three straight quarters and in six of the last 10 quarters ov ...

Costco Wholesale Corporation (NASDAQ:COST) will release earnings results for the first quarter after the closing bell on Thursday, Dec. 11.Analysts expect the Issaquah, Washington-based company to report quarterly earnings at $4.28 per share. The consensus estimate for Costco's quarterly revenue is $67.17 billion, compared to $62.15 billion a year earlier, according to data from Benzinga Pro.The company has beaten analyst estimates for revenue in three straight quarters and in six of the last 10 quarters ov ...

Core Viewpoint - Costco is expected to report earnings after the market close, with shares under pressure, having hit a 52-week low and down nearly 5% year-to-date. The anticipated adjusted EPS is $4.26 on revenues of approximately $67.33 billion, reflecting an 8% year-over-year increase [1][3]. Financial Performance - Analysts expect Costco to maintain strong performance despite recent stock declines, with the holiday quarter typically being robust for the company. The expected EPS of $4.26 and revenue of $67.33 billion indicate growth compared to the previous year [3][4]. - November comp sales growth was reported at 8%, with U.S. comp sales up 7%, Canada up 7%, and international markets up 11.4%. This growth suggests that consumer spending remains strong at Costco [5][6]. Market Sentiment - There is a slightly bullish sentiment among analysts, with 11 upward revisions to EPS estimates in the last three months compared to seven downward revisions, indicating confidence in Costco's upcoming earnings report [10][11]. - Despite the positive outlook, concerns exist regarding the company's stock performance, which is the worst in over two decades, leading to speculation that a special dividend may be suspended due to ongoing legal issues and stock performance [8][9]. Consumer Behavior - Consumers are reportedly continuing to shop at Costco, seeking lower prices even amid tighter budgets. This trend is expected to support Costco's sales during the holiday season [4][11]. - The company has a high membership renewal rate of 90%, indicating strong brand loyalty among its customers, which could serve as a catalyst for future growth if membership fees are increased [14].

Core Viewpoint - U.S. stock futures are trading lower, with several companies reporting earnings that may influence investor sentiment today [1] Company Summaries - **Ciena Corp. (NYSE:CIEN)**: Expected to report quarterly earnings of $0.77 per share on revenue of $1.28 billion. Shares rose 1.2% to $224.50 in after-hours trading [1] - **Oracle Corp. (NYSE:ORCL)**: Reported second-quarter revenue of $16.06 billion, missing estimates of $16.21 billion. Adjusted earnings grew 54% year-over-year to $2.26 per share, exceeding estimates of $1.64 per share. Shares dipped 11.5% to $197.30 in after-hours trading [1] - **Broadcom Inc. (NASDAQ:AVGO)**: Analysts expect quarterly earnings of $1.86 per share on revenue of $17.1491 billion. Shares fell 0.8% to $409.70 in after-hours trading [1] - **Adobe Inc. (NASDAQ:ADBE)**: Reported better-than-expected fourth-quarter earnings and projected fiscal 2026 GAAP EPS of $17.90 to $18.10, surpassing the $16.56 analyst estimate. Shares slipped 0.8% to $340.40 in after-hours trading [1] - **Costco Wholesale Corp. (NASDAQ:COST)**: Expected to report quarterly earnings of $4.28 per share on revenue of $67.17 billion. Shares gained 0.1% to $875.28 in after-hours trading [1]

Core Viewpoint - A decline in membership renewal rates and rising concerns regarding operating costs are negatively impacting the retailer's outlook after a period of strong performance [1] Group 1 - Membership renewal rates have dipped, indicating potential challenges in customer retention [1] - There are increasing concerns about operating costs, which may affect profitability and operational efficiency [1] - The retailer has experienced years of significant outperformance, but current trends suggest a shift in this trajectory [1]

Core Viewpoint - Costco's recent stock performance has lagged behind the broader market, but a deeper analysis reveals that it has outperformed over the long term [1]. Short-Term Performance - An investment of $10,000 in Costco stock six months ago would have decreased to $8,769, reflecting a total return of negative-12.3% and an annualized return of negative-22.8% [2]. - In contrast, a similar investment in the S&P 500 index would have grown to $11,480, while the Nasdaq-100 index would have reached $11,820 [3]. Long-Term Performance - Over a three-year period, Costco investors have outperformed the S&P 500, although keeping pace with the Nasdaq-100 during the AI boom has been more challenging [5]. - If the investment in Costco stock was held for five years, it would have outperformed both the S&P 500 and the Nasdaq-100 [8]. Valuation and Economic Environment - Costco's stock was trading at a high valuation of 95 times free cash flow (FCF) in spring 2025, but has since decreased to a multiple of 50, which is still considered high for value investors [10]. - The company faces challenges from increasing operating costs due to tariffs and inflation, impacting its low-margin warehouse retail model [11]. Financial Performance and Investor Sentiment - Despite the stock's price dip, Costco's financial results are strong, with trailing-12-month sales up 19% compared to three years ago and FCF nearly tripling [13]. - Supporters of Costco view the current price dip as a buying opportunity, emphasizing the company's resilience in various economic conditions [14].