Costco (COST) Q1 Earnings Surpass Estimates

Core Insights - Costco reported quarterly earnings of $4.34 per share, exceeding the Zacks Consensus Estimate of $4.26 per share, and showing an increase from $3.82 per share a year ago, resulting in an earnings surprise of +1.88% [1] - The company posted revenues of $67.31 billion for the quarter ended November 2025, slightly missing the Zacks Consensus Estimate by 0.03%, but up from $62.15 billion year-over-year [2] - Costco's stock has underperformed, losing about 4.6% since the beginning of the year, compared to the S&P 500's gain of 17.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $4.47 on revenues of $69.05 billion, and for the current fiscal year, it is $20.00 on revenues of $296.35 billion [7] - The estimate revisions trend for Costco was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Retail - Discount Stores industry, to which Costco belongs, is currently in the top 17% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]