Costco's Business Has Been Booming. But Its Stock Has Lagged the Market in 2025.

Core Insights - Costco Wholesale Corporation reported first-quarter fiscal 2026 earnings of $4.50 per share, exceeding analysts' expectations by 19 cents, with revenue increasing 8.3% year-over-year to $67.3 billion [1] - Membership fee revenue grew by 14.0% to $1.33 billion, outperforming forecasts [1] - Despite strong earnings, Costco shares fell nearly 2% in afternoon trading, contributing to a 5% decline in stock value for 2025, underperforming compared to Walmart's nearly 30% gain and the S&P 500's 16% rise [2] E-commerce Performance - Digitally enabled comparable store sales surged by 20.5% in the latest quarter, while overall comparable store sales increased by 6.4% [2] - The company expressed optimism regarding the growth of digital sales, expecting them to outpace average sales growth over the long term, as stated by CFO Gary Millerchimp [3] Membership Revenue - The increase in membership fee revenue indicates strong customer engagement and loyalty, contributing significantly to overall revenue growth [1][4] - Costco did not provide a full-year outlook, leaving investors with uncertainty regarding future performance [4]