Costco (COST) Earnings Scorecard

Core Insights - Costco (COST) reported fiscal Q2 2026 earnings with revenue of approximately $69.6 billion and diluted EPS of $4.58, both exceeding Wall Street expectations [1] - Despite the earnings beat, Costco's shares dipped slightly, reflecting high investor expectations and premium valuation [1] Revenue Performance - Total revenue of $69.6 billion beat the estimate of $69.32 billion, with net sales increasing by 9.1% year over year [1] Earnings Performance - EPS of $4.58 surpassed the consensus estimate of $4.54 by approximately 1%, continuing Costco's trend of consistent earnings beats [1] Profit Margins - Gross margin expanded by 17 basis points to 11.02%, while operating income rose to about $2.6 billion, indicating strong profitability [1] Membership Growth - Membership fee income increased by 13.6% year over year to $1.355 billion, supported by member growth and upgrades to executive memberships [1] - Costco ended the quarter with 82.1 million paid members and a worldwide membership renewal rate of 89.7% [1] Comparable Sales - Comparable sales rose by 7.4% globally, or 6.7% when excluding gasoline price changes and foreign exchange effects [1] - Worldwide traffic increased by 3.1%, demonstrating steady customer engagement amid macroeconomic uncertainty [1] Digital Performance - E-commerce comparable sales surged by 22.6% year over year, highlighting Costco's successful digital expansion alongside its traditional retail model [1] Management Outlook - Executives emphasized ongoing strength in membership growth, warehouse traffic, and digital engagement across global markets [1]