Key Takeaways:
- Revenue rose 11.6% to $69.15B, topping consensus estimates
- Comparable sales grew 9.8% globally, outpacing big-box peers
- Gasoline volumes hit a record, boosting traffic and membership growth
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Costco Q3 revenue rises 11.6% to $69.2B, beating consensus estimates
Costco Wholesale Corp. reported fiscal third-quarter revenue of $69.15 billion, up 11.6% and ahead of analyst expectations.
"We saw record-breaking gasoline volumes during the quarter as members responded to higher pump prices," Chief Financial Officer Gary Millerchip said on the earnings call.
Comparable sales rose 9.8% globally, or 6.6% excluding gasoline and foreign-exchange impacts. US comparable sales gained 9.4%, while Canada and other international markets posted increases of 10.7% and 11.2%, respectively. Digitally-enabled comparable sales surged 21.5%.
Net income climbed to $2.19 billion, or $4.93 a share, from $1.90 billion, or $4.28, a year earlier. Membership fees, a key profit driver, rose 10.7% to $1.37 billion. Shares slipped less than 1% in postmarket trading.
Costco's performance outpaced major retail rivals. Walmart reported US comparable sales growth of roughly 5% in its most recent quarter, while Target and Dollar General posted lower single-digit gains. The warehouse club's ability to draw traffic through discounted gasoline and everyday essentials has strengthened its competitive position as inflation-conscious consumers seek value.
The company ended the quarter with 931 warehouses globally, including 639 in the US and Puerto Rico. It operates e-commerce sites in nine markets, with digital sales growing at more than 20% for both the quarter and the first 36 weeks of the fiscal year.
For the first 36 weeks of fiscal 2026, Costco generated net sales of $203.37 billion, up 9.6% from a year earlier. Operating income rose to $7.88 billion from $7.04 billion.
The results show Costco's membership model continues to insulate it from the margin pressure affecting traditional retailers. Investors will watch the company's Q4 performance for signs of whether gasoline demand and membership renewal rates can sustain their momentum through the summer driving season.
This article is for informational purposes only and does not constitute investment advice.
[1] Costco Wholesale Q3 Earnings Call Highlights[2] Costco Q3 earnings in line with expectations, revenue beats[3] Costco says it saw 'record-breaking' gas volumes amid rising prices[4] Costco smashes comparable sales expectations, outpaces big box peers[5] Costco Wholesale Corporation Reports Third Quarter and Year-To-Date Operating Results For Fiscal 2026
