Costco Beats Estimates as Digital Sales and Membership Renewals Improve
Costco reported fiscal fourth-quarter earnings of $6.75 per diluted share and revenue of $95.72 billion, beating expectations. Adjusted comparable sales rose 6.7%, while digitally enabled comparable sales increased 19.8% and renewal rates improved. The retailer plans about $7.5 billion in fiscal 2027 capital spending and 33 new warehouses, including five relocations.
Costco's fiscal fourth-quarter net income climbed to $2.998 billion from $2.610 billion, with diluted EPS at $6.75 versus $5.87. Revenue rose 11% to $95.72 billion. Tariff refunds of $184 million added about $0.15 per share after some savings were passed to members; excluding that, EPS was roughly $6.60.
Comparable sales through digital channels rose 19.8% after adjustments, and traffic to its website and app grew 30%, pushing online and app-based sales past $33 billion for fiscal 2026. Fee revenue reached $1.849 billion, Executive members totaled 42.3 million, and renewal rates were 92.3% in the U.S. and Canada and 89.8% worldwide. Costco plans about $7.5 billion in fiscal 2027 capital spending and 33 warehouse openings, five of them relocations.
Costco's continued sales and membership gains may reinforce its role as a low-price destination for budget-conscious households, while digital growth could shift more spending to its app and site. The planned warehouses and $7.5 billion capital program could create construction and retail jobs, affect local suppliers and commercial real estate, and intensify competition for nearby grocers. Investors may benefit from steady renewal rates, though cost pressures and slower paid-membership growth could temper those effects.