COST Earnings: Costco Stock Little Changed after Beating Top nad Bottom Line Estimates

FomoAnxiety · 2026-03-05T21:32:38+00:00

Costco's Q2 FY2026 earnings surpassed estimates with $4.58 EPS and $69.6 billion in revenue, a 9.2% year-over-year increase. Membership income rose to $1.33 billion, and net income grew to $2.04 billion. Analysts rate COST stock as a Moderate Buy with potential upside.

FomoAnxiety

2026-03-05 21:32:38

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Shares of Costco COST -2.40% ▼ slipped in after-hours trading after the retailer reported earnings for its second quarter of Fiscal Year 2026. Earnings per share came in at 4.58, which beat analysts’ consensus estimate of $4.55 per share.

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Sales increased by 9.2% year-over-year, with revenue hitting $69.6 billion. This beat analysts’ expectations of $69.29 billion and was driven by growth in adjusted comparable sales. Interestingly, this growth rate was higher than what several other large retailers reported during the same winter holiday period, including Walmart WMT -3.52% ▼ . When breaking down these numbers into geographical segments, adjusted growth was as follows:

U.S. 6.4%
Canada 7.6%
Other International 7.1%
Total Company 6.7%
E-commerce 21.7%

At the same time, membership fee income increased to $1.33 billion, up from $1.17 billion a year earlier, which was in line with expectations. Net income also improved to $2.04 billion, a jump from the $1.79 billion seen last year. In addition, by the end of the quarter, Costco operated 924 warehouses worldwide, including 634 in the United States and Puerto Rico.

Is COST Stock a Buy or Sell?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on COST stock based on 18 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average COST price target of $1,077.90 per share implies almost 10% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.

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