Costco Wholesale (NASDAQ:COST) Stock Jumps 2.9% on Earnings Beat

Costco Wholesale Corporation (NASDAQ:COST) traded up 2.9% during mid-day trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $925.14 and last traded at $922.77. 4,600,956 shares were traded during mid-day trading, an increase of 110% from the average session volume of 2,195,869 shares. The stock had previously closed at $896.48.

The retailer reported $6.75 EPS for the quarter, topping analysts’ consensus estimates of $6.54 by $0.21. The firm had revenue of $95.72 billion during the quarter, compared to analysts’ expectations of $94.97 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%.

Costco Wholesale Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were given a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Friday, July 24th. Costco Wholesale’s dividend payout ratio (DPR) is 29.58%.

Costco Wholesale News Summary

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Solid quarterly beat: Costco reported $6.75 in adjusted diluted EPS versus the $6.54 consensus estimate, while revenue reached $95.72 billion, above expectations of $94.97 billion. Net income rose 14.9% to nearly $3 billion. Costco Ends Its Fiscal Year on a High Note, Eyes Big Expansion
• Positive Sentiment: Broad-based sales momentum: Fourth-quarter comparable sales increased 9.4%, and digitally enabled comparable sales jumped 19.5%. Pharmacy, gasoline, essentials and membership growth supported demand, while management highlighted stronger digital engagement and younger members. COST Q4 Earnings Beat Estimates on Sales and Digital Strength
• Positive Sentiment: Expansion remains a catalyst: Costco plans to accelerate warehouse openings, targeting 33 new locations in fiscal 2027. The company ended fiscal 2026 with 939 warehouses, reinforcing its long-term growth opportunity. Costco Q4 Earnings Call Highlights Expansion and Digital Growth
• Neutral Sentiment: Tariff refund boosted results: Costco received $184 million in tariff refunds and said the majority would be passed to members through lower prices. The benefit contributed approximately $0.15 per share, meaning the underlying earnings beat was somewhat smaller. Costco Receives $184M in Tariff Refunds
• Negative Sentiment: Premium valuation limits upside: Analysts noted that COST trades at an elevated earnings multiple, leaving little room for execution disappointments. Several firms lowered price targets after the report, despite generally retaining positive or neutral ratings. Costco: Great Quarter, But The Valuation Still Prices In Excellence
• Negative Sentiment: Profit-quality concerns: Membership-fee growth slowed sharply after the benefit from the 2024 fee increase began to fade. In addition, memory-cost inflation produced a $152 million electronics-related charge, highlighting margin pressure. Memory Inflation Is Hitting Costco’s Electronics Business

Analysts Set New Price Targets

A number of analysts have weighed in on COST shares. BTIG Research reiterated a “buy” rating and issued a $1,125.00 price target on shares of Costco Wholesale in a research report on Wednesday. Mizuho reduced their target price on shares of Costco Wholesale from $1,100.00 to $1,065.00 and set an “outperform” rating on the stock in a research note on Friday. JPMorgan Chase & Co. dropped their target price on shares of Costco Wholesale from $1,100.00 to $1,015.00 and set an “overweight” rating for the company in a research report on Friday. Citigroup assumed coverage on shares of Costco Wholesale in a research report on Thursday, June 18th. They issued a “neutral” rating and a $1,020.00 price target on the stock. Finally, The Goldman Sachs Group raised their price objective on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a report on Friday, May 29th. Twenty-three research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Costco Wholesale currently has a consensus rating of “Moderate Buy” and an average price target of $1,046.77.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in Costco Wholesale in the 4th quarter valued at $27,000. Lifetime Wealth Management P.C. bought a new stake in shares of Costco Wholesale during the fourth quarter worth $28,000. C M Bidwell & Associates Ltd. bought a new stake in shares of Costco Wholesale during the second quarter worth $28,000. Burk Holdings LLC acquired a new position in shares of Costco Wholesale during the second quarter valued at $30,000. Finally, Manning & Napier Advisors LLC acquired a new position in shares of Costco Wholesale during the second quarter valued at $30,000. Institutional investors own 68.48% of the company’s stock.

Costco Wholesale Stock Performance

The firm has a fifty day moving average of $934.32 and a 200-day moving average of $968.18. The firm has a market cap of $409.23 billion, a P/E ratio of 46.42, a PEG ratio of 3.78 and a beta of 0.86. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17.

About Costco Wholesale

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.