Costco Wholesale (NASDAQ:COST) Posts Quarterly Earnings Results

Costco Wholesale (NASDAQ:COST) posted its quarterly earnings results on Thursday. The retailer reported $6.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $6.54 by $0.21, FiscalAI reports. The business had revenue of $95.72 billion for the quarter, compared to the consensus estimate of $94.97 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.

Costco Wholesale Stock Performance

COST stock traded down $8.22 during midday trading on Thursday, hitting $896.48. 2,822,268 shares of the stock traded hands, compared to its average volume of 2,185,807. The stock’s fifty day simple moving average is $935.31 and its 200-day simple moving average is $968.90. The firm has a market cap of $397.57 billion, a P/E ratio of 45.09, a PEG ratio of 3.78 and a beta of 0.86. Costco Wholesale has a 1-year low of $844.06 and a 1-year high of $1,096.50. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61.

Costco Wholesale Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were paid a $1.47 dividend. This represents a $5.88 annualized dividend and a dividend yield of 0.7%. The ex-dividend date was Friday, July 24th. Costco Wholesale’s payout ratio is currently 29.58%.

Wall Street Analyst Weigh In

A number of research firms have weighed in on COST. Truist Financial upped their target price on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a “hold” rating in a report on Friday, May 29th. BTIG Research reiterated a “buy” rating and issued a $1,125.00 target price on shares of Costco Wholesale in a report on Wednesday. Citigroup assumed coverage on shares of Costco Wholesale in a report on Thursday, June 18th. They issued a “neutral” rating and a $1,020.00 price target on the stock. TD Cowen reiterated a “buy” rating and set a $1,175.00 price objective on shares of Costco Wholesale in a report on Wednesday, June 3rd. Finally, Weiss Ratings downgraded Costco Wholesale from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, September 2nd. Twenty-two research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $1,052.65.

Key Costco Wholesale News

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

• Positive Sentiment: Costco is expected to report roughly $94 billion in revenue and approximately $6.53–$6.59 in earnings per share. Strong traffic, digital sales and membership growth could reinforce the company’s defensive consumer position. Costco Q4 Preview: Members Are Engaged Despite Ongoing Macro Uncertainty
• Positive Sentiment: Analyst support remains a potential catalyst: BTIG reaffirmed a Buy rating and a $1,125 price target, citing durable growth drivers. Other reported targets are also well above the current level. Analyst Reiterates Buy on Costco
• Neutral Sentiment: Investors are focused on renewal rates, membership additions, comparable sales and the quality of earnings rather than headline revenue alone. Renewal rates above 90% and Costco’s value proposition could support long-term stability, but the results must justify a high earnings multiple. Costco’s Sales Are In – Now Comes the Real Test
• Negative Sentiment: The benefit from Costco’s 2024 membership-fee increase may be fading. Because membership fees contribute about half of operating income, slowing fee-related growth could pressure future earnings momentum. Costco’s Membership Fee Boost Is About to Run Out
• Negative Sentiment: Margin risks—including tariffs, merchandise costs and possible tariff refunds—are key concerns. Investors also want clarity on whether higher gas prices help fuel sales or hurt household budgets. With shares valued at about 45 times earnings, even a solid quarter could disappoint if margins or guidance are weak. Costco Q4 Preview: Healthy Earnings, Margin Risks and Anticipations

Costco Wholesale Company Profile

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.