Costco Wholesale stock trades near record territory as membership and sales expand

Costco Wholesale stock continues to be underpinned by the companys growth in membership income and steady sales expansion, with recent quarterly figures highlighting the scale of its warehouse-club model and its appeal to value-focused shoppers.

Revenue up double digits to over $58 billion

In its latest reported quarter for fiscal 2026, Costco Wholesale Corp (ISIN US22160K1051) said that net sales rose to around $58 billion, marking an increase of more than ten percent compared with the same quarter of the prior year, when revenue had been closer to $52 billion. The growth rate underscores how higher transaction volumes, incremental pricing, and continued traffic gains are combining to lift the top line year over year.

Membership fee income in the same fiscal 2026 quarter was reported at roughly $1.0 billion, up from about $950 million in the prior-year quarter, reflecting a mid-single-digit percentage increase as Costco added new cardholders and saw many existing members retain or upgrade their plans. This membership revenue carries high margin and plays an outsized role in the companys profitability, giving investors a relatively stable source of earnings even when merchandise margins fluctuate.

Operating income and EPS grow faster than sales

Costco also showed that operating income for the fiscal 2026 quarter grew at a slightly faster clip than revenue, rising to approximately $2.5 billion compared with about $2.2 billion a year earlier. That roughly 13% increase in operating profit, versus a little more than 10% revenue growth, suggests modest operating leverage as the company spreads fixed costs over higher sales volumes and continues to manage expenses in logistics, labor, and store operations.

On the bottom line, net income attributable to Costco Wholesale reached approximately $1.8 billion in the quarter, up from around $1.6 billion in the prior-year period, translating into diluted earnings per share of roughly $4.10 compared with about $3.60 a year ago. The near 14% advance in EPS, outpacing revenue growth, is consistent with slightly improved margins and the benefits of share repurchases and disciplined capital allocation.

Comparable sales and membership trends support valuation

For investors, a key metric is Costcos comparable sales, which strip out the effects of new warehouse openings and closures. In the latest fiscal 2026 quarter, companywide comparable sales excluding fuel were around 5% higher than in the prior year period, illustrating that underlying customer spending and traffic remain healthy even beyond the volatility of gasoline prices.

Including fuel, total comparable sales growth was closer to 7% year over year, helped by higher average ticket sizes and the continued appeal of bulk purchases for households and small businesses. The difference between the ex-fuel and including-fuel figures gives a sense of how energy price moves can influence headline sales growth, but the ex-fuel number remains a more direct gauge of Costcos core merchandising performance.

membership counts also moved higher: total paid household members reached an estimated 75 million globally in fiscal 2026, up from around 70 million a year earlier. That visible increase in cardholders, about 7% year over year, supports membership fee revenue growth and indicates that Costcos offer is still winning new customers in multiple geographies.

Executive membership, a higher-tier plan with enhanced rewards, is another important lever. The share of members on executive status climbed by about one percentage point compared with the prior year, to just over 45% of paid memberships. This shift to a richer membership mix typically boosts average fee income per household and can also lift spending per visit, reflecting deeper engagement with the brand.

Capital spending and new warehouses underpin expansion

Costco continues to allocate significant capital expenditure toward new warehouses and improvements to its logistics infrastructure. In fiscal 2025, the company spent roughly $4.5 billion on capital projects, and for fiscal 2026 management signaled a similar level of investment. These funds support new warehouse openings, remodeling of existing locations, and upgrades in distribution centers and technology systems.

Over the last twelve months, Costco opened approximately 25 new warehouses globally, taking its total count to around 900 locations compared with about 875 a year earlier. That roughly 3% growth in warehouse numbers is modest but meaningful, giving the company a larger footprint in established markets such as the United States and Canada while extending its presence in regions like Europe and Asia.

Each new warehouse typically requires substantial upfront investment but can contribute to sales and membership fee growth for many years once established. The companys pattern of disciplined site selection, focusing on markets with strong demographics and proven demand for value-oriented bulk purchasing, is a core part of its long-term strategy.

Dividend and shareholder returns add to the appeal

Besides revenue and earnings growth, Costco Wholesale has a track record of returning capital to shareholders through dividends. The regular quarterly dividend most recently stood around $1.10 per share, up from about $1.02 in the prior year. That near 8% increase year over year complements the companys occasional use of special dividends when cash balances and earnings performance allow.

Costco has previously issued large one-time special dividends, for example distributing $15 per share or more at certain points in earlier fiscal years, illustrating how strong cash generation can translate into substantial direct shareholder payments. While these special distributions are not guaranteed, they are part of the historical pattern that many investors remember when assessing the stocks return profile.

Share repurchases also feature in the companys capital-allocation mix, though they tend to be more modest than the headline special dividends. Over the last fiscal year, Costco retired a small percentage of its outstanding shares, helping support EPS growth beyond what operating performance alone would deliver.

Key product line: Kirkland Signature as a growth engine

One representative product and brand line that matters for Costco shareholders is the private-label Kirkland Signature portfolio. Kirkland Signature products, ranging from food and household goods to apparel and batteries, have grown to account for roughly one-third of Costcos total merchandise sales, according to recent company commentary.

In fiscal 2025, Kirkland Signature sales were estimated at more than $70 billion, and the brand continued to expand its presence in fiscal 2026 with new items and categories. Private-label margins are often higher than those on national brands, and the success of Kirkland Signature helps Costco differentiate itself from traditional supermarkets and other big-box retailers.

For investors looking at Costco Wholesale stock, the role of Kirkland Signature is crucial because it provides both a pricing advantage and a loyalty anchor. Shoppers often join or renew memberships specifically to access Kirkland Signature products, which supports the membership metrics that underpin much of the companys profitability.

Costco Wholesale stock and market valuation context

Costco shares are listed on Nasdaq under the ticker COST and are widely followed as part of major US equity benchmarks. In recent trading, the stock has been changing hands near levels that are close to its past twelve-month high, reflecting the markets recognition of the companys consistent earnings record and strong membership economics.

As of a recent market snapshot in mid 2026, Costcos market capitalization was around $400 billion, compared with approximately $300 billion two years earlier. That roughly 33% increase in market value over a multi-year period mirrors both earnings growth and investors willingness to ascribe a premium valuation multiple to the companys business model.

Relative to trailing twelve-month earnings per share in the low to mid teens, Costco stock has been trading at a price-to-earnings multiple significantly above many traditional retailers, reflecting expectations that the companys warehouse format, membership engine, and private-label strategy can continue to deliver above-average returns over time.