Costco Q3 revenue tops expectations
May 28, 2026 at 21:12 UTC
Key Points
- Costco (COST) posted fiscal Q3 net income of $2.19 billion, or $4.93 per share
- Quarterly revenue reached $70.53 billion, above Wall Street forecasts
- Comparable sales rose about 6.6% (mid-single-digit), while digital sales jumped nearly 21% (double-digit).
- Paid memberships and online traffic increased alongside strong category demand
Costco posts solid fiscal third-quarter results
Costco (COST) reported fiscal third-quarter results for the period ended May 10, 2026, delivering higher profit and revenue than a year earlier. Net income rose to $2.19 billion, or $4.93 per share, compared with $1.9 billion, or $4.28 per share, in the prior-year quarter.
Revenue for the quarter increased to $70.53 billion from $63.2 billion a year ago. The company’s performance reflected broad-based sales growth, supported by rising customer traffic and membership gains.
Revenue and earnings versus expectations
Costco’s (COST) $70.53 billion in quarterly revenue exceeded Wall Street’s expectation. Verified figures show analysts had projected $69.81 billion in revenue, indicating a clear beat on the top line.
Earnings per share of $4.93 were broadly in line with market expectations. A consensus compiled on May 28 from roughly 30 analysts had called for EPS of $4.92 and revenue of $69.64 billion. EPS estimates ranged from $4.75 to $5.27 and revenue forecasts from $68.18 billion to $70.80 billion.
Sales performance and growth metrics
Adjusted comparable sales increased 6.6% in the quarter, highlighting underlying strength in Costco’s core warehouse business. The company also reported that digital sales rose nearly 21%, underscoring continued momentum in its online channels.
Paid memberships grew 4.1% during the quarter, reinforcing the importance of subscription revenue to Costco’s business model. Traffic to the company’s website and app increased about 37%, pointing to higher customer engagement with its digital platforms.
Category and channel highlights
Costco cited pharmacy, home furnishings, and gold and jewelry as among its top-performing categories in the quarter. These areas contributed to the overall revenue growth and reflected demand across both everyday needs and discretionary purchases.
The company’s digital performance complemented its in-store results, with nearly 21% growth in online sales and a sharp rise in web and app traffic. This combination indicated that customers are using multiple channels to access Costco’s offerings.
Market reaction and broader context
Despite the stronger-than-expected revenue and growth across several metrics, Costco shares were largely unchanged in extended trading after the earnings release on May 28. The muted reaction came even as revenue topped forecasts and EPS aligned closely with consensus.
Analyst expectations ahead of the report had spanned a modest range for both earnings and sales, and Costco ultimately delivered results either meeting or exceeding those projections. The quarter underscored continued expansion in sales, memberships, and digital engagement.
Key Takeaways
- Costco delivered year-over-year growth in profit and revenue while also exceeding consensus revenue forecasts.
- Membership and digital metrics advanced alongside core comparable-sales growth, signaling strength across the business model.
- Investor response was restrained, suggesting the market had largely anticipated strong results despite the revenue beat.
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