Costco delivers top-line sales growth for Q4, FY2026
Costco Wholesale Corp. has reported higher profits for its fourth quarter, ended Aug. 30. Net sales for Q4 were $93.87 billion, a 11.2% jump from a year earlier. For fiscal year 2026, net sales increased 10.1% to $297.2 billion.
According to the membership-only warehouse club, Costco delivered consistently strong comparable-sales growth in Q4 through a focus on value, quality and newness. Comp sales were up 9.4%, and up 6.7% adjusted for gas price inflation and foreign exchange. Excluding gas sales entirely and adjusting for the impact of foreign exchange, comp sales rose 6.7%.
Fresh comp sales were up by mid-single digits, led by bakery and meat. Food and sundries comp sales grew by low- to mid-single digits, led by packaged foods, sundries and frozen foods.
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“We continue to see a shift in member shopping habits towards healthier packaged foods and protein items such as meat snacks, sardines, canned tuna and chicken, as well as high-fiber options such as edamame and granola snacks. All experienced strong growth,” said CFO Gary Millerchip during the company’s earning call.
Nonfood sales were up by mid- to high-single digits, with health and beauty among the top performing departments. Some of the best-performing items this quarter included K-beauty products such as collagen face masks and lotions from a number of top Korean vendors.
Ancillary businesses also performed well across the board with gas, pharmacy and travel leading the way, all growing at a faster pace than Costco's overall growth rate.
“Our gas business has had a record year, driven by members seeking value and Costco’s top-tier gasoline in the face of rising prices,” said CEO Ron Vachris. “In fiscal year 2026, we saw the penetration of U.S. member households that purchase gas reach an all-time high. During the fiscal year, we estimate we saved our members over $3.2 billion versus the average price at the pump in markets where we operate."
In e-commerce, sales grew at a faster rate than core merchandise sales. Q4 digitally enabled comp sales improved 19.5%. Additionally, for FY2026, digitally enabled comp sales skyrocketed 20.9%.
Costco recently boosted the ways that members can engage with the retailer online by growing its partnership with Uber Eats from 17 states to the entire nation and expanding its global DoorDash partnership to include the United States.
Meanwhile, net income for Costco's Q4 was $2.998 billion, up 12.3% excluding the tariff refund benefit. Earnings per share were $6.75, up from $5.87 a year earlier. Net income for the fiscal year was $9.226 billion, or $20.76 per diluted share, compared with $8.099 billion, or $18.21 per diluted share, last year.
Traffic or shopping frequency increased 3.3% worldwide. Average transaction or ticket was up 5.9% worldwide.
Costco ended the quarter with 84.1 million total paid members, up 3.8% from last year, and 150.4 million cardholders, up 3.6% year over year. In terms of renewal rates at Q4's end, the U.S. and Canada renewal rate was 92.3%, up 10 basis points from last quarter.
The retailer's capital expenditure was $2.21 billion in Q4 and $6.4 billion for the full year.
In Q4, Costco opened 12 warehouses, including 10 new U.S. buildings and a 43rd warehouse in Mexico. During the fiscal year, Costco opened 28 new warehouses.
For FY2027, Costco expects approximately $7.5 billion in capital expenditure. The company’s current plan is to open another 33 warehouses during the fiscal year, of which five are relocations, as it builds toward its goal of opening 30 net new warehouses per year.
Upcoming clubs include Costco's first warehouse in the Buffalo, N.Y., area, located in Amherst at 4230 Ridge Lea Road, which is scheduled to open on Oct. 28. The retailer will also add to its three locations in Kansas with a new club in Lawrence on Oct. 29.
Costco leaders mentioned that the company will continue outside spend on its supply chain to support future warehouse and e-commerce sales growth.
“Beyond FY2027, we would expect to see a slowing in the rate of capital expenditure growth following three years of outsized growth that began in FY2025,” Millerchip pointed out.
This article was first published on Canadian Grocer's sister site, Progressive Grocer.
