Overview
- Costco reported fiscal third-quarter results for the 12 weeks ending May 10, with net income of $2.19 billion, net sales of $69.15 billion and comparable sales up 9.8%.
- The company finished the quarter with 82.9 million paid members, membership fee income of about $1.37 billion and a U.S./Canada renewal rate of roughly 92.2%, signaling steady recurring revenue.
- Management said it cut prices on key items to drive traffic and noted digitally enabled comparable sales jumped about 21.5% while store visits rose, but aggressive fuel pricing produced the five highest weekly gas volumes in company history and weighed on margins.
- Shares have softened since late May with the stock trading at a mid‑40s forward P/E, yet most analysts remain positive with an average 12‑month price target near $1,100 and a majority rating of buy or hold.
- Costco is expanding services and capacity—investing in digital and AI product pages, pharmacy and sub‑45‑minute same‑day delivery, and planning roughly 26 net new warehouses in fiscal 2026—which should support long‑term growth even as investors watch near‑term margin sensitivity.