Overview
- Bank of America reinstated coverage with a Buy rating and a $1,185 price target, citing pricing strength and customer loyalty.
- Membership fees generated $5.3 billion last fiscal year, about 64% of profits, with Q1 fee income up 14% to $1.329 billion.
- Paid memberships reached 81.4 million with 39.7 million Executive Members, while U.S. and Canada renewal rates eased to 92.2% tied to more digital sign-ups and targeted retention is underway.
- The regular quarterly dividend was raised to $1.30 per share, with an estimated payout near 28% of free cash flow that leaves room for future increases or special dividends.
- Costco ended Q1 with 921 warehouses and plans 28 net new openings in fiscal 2026, as the stock trades at a premium valuation near 54 times earnings with a market value around $445 billion.