Costco beats fourth-quarter estimates with 11.2% sales growth as digital sales accelerate

Costco reported strong fourth-quarter fiscal 2026 results on September 24, delivering net sales of $93.9 billion (up 11.2% year-over-year) and net income of $2.998 billion, or $6.75 per diluted share. The company beat analyst expectations on both top and bottom lines, with quarterly revenue of $95.72 billion exceeding the Street estimate of $94.86 billion and earnings per share of $6.75 beating the consensus of $6.52. Digital-enabled comparable sales grew 19.5% in the quarter, driven by triple-digit growth in AI-powered search and personalized items on Costco.com. The company highlighted supply-chain efficiencies and favorable sales mix as margin supporters, though management noted headwinds from non-food inflation linked to memory-cost increases in consumer electronics and higher oil-related product costs. Costco plans to open 33 new warehouses in fiscal 2027 and received tariff refunds of approximately $184 million during the quarter, with management planning to reinvest portions in member value. Membership fee income rose 7.3% to $1.85 billion as paid memberships climbed to 82.9 million.

1. Q4 FY2026 net sales: $93.9 billion, up 11.2% year-over-year; quarterly revenue including fees: $95.72 billion
2. EPS of $6.75 beat consensus of $6.52; net income of $2.998 billion vs $2.610 billion prior year
3. Comparable sales rose 9.4% in the quarter, or 6.7% excluding gas price inflation and foreign exchange
4. Digital-enabled comparable sales increased 19.5%; AI-powered search and personalized sales each grew triple digits
5. Paid memberships reached 82.9 million with membership fee income up 7.3% to $1.85 billion
6. Gross margin fell 11 basis points to 11.02%, but core-on-core margins excluding tariff effects rose 18 basis points
7. Company received $184 million in IEEPA tariff refunds in Q4 and similar amount expected in Q1 FY2027
8. Plans to open 33 warehouses in fiscal 2027; currently operates 939 warehouses globally