Costco (COST) Q4 2025 earnings

Costco Beats Expectations for Quarterly Earnings and Revenue

Costco topped Wall Street’s expectations for quarterly earnings and revenue as the warehouse club posted double-digit gains in both membership income and its e-commerce business.

The company does not share an annual outlook, unlike many other retailers.

CFO Gary Millerchip mentioned on the earnings call that Costco has worked hard to offset higher tariff costs by introducing new items and changing its merchandise assortment to adapt to the changing market conditions.

Overall inflation remained in the low- to mid-single-digit range, with food price increases similar to last quarter. However, inflation returned for non-food merchandise, primarily driven by imported items.

Costco’s net income for the quarter rose to $2.61 billion, with earnings per share of $5.87, exceeding analysts’ expectations. Revenue also increased from the previous year.

Same-store sales rose 6.4% excluding certain factors, marking two quarters of decelerating growth. E-commerce sales increased by 13.5% compared to the previous year.

Costco’s full-year revenue totaled $275.24 billion, up about 8.1% year over year. The company is adding more digital features to enhance the shopping experience for members.

Membership fee income jumped about 14% in the quarter, reflecting an increase in paying shoppers and higher-tier memberships.

CEO Ron Vachris announced plans to open 35 new warehouses in the coming fiscal year. Traffic to stores and the website rose globally during the quarter.

Costco’s fresh category saw growth in perishable items, while non-food categories like jewelry and apparel also performed well.

Shares of Costco have seen significant growth over the past five years, although recent performance has been more modest compared to the overall market.