Costco Wholesale Corporation is a well-known global retail giant with membership-only warehouse clubs. Founded in 1983 by James Sinegal and Jeffrey Brotman in Seattle, Washington, Costco now has over 905 locations worldwide. The company offers a variety of products, including groceries, electronics, and appliances, all at lower prices compared to traditional stores. Costco is also renowned for its private label brand, Kirkland Signature, which offers high-quality products at affordable prices.
Costco’s business model is based on efficiency and bulk buying to save money for its members. The company is dedicated to quality and customer satisfaction, with a 100% satisfaction guarantee on its products. With over 136.8 million loyal members as of 2024, Costco remains a leading force in the retail industry. The company’s headquarters are in Issaquah, Washington, and it is known for its innovative retailing approach.
Costco Fiscal Q4 2025
Costco Wholesale (COST) has released its operating results for the fourth quarter and full fiscal year ended August 31, 2025. The company delivered robust growth across key metrics.
Costco’s net sales for Q4 rose by 8% year-over-year, reaching $84.4 billion compared to $78.2 billion in the same period last year. For the full fiscal year, net sales climbed 8.1% to $269.9 billion, up from $249.6 billion in fiscal 2024.
Costco posted solid comparable sales growth across all regions and channels:
E-commerce continues to be a standout performer, with double-digit growth in both the quarter and full year, reflecting Costco’s successful digital strategy across multiple international markets.
Net income for Q4 reached $2.610 billion, or $5.87 per diluted share, compared to $2.354 billion, or $5.29 per share, in the prior year. It’s worth noting that last year’s results included a one-time tax benefit of $63 million, or $0.14 per share.
For the full fiscal year, net income rose to $8.099 billion, or $18.21 per diluted share, up from $7.367 billion, or $16.56 per share, in fiscal 2024.
Highlights:
- Net Sales: Costco generated $84.43 billion in revenue during Q4, up 8% from $78.18 billion a year earlier.
- Net Income: Quarterly profit reached $2.61 billion, or $5.87 per diluted share, an 11% increase from last year’s $2.35 billion, or $5.29 per share.
- Comparable Sales: Overall sales rose 5.7%, or 6.4% when adjusted for lower gas prices and currency changes.
- E-commerce: Online sales totaled $19.6 billion for the year, growing more than 15%.
- Gross Margin: Improved to 11.13%, up 13 basis points compared to last year.
- Membership Fees: Brought in $1.72 billion, marking a 14% increase.
- Warehouse Network: Costco now operates 914 locations globally, with 27 new sites added in fiscal 2025.
- Executive Memberships: Reached 38.7 million, up 9.3% from last year.
These gains reflect Costco’s ability to manage costs, drive volume, and maintain strong margins despite a competitive retail environment.
Board Statements
CFO Gary Millerchip stressed the importance of everyday value in uncertain economic conditions, pointing to Costco’s signature items, hot dog combos, rotisserie chickens, and Kirkland Signature bath tissue.
In fiscal 2025, the company sold over 245 million hot dog combos, more than 157 million rotisserie chickens, and enough bath tissue to “reach the moon and back over 200 times.
While these staples continue to attract loyal customers, Millerchip noted that shoppers are becoming more cautious with discretionary purchases, favoring essential value over non-necessities.
Impact on the Stock Market
Costco slightly beat expectations in its fourth-quarter and fiscal year 2025 earnings, reporting $86.16 billion in quarterly revenue and $5.87 in adjusted EPS, both above forecasts.
Also, annual revenue reached $275.24 billion, and adjusted EPS hit $18.21, both topping projections.
Costco’s earnings report had a mixed impact on its stock. While the company slightly beat expectations on revenue and earnings, and posted strong same-store sales growth, especially in Canada and e-commerce, investors showed caution.
The stock dipped about 1% in premarket trading following the release, likely due to management’s comments about consumers being more selective with discretionary spending. This raised concerns about future growth in higher-margin categories, despite solid performance in core value items.
