In a company press release, Costco reported net sales of $21.33 billion for January 2026, representing a 9.3% increase from $19.51 billion in the same period last year. The retail giant, with a market capitalization of approximately $433 billion, continues to demonstrate steady revenue growth, extending its five-year compound annual revenue growth rate of 11%.

For the first 22 weeks of the current fiscal year, the warehouse retailer generated net sales of $123.16 billion, up 8.5%from $113.55 billion a year earlier. This performance aligns with projections for 8% revenue growth in fiscal 2026, highlighting Costco’s strong financial health, which has been rated overall as solid.

Costco remains a key player in the consumer staples distribution and retail sector, although its price-to-earnings ratio stands at 52.8, reflecting a premium valuation relative to recent earnings growth. The company’s digital sales performance has been particularly impressive, surging 34.4% in January and rising 21.8% over the 22-week period.

As of the reporting date, Costco operated 924 warehouse locations worldwide, including 634 in the United States and Puerto Rico. The remainder are located in Canada, Mexico, Asia, Europe, Australia, and New Zealand. The company also maintains e-commerce operations in eight countries.

DA Davidson reiterated its Neutral rating on Costco with a price target of $1,000.00, noting that total comparable sales in January rose 7.1%, similar to the 7.0% growth reported in December. U.S. comparable sales, excluding the effects of foreign exchange and gasoline prices, accelerated from 6.3% in December to 6.8% in January.

Total comparable sales excluding currency and fuel effects increased from 6.2% in December to 6.4% in January, with Canada performing strongly, supported by a weaker U.S. dollar.

Market Interpretation:

Costco has expanded its partnership with Instacart into Europe, launching same-day delivery websites in France and Spain. This marks Instacart’s first entry into these markets, allowing Costco members in both countries to place orders directly through dedicated platforms.

The company also announced a quarterly cash dividend of $1.30 per share, payable on February 13, 2026. These developments underscore Costco’s continued growth momentum and strategic initiatives within the retail sector.