Costco reported strong fiscal 2026 third-quarter results on Thursday, exceeding market expectations thanks to solid comparable sales growth, continued increases in membership fee revenue, and strong momentum in its e-commerce operations. Despite ongoing macroeconomic uncertainty, Costco continues to attract investor attention through resilient consumer demand, improving membership renewal rates, and expanding online sales.

The warehouse retailer generated net sales of US$69.15 billion during the quarter, representing an 11.6% increase compared with US$61.97 billion in the same period last year. For the quarter ended May 10, 2026, total revenue including membership fees rose to US$70.53 billion, surpassing Wall Street expectations of US$69.62 billion. Net income increased to US$2.19 billion, with diluted earnings per share reaching US$4.93, compared with net income of US$1.90 billion and diluted EPS of US$4.28 in the prior-year period.

Across geographic regions, Costco’s international operations delivered particularly strong performance. Comparable sales in Canada increased 10.7%, while other international markets posted growth of 11.2%. Comparable sales in the United States rose 9.4%.

For the first 36 weeks of fiscal 2026, Costco generated net sales of US$203.37 billion, representing year-on-year growth of 9.6%. Net income increased to US$6.23 billion, while diluted earnings per share reached US$14.01.

As of the end of the quarter, Costco operated 931 warehouse locations globally, including 639 stores across the United States and Puerto Rico. The company continues expanding both its international footprint and digital business initiatives.

Costco’s cash generation remained equally impressive. Operating cash flow reached US$11.13 billion during the first 36 weeks of fiscal 2026, compared with US$9.47 billion during the same period last year.

Market Analysis

Global comparable sales increased 9.8% during the quarter. Excluding the impact of gasoline prices and foreign exchange fluctuations, adjusted comparable sales rose 6.6%.Digital sales surged 21.5%, further reinforcing the continued strength and momentum of Costco’s online business.