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Costco Wholesale Corporation
S&P 500 Nasdaq 100
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$401.7B
Market Cap
51.8
P/E
5.34
PEG
36.4%
ROCE
30.7%
ROE
0.28
D/E
3.8%
OPM
-17.2%
% from 52W High
32
α RS
🔍 COST is showing a high-conviction setup because it matches 7 of 39 tracked screener presets, it's within 17.2% of its 52-week high, and bulletproof_quality preset's Backtest win rate is 55.3% over 90 days. Net: Broad signal stack, not a recommendation. ? Conviction 52W High Backtest
Sources
Conviction 7/39 · 17.2% from 52W high · Backtest win rate 55.3%
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🌏 Global Investor Returns
Currency-adjusted total returns for COST including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. It offers merchandise, including sundries, dry groceries, candies, coolers, freezers, deli, liquor, and tobacco; non-food merchandise comprising appliances, small electronics, health and beauty aids, hardware, lawn and garden, sporting goods, tires, toys and seasonal, automotive, stamps, tickets, apparel, furniture, domestics, housewares, special order kiosks, and jewelry; and fresh food, such as meat, produce, service deli, and bakery products. The company is also involved in warehouse ancillary operations, which include gasoline, pharmacies, optical, food courts, hearing-aid centers, and tire installation centers. In addition, it engages in e-commerce, business centers, travel, and other businesses. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding COST
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 155.6K $155.0M 0.20% Mar 2026
Jim Simons Renaissance Technologies LLC 19.5K $19.4M 0.03% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q3 2026
Revenue
$69.2B
+11.6% YoY
Operating Income
$2.8B
+11.3% YoY
Operating Margin
4.07%
-0.1pp YoY
Net Income
$2.2B
+15.2% YoY
What Went Right
  • Gas business set all-time volume records; final five weeks were top five volume weeks ever
  • Digital comparable sales up 21.5%, with same-day delivery growing faster than overall digital
  • Executive membership grew 9.6% to 41.2 million, driving membership fee income up 10.7%
What to Watch
  • Core-on-core gross margin down 9 bps due to price investments in fresh and food & sundries
  • Healthcare costs pressured SG&A, offsetting productivity gains; operations SG&A worse by 3 bps ex-gas
  • Tariff refund process is ongoing; amount and timing of member returns depends on approvals and lawsuit
Management Guidance
  • No formal revenue or profit guidance provided for Q4 or full year
  • Expect 26 net new warehouse openings in fiscal 2026 (down from prior 28 due to two buildings sliding to FY2027)
  • Capital expenditures for full year FY2026 estimated at approximately $6.5 billion
Investor Lens
The thesis is stronger after this call. Costco demonstrated pricing power and loyalty amid macro uncertainty, with record gas volumes drawing new members and digital engagement accelerating. Membership growth remains healthy at 4.1%, and renewal rates are stabilizing. Core margin pressure is tactical and intentional, reflecting a willingness to invest in value to drive volume. The lack of formal guidance is typical, but the tone and trends support continued market share gains.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong Q3 despite gas headwinds; core margin investments yield volume
Revenue
Net sales rose 11.6% YoY to $69.15 billion, driven by gas comps up high-20s and digital comparable sales up 21.5%. Excluding gas and FX, comparable sales were up 6.6%, with traffic up 2.4% and average ticket up 4.2%.
Profitability
Net income grew 15% to $2.192 billion, or $4.93 per diluted share, from $1.903 billion ($4.28) a year ago. Operating income increased 11.3% to $2.815 billion, with operating margin slightly down to 4.07% from 4.08%.
Margins
Reported gross margin fell 21 bps to 11.04%, but excluding gas inflation it was +1 bps. Core-on-core margins declined 9 bps due to price investments in eggs, beef, and other everyday items. Transportation costs were a headwind from higher gas prices. SG&A improved 20 bps to 8.96% (or 2 bps worse ex-gas) as higher healthcare costs offset operational leverage.
Balance Sheet
Cash and cash equivalents stood at $18.946 billion. Capital expenditure in Q3 was $1.41 billion, with full-year CapEx estimated at ~$6.5 billion. The company has no debt issues and continues to generate excess cash, with a focus on special dividends as a return mechanism.
Key Risks
Management flagged core-on-core margin pressure from deliberate price investments to offset gas inflation and protect share. Healthcare costs are rising and could continue to weigh on SG&A. Tariff refund claims have been submitted, but the amount and timing of member returns are uncertain pending CBP approvals and a related lawsuit.
Outlook
No formal revenue or EPS guidance was provided. The company expects 26 net new warehouse openings in fiscal 2026, with two buildings delayed to FY2027. CapEx for the full year is estimated at $6.5 billion, reflecting investment in new warehouses, remodels, and digital capabilities.
Generated by AI · Q3 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q3 2026 Q3 2026 2026-05-28
Q3 2026 saw net income rise 15% and net sales up 11.6%, with record gas volumes and strong digital growth. Membership fee income increased 10.7%, and executive memberships grew 9.6%. Continued investment in new warehouses, digital, and AI is expected to drive future growth.
Q2 2026 Q2 2026 2026-03-05
Q2 2026 saw net income rise 14% to $2.035B and net sales up 9.1% to $68.24B, with strong growth in membership, digital sales, and core-on-core margins. Expansion plans remain robust, while inflation and tariffs are being managed proactively.
Q1 2026 Q1 2026 2025-12-11
Q1 saw strong sales and membership growth, with net income up 13.6% (adjusted) and digital sales up 20.5% YoY. Expansion continues globally, with a focus on technology, AI, and member experience, while renewal rates dipped slightly due to more digital sign-ups.
Q4 2025 Q4 2025 2025-09-25
Q4 and FY25 saw strong sales and membership growth, with net sales up 8% and e-commerce up 15% year-over-year. Membership upgrades and new benefits drove engagement, while inflation and tariffs were managed through sourcing and efficiency. CapEx will rise in FY26 to support expansion.
Q3 2025 Q3 2025 2025-05-29
Q3 saw strong sales and earnings growth, with net income up 13% and comp sales up 5.7% (8% adjusted). Membership and digital engagement continued to rise, while inflation and tariffs remain key risks. Gross margin and e-commerce both improved year-over-year.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
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No Investment Recommendation:
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Information Sources:
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