Costco vs. Target: how they make money

• Shoppers buying goods and services · 98.1% of revenueNet sales from warehouses and online. Executive members, who pay a higher fee, made up about 75.2% of worldwide net sales in FY2026.
• Members paying yearly fees · 2.0% of revenue84.1 million paid members at Aug 30, 2026, including a small share whose memberships expired in the prior 12 months. The US fee is $65, or $130 for Executive.

• Shoppers (Target calls them guests) · 98.0% of revenuePeople buying merchandise in stores or through digital channels: 98.0% of FY2025 net sales ($102.7 billion).
• Advertisers · 0.9% of revenueVendors and marketplace sellers paying mostly for Roundel ads: 0.9% of FY2025 net sales ($915 million).
• TD Bank Group and others · 1.1% of revenueTD Bank Group's card profit sharing was 0.5% ($522 million). Others, such as marketplace sellers, paying members and tenants, were 0.6% ($626 million).

FY2026

FY2025 (year ended Jan 31, 2026)

Debt

$6.2B

Cash and investments

$21.3B

On Aug 30, 2026.

At Aug 30, 2026 Costco's cash and short-term investments exceeded its debt by $15.1 billion, up from $9.5 billion a year earlier.

Debt

$15.4B

Cash and investments

$5.4B

On Aug 1, 2026.

At Aug 1, 2026 Target's debt exceeded its cash by $9.9 billion, about 1.1 times the $8.7 billion of cash from operations in the prior four quarters, which include tariff refunds.

• One class of shares.
• Officers and directors as a group: 0.1% of shares (as of Nov 7, 2025).
• The Vanguard Group, Inc.: 9.8% (as of Nov 7, 2025).
• BlackRock, Inc.: 7.8% (as of Nov 12, 2025).
• Vanguard Capital Management LLC: 7.5% (as of Apr 29, 2026).

• One class of shares.
• Officers and directors as a group: 0.1% of shares (as of Apr 8, 2026).
• State Street Corp. (including as trustee of the Target 401(k) Plan): 7.9% (as of Dec 31, 2023).
• Vanguard Capital Management LLC: 7.5% (as of Mar 31, 2026).
• BlackRock, Inc.: 7.2% (as of Dec 31, 2023).
• 1 more holders on the Target page.

• Thin margins (pricing)Costco kept $3.85 of operating income per $100 of FY2026 revenue. Its 10-K says it may cut prices, or hold them despite higher costs, which lowers gross margin.
• Reliance on the US, Canada and California (customer or supplier concentration)The US and Canada made 86% of FY2026 net sales and 83% of operating income. California alone was 26% of US net sales.
• Gasoline price swings (commodity costs)Gasoline was 11% of FY2026 net sales. Higher gas prices added $3.5 billion to net sales. FY2026 gross margin was 11.09% of net sales, against 11.12% in FY2025.
• Currency moves (currency)292 warehouses, 31% of the total, were outside the US at FY2026 year end. Canada and Other International made 27.5% of FY2026 revenue. Currency changes added $1.3 billion to FY2026 net sales.

• Tariff refunds inside 2026 profit (other)Q2 FY2026 includes $994 million of refunds, which added 3.7 points to operating margin and $1.65 to EPS. Target has not recognized or estimated further claims, and its FY2026 guide excludes future refunds. CFO Jim Lee said on the Aug 19, 2026 call that the Q2 amount was most of the refunds applied for to date, and that Target expects some more.
• Reactions to social-issue positions (other)Target's FY2025 10-K names reactions to its 2023 Pride assortment. It also says its 2025 changes to diversity, equity and inclusion (DEI) initiatives drew adverse reactions and "consumer boycotts organized throughout 2025".
• Many kinds of rivals (competition)Target's 10-K lists omnichannel retailers, department stores, off-price retailers, wholesale clubs, drug stores, supermarkets, direct-to-consumer brands and online marketplaces as competitors. It names failing to stand out from them as a risk.
• Debt coming due (debt)Target had $15.4 billion of debt and $5.4 billion of cash at Aug 1, 2026. It listed $2.0 billion of principal due in 2026 and repaid $1.0 billion of notes in April 2026. Its credit facilities carry a leverage covenant, and Target says it complies. Long-term ratings it stated at Aug 28, 2026 are A2 from Moody's and A from S&P.