Costco vs. Walmart: 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.

• Walmart U.S. customers · 68.4% of revenueShoppers at Walmart and Neighborhood Market stores, and on walmart.com. The segment's net sales were $483.0 billion in FY2026.
• Walmart International customers · 18.5% of revenueShoppers outside the US. The segment's net sales were $130.4 billion in FY2026.
• Sam's Club U.S. customers · 13.2% of revenuePeople shopping at the membership clubs. The segment's net sales were $93.0 billion in FY2026.
• AdvertisersBrands paying for ads, nearly $6.4 billion in FY2026. Walmart gives no share because ads sit in net sales or reduce cost of sales.
• MembersMembership fees exceeded $4.3 billion in FY2026, management said. They are part of $6.75 billion of membership and other income, which sits outside net sales.

FY2026

FY2026

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

$57.2B

Cash and investments

$11.5B

On Jul 31, 2026.

At Jul 31, 2026 Walmart's debt exceeded its cash by $45.7 billion, about 1.1 years of its cash from operations in the 12 months to that date ($42.9 billion).

• 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 10, 2026).
• Walton Enterprises, LLC: 44.1% (as of Apr 10, 2026).
• Walton Family Holdings Trust: 6.4% (as of Apr 10, 2026).

• 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.
• Membership growth and renewals (demand)The 10-K says growth in members and high renewal rates materially influence profit. The worldwide renewal rate fell from 90.5% in Q2 FY2025 to 89.8% in Q4 FY2026; Costco attributes this to international growth and digital sign-ups.
• 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.

• Q2 FY2027 profit includes tariff refunds (other)Walmart received about $2.9 billion of tariff refunds in Q2 FY2027, recorded as a reduction to cost of sales. Walmart said a significant portion went into price and cost mitigation, and that price investment continues through FY2027. It gives no dollar amount for that investment.
• Net income moves with investment values (other)Other gains and losses swung from a $2.7 billion gain in Q2 FY2026 to a $2.1 billion loss in Q4 FY2026. In Q2 FY2027 net income fell 9.4% while operating income rose 28.8%, with a $1.2 billion loss on this line.
• Capital spending and debt have risen (debt)Purchases of property and equipment rose from $13.1 billion in FY2022 to $26.6 billion in FY2026, and Walmart now states about 4.0% of net sales for FY2027. Total debt reached $57.2 billion at Jul 31, 2026, up from $50.3 billion a year earlier.
• Competition across stores and online (competition)Walmart's 10-K lists competition among its risk factors, naming rival types from discount and dollar stores to online and social commerce sellers. Operating income was $4.18 per $100 of total revenues in FY2026.
• One family's entities hold about 44% of the shares (governance)Walton Enterprises held 44.11% on Apr 10, 2026, with one vote per share. Two Walton family members sat on the board, according to the 2026 proxy, and the board has not determined the independence of Greg Penner or Steuart Walton.