Consumer Staples · NASDAQ: COST
Costco: how the business works
Costco sells groceries, household goods and gasoline to paying members from 939 warehouses, with revenue of $303.2 billion in FY2026.
By Hardik Bhandare · Checked against filings:
Follow Costco
Email me when Costco's page is updated after earnings.
We'll send a confirmation email first. See our privacy policy.
Costco Wholesale Corporation · Issaquah, Washington · Founded 1983
Last updated
- Revenue, FY2026
- $303.2B
- Operating income, FY2026
- $11.7B
- Net income, FY2026
- $9.2B
- Paid members, Aug 30, 2026
- 84.1M
- Warehouses, Aug 30, 2026
- 939
The short version
Costco in 5 points
1 · What it sells
Costco sells food, household goods, gasoline and other products from 939 membership warehouses, with $297.2 billion of net sales in FY2026.
2 · Who pays it
In FY2026, shoppers buying goods and services paid 98.05% of revenue and members paying yearly fees paid 1.95%; Costco does not split sales between household and business members.
3 · What it keeps from $100
Of every $100 that came in during FY2026, Costco kept $3.04 as net income, including $711 million of interest and other income, a tariff refund benefit and net tax benefits of $83 million and $72 million, while operating income was $3.85 per $100 of revenue.
4 · Where the operating profit comes from
The United States earned 65.4% of FY2026 operating income on 72.5% of revenue, and Costco reports no separate profit on its $5.9 billion of membership fees.
5 · The one thing to watch
Membership fees grew 14.0% in Q1 FY2026 and 7.3% in Q4 FY2026, while the worldwide renewal rate was 89.7% and 89.8% in those quarters.
Sources: From Costco's FY2026 10-K and its Q1 and Q4 FY2026 earnings exhibits · checked
See the full receipt and the management scorecard below
01Where the money goes · FY2026
Where does $100 of Costco's money go?
Costco · FY2026
Receipt for every $100
| Merchandise costs | $87.0 |
|---|---|
| Running costs | $8.9 |
| Interest and tax | $1.0 |
| Kept as net income | $3.0 |
| Total | $100 |
Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.
How this is worked out
Cityfort calculation from FY2026 10-K. Of every $100 that came in during FY2026 (revenue plus interest income and other): each line = line ÷ $303.9 billion × 100. Net income was $3.04.
Each week: one company explained in 5 points, picked by earnings date.
Free, no tips, unsubscribe anytime.
We'll send a confirmation email. See our privacy policy.
02The business in one line
What does Costco do?
Members pay Costco a yearly fee, then buy food, household goods and gasoline from its warehouses; most of the money goes on the goods themselves, and about $3 of every $100 is left as profit.
- In FY2026, sales of goods and services were $297.2 billion, or 98.05% of revenue, and membership fees were $5.9 billion, or 1.95%.
- Of every $100 that came in during FY2026, merchandise costs took $86.97 and running costs $8.95. Net income was $3.04.
03Who pays it
Who pays Costco?
Shoppers buying goods and services
98%
of revenue
Net 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%
of revenue
84.1 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 buying goods and services98%
- Members paying yearly fees2%
How spread out the customers are
Costco sells to individual and business members. Its FY2026 10-K gives no figure for sales to any single customer, and does not split sales between household and business members.
04Why it makes money
Why does Costco make money?
Costco earns thin margins on a high volume of sales, and members pay a fee on top.
In FY2026 gross margin was 11.09% of net sales and running costs were 9.15%. Fees of $5.9 billion equal 50.6% of operating income, but that is only arithmetic: Costco does not report costs against them. The 10-K says, "We often sell inventory before we are required to pay for it."
Operating income per $100 of revenue
$3.4$3.9
FY2021 to FY2026
- Members pay a yearly fee
- A limited range of fewer than 4,000 active items per warehouse keeps stock moving
- Average sales per warehouse reached $292 million in FY2026
- Costco buys in volume and often sells goods before it pays for them
- Costco says this lets it run on lower gross margins than most retailers: 11.09% in FY2026
- Members renew: the worldwide rate was 89.8% at FY2026 year end
↺ Step 6 feeds back into step 1.
05Business segments · FY2026
Which businesses make up Costco?
United States
73%647 warehouses, including Puerto Rico. It earned 65.4% of FY2026 operating income, or $3.48 per $100 of its revenue.
Revenue $219.8B · Operating profit $7.6B
Canada
13%115 warehouses. It earned 18.0% of operating income, or $5.19 per $100 of its revenue.
Revenue $40.6B · Operating profit $2.1B
Other International
14%177 warehouses in 12 countries, led by Mexico and Japan. It earned 16.5% of operating income, or $4.51 per $100 of its revenue.
Revenue $42.8B · Operating profit $1.9B
How the mix changed
- United States
- Canada
- Other International
Revenue by segment, FY2021 to FY2026.
US$
See the numbers
06The numbers · Consolidated · US$
How has Costco done?
Revenue
$303.2BFY2026
Revenue rose every year, from $195.9 billion in FY2021 to $303.2 billion in FY2026; FY2023 had an extra week, and each Q4 has 16 weeks against 12 for other quarters.
US$
See the numbers
Net profit
$9.2BFY2026
Net income rose every year, from $5.0 billion in FY2021 to $9.2 billion in FY2026; FY2026 included net tax benefits of $83 million and $72 million, and Q4 FY2026 a $0.15 per share benefit from tariff refunds.
US$
See the numbers
Profit kept per $100 of revenue
$3.0FY2026
Net income per $100 of revenue was $3.04 in FY2026, up from $2.56 in FY2021, while operating income per $100 was $3.85, up from $3.42.
$ of profit per $100 of revenue (net margin)
See the numbers
Free cash flow
$9.4BFY2026
Cash from operations minus purchases of property and equipment was $9.4 billion in FY2026, up from $3.5 billion in FY2022, while those purchases rose to $6.4 billion.
US$ · cash from operations minus spending on plants and equipment
See the numbers
See all yearly numbers
EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (Sunday nearest the end of August; FY2026 ended Aug 30, 2026. Q1 to Q3 have 12 weeks each and Q4 has 16. FY2023 had 53 weeks.). Net profit is the share belonging to the company's owners. Total net income differs from net profit to the company's owners: Total net income includes the share of Costco's Taiwan joint-venture partner, whose stake Costco bought in June 2022.
Learn: Fiscal years that don't end in December: Nvidia's FY2027 explained · Stock-based compensation and dilution: pay that becomes shares
07Who runs it
Who runs Costco, and did they deliver?
Ron M. Vachris
President and Chief Executive Officer · since 2024
CEO since Jan 1, 2024. FY2025 total pay was $13.9 million, 283 times the median employee's $49,186.
Gary Millerchip
Executive Vice President and Chief Financial Officer · since 2024
CFO since Mar 15, 2024; previously Kroger's CFO.
Hamilton E. James
Non-executive Chairman · since 2017
Director since August 1988.
What they said, and what happened
4 partly delivered · 2 too early to tell
Said on Oct 5, 2022
Costco said it planned about $3.8–4.0 billion of FY2023 capital spending and up to 29 new warehouses, including 4 relocations.
Partly deliveredWhat happened
Spent $4.3 billion, above the range, and opened 26 including 3 relocations.
Said on Oct 11, 2023
Costco said it planned about $4.4–4.6 billion of FY2024 capital spending and up to 28 new warehouses, including 1 relocation.
Partly deliveredWhat happened
Spent $4.7 billion, above the range, and opened 30 including 1 relocation, above the plan.
Said on Oct 9, 2024
Costco said it planned FY2025 capital spending similar to FY2024's $4.7 billion and up to 29 new warehouses, including 3 relocations.
Partly deliveredWhat happened
Spent $5.5 billion and opened 27 including 3 relocations.
Said on Oct 8, 2025
Costco said it planned $6.0–6.5 billion of FY2026 capital spending and up to 35 new warehouses, including 5 relocations.
Partly deliveredWhat happened
Spent $6.4 billion, within the range, and opened 28 including 3 relocations. The year ended with 939 warehouses, against the 944 estimated in September 2025.
Said on Oct 7, 2026
Costco said it intends to spend about $7.5 billion of FY2027 capital and plans up to 33 new warehouses, including 5 relocations.
Too early to tellWhat happened
FY2027 results are not out yet.
Said on Oct 7, 2026
Costco said it intends to keep investing the majority of its tariff refunds in increased value for members.
Too early to tellWhat happened
It received $184 million of refunds in FY2026 and $155 million after year end. The net effect on FY2026 gross margin was +3 basis points (0.03 percentage points).
08What could go wrong
What could go wrong for Costco?
- Pricing
Thin margins
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.
Watch Gross margin and running costs as a share of net sales in each release.
- Concentration
Reliance on the US, Canada and California
The US and Canada made 86% of FY2026 net sales and 83% of operating income. California alone was 26% of US net sales.
Watch Segment revenue and operating income in each 10-Q and 10-K.
- Demand
Membership growth and renewals
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.
Watch Renewal rate, paid members and membership fee growth each quarter.
- Regulation
Tariffs and tariff refund suits
The 10-K says higher tariffs are more likely to hurt than help results. Costco paid about $500 million under IEEPA tariffs, which the Supreme Court ruled unlawful in February 2026. Four class actions from March 2026 allege those tariffs were passed on through higher prices and seek refunds; one court denied a motion to dismiss on Jul 17, 2026.
Watch Tariff and refund notes in each 10-Q and 10-K.
- Raw-material prices
Gasoline price swings
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.
Watch Comparable sales with and without gasoline, in each release.
- Legal
Lawsuits
A class action alleges Costco barred lower-paid Washington workers from second jobs; trial is set for Mar 1, 2027. Other suits allege wage violations, privacy violations from website trackers and mislabeled Kirkland Signature tequila. Opioid cases remain pending, and Costco is defending them. Costco does not expect a material adverse effect overall, but says a charge could be material to one quarter or year.
Watch Legal proceedings note in each 10-Q and 10-K.
- Execution
Finding sites for new warehouses
The 10-K says growth depends partly on acquiring property, and Costco competes with others for locations. Purchases of property and equipment rose from $4.3 billion in FY2023 to $6.4 billion in FY2026.
Watch Warehouse openings against the plan of up to 33 in FY2027, stated in the Oct 7, 2026 10-K.
- Currency
Currency moves
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.
Watch Growth excluding currency moves against reported growth, in each release.
09Both sides
What do supporters and critics point to?
What supporters point to
- Revenue rose every year from $195.9 billion in FY2021 to $303.2 billion in FY2026, and net income from $5.0 billion to $9.2 billion.
- Paid members rose from 61.7 million at the end of FY2021 to 84.1 million at the end of FY2026.
- The renewal rate was 92.3% in the US and Canada and 89.8% worldwide at the end of FY2026.
- Cash and short-term investments exceeded debt by $15.1 billion at Aug 30, 2026.
- Operating income per $100 of revenue rose from $3.42 in FY2021 to $3.85 in FY2026.
What critics point to
- Costco kept $3.04 of net income per $100 of FY2026 revenue, so margins are thin.
- Membership fee growth fell from 14.0% in Q1 FY2026 to 7.3% in Q4 FY2026.
- Higher gasoline prices added $3.5 billion to FY2026 net sales, out of a total increase of $27.3 billion.
- Q4 FY2026 net income of $3.00 billion included a benefit of $0.15 per diluted share from tariff refunds, which Costco called non-recurring.
- The US and Canada made 83% of FY2026 operating income, and California was 26% of US net sales.
10What to watch next
What should you watch next at Costco?
Next event
Q1 FY2027 results
Date not announced yet.
Membership fee growth and renewals
Fee growth was 7.3% in Q4 FY2026, and the worldwide renewal rate was 89.8%, against 89.7% in Q1. The Sep 2024 fee rise was about 30% of FY2026 fee growth.
Tariff refunds
Costco's Oct 7, 2026 10-K says it received $155 million after FY2026 year end and intends to invest the majority in value for members. Four class actions over those tariffs are pending.
Warehouse plan
Costco's Sep 24, 2026 supplement estimated 967 warehouses at FY2027 year end, up from 939. Its Oct 7, 2026 10-K says it intends to spend about $7.5 billion of capital.
11Key dates
What are the key dates for Costco?
| Event | Date | Source |
|---|---|---|
| Quarterly dividend of $1.47 payableTo holders of record on Oct 30, 2026. | Form 8-K, Oct 14, 2026: quarterly dividend (Ex. 99.1 press release) | |
| Annual meeting of shareholdersThe proxy statement for this meeting had not been filed by Nov 1, 2026. | Form 10-K for fiscal year 2026 (ended Aug 30, 2026); EDGAR submissions index for CIK 0000909832 | |
| Buyback authorization expiresJanuary 2027; $1.1 billion was left at FY2026 year end. | Not yet stated | Form 10-K for fiscal year 2026 (ended Aug 30, 2026) |
| Trial in the second-job class action (Gray v. Costco) | Form 10-K for fiscal year 2026 (ended Aug 30, 2026) | |
| $2.25 billion of Senior Notes mature$1.0 billion in May 2027 and $1.25 billion in June 2027. | Not yet stated | Form 10-K for fiscal year 2026 (ended Aug 30, 2026) |
Learn: IPO lock-up agreements: what they are and when they end
12Key facts
Key facts about Costco
- What is Costco's business model, and who are its customers?
- Costco runs 939 membership warehouses that sell a limited range of goods to 84.1 million paid members (Aug 30, 2026). Costco's FY2026 10-K says low prices on a limited selection produce high sales volumes and rapid inventory turnover, letting it operate at lower gross margins than most retailers.
- How does Costco make money?
- Costco made $303.2 billion of revenue in FY2026 (year ended Aug 30, 2026): $297.2 billion from selling goods and services and $5.9 billion from membership fees. After merchandise and running costs, operating income was $11.7 billion.
- Is Costco profitable?
- Yes. Costco's net income was $9.2 billion in FY2026, up from $8.1 billion in FY2025. Its operating income was $11.7 billion in FY2026, or $3.85 per $100 of revenue.
- What is Costco's revenue by segment?
- Costco's FY2026 revenue of $303.2 billion came from the United States ($219.8 billion, 72.5%), Canada ($40.6 billion, 13.4%) and Other International ($42.8 billion, 14.1%).
- Who owns Costco?
- Costco's Dec 4, 2025 proxy statementThe yearly filing about shareholder votes, the board and executive pay. Learn more lists Vanguard with 9.79% and BlackRock with 7.83% of the shares, based on November 2025 Form 13F filings. Directors and executive officers as a group held under 1% as of Nov 7, 2025.
- How much does Costco earn from membership fees?
- Costco's membership fees were $5.9 billion in FY2026, up from $5.3 billion in FY2025, or 1.95% of revenue. The US fee is $65 a year, or $130 for an Executive membership.
- How much does Costco sell in Foods and Sundries?
- Costco's Foods and Sundries category had net sales of $116.8 billion in FY2026, or 39.3% of net sales. It includes dry grocery, candy, cooler and freezer items, liquor and tobacco.
- How much does Costco sell in Non-Foods?
- Costco's Non-Foods category had net sales of $77.4 billion in FY2026, or 26.0% of net sales. It includes electronics, appliances, health and beauty aids, hardware, apparel and furniture.
- How much does Costco sell in Fresh Foods?
- Costco's Fresh Foods category had net sales of $41.7 billion in FY2026, or 14.0% of net sales. It includes meat, produce, deli and bakery.
- How much of Costco's sales come from gasoline and other ancillary businesses?
- Costco's Warehouse Ancillary and Other category had net sales of $61.4 billion in FY2026, or 20.6% of net sales. Gasoline alone was 11% of net sales. The category also includes pharmacy, food courts, optical and travel.
Go deeper
More detail from the same filings. Open any section.
13What it sells
13What it sells
What does Costco sell?
Foods and Sundries ($116.8B in FY2026)
Dry grocery, candy, cooler and freezer items, liquor, tobacco and sundries. 39.3% of net sales.
Non-Foods ($77.4B)
Electronics, appliances, health and beauty aids, hardware, tires, toys, apparel, furniture and jewelry. 26.0% of net sales.
Warehouse Ancillary and Other ($61.4B)
Gasoline, pharmacy, food courts, optical, hearing aids, tire installation and travel. 20.6% of net sales; gasoline alone was 11%.
Fresh Foods ($41.7B)
Meat, produce, deli and bakery. 14.0% of net sales.
Membership fees ($5.9B)
Yearly fees from members, reported separately from net sales. They were 1.95% of revenue.
What it does
- Does: Sells national brands and its own private label, Kirkland Signature
- Does: Carries fewer than 4,000 active items per warehouse, and 9,000 to 11,000 online
- Does: Runs 774 gas stations, plus pharmacies, food courts and optical shops
- Does: Sells through e-commerce sites as well as warehouses; digitally-enabled sales were 11% of FY2026 net sales
What it does not do
- Does not: Does not report what share of sales comes from Kirkland Signature
- Does not: Does not report a separate profit figure for membership fees
- Does not: Does not get a significant portion of its merchandise from any one supplier
14How the money flows
14How the money flows · FY2026
How does money flow through Costco?
Money in
- Net sales (goods and services)$297.2B
- Membership fees$5.9B
- Interest income and other, net$711M
The company
Costco
$303.9B came in
Money out
- Merchandise costs$264.3B
- Running costs (selling, general and administrative)$27.2B
- Interest expense$145M
- Income tax$3.0B
- Net income$9.2B
- Shoppers and members paid Costco $303.2 billion in FY2026: $297.2 billion for goods and services, $5.9 billion in fees.
- The goods themselves took most of it: merchandise costs were $264.3 billion.
- Running the warehouses and head office took $27.2 billion. Staff pay and benefits are Costco's largest cost after merchandise.
- That left $11.7 billion of operating income; interest income and other items added $711 million.
- After $145 million of interest and $3.0 billion of tax, $9.2 billion was left as net income.
15What it needs to run
15What it needs to run
What does Costco need to run?
Warehouses
939 at Aug 30, 2026: 647 in the US and Puerto Rico, 115 in Canada and 177 elsewhere. Costco owned the land and building at 755 of them.
People
355,000 employees at FY2026 year end, about 5% represented by unions. Average US hourly pay was about $33.00.
Suppliers
Costco buys most goods directly from suppliers and routes them to its depots or directly to warehouses. Accounts payable were $22.6 billion against inventories of $19.3 billion at Aug 30, 2026.
Land and capital spending
Purchases of property and equipment were $6.4 billion in FY2026, up from $3.6 billion in FY2021.
16Competitors and what protects it
16Competitors and what protects it
Who does Costco compete with?
Walmart, including Sam's Club
Named in Costco's 10-K for both. Walmart's fiscal 2026 10-K (year ended Jan 31, 2026) reports 601 Sam's Club clubs in 44 states and Puerto Rico, and $93.0 billion of Sam's Club US net sales.
BJ's Wholesale Club
Named in Costco's 10-K as a rival warehouse club. BJ's fiscal 2025 10-K (year ended Jan 31, 2026) reports 263 clubs, $21.0 billion of net sales and $500 million of membership fees.
Target
Named in Costco's FY2026 10-K as a significant general merchandise competitor in the US.
Kroger
Named in Costco's FY2026 10-K as a significant general merchandise competitor in the US.
Amazon
Named in Costco's FY2026 10-K as a significant general merchandise competitor in the US.
What protects the business
Each strength is scored 1 (weak) to 5 (strong) for the business, with the reason. It is not a rating of the share.
- Member loyalty4 of 5
At the end of FY2026 the renewal rate was 92.3% in the US and Canada and 89.8% worldwide, and paid members reached 84.1 million.
- Buying scale4 of 5
FY2026 net sales were $297.2 billion. Sam's Club US reported $93.0 billion and BJ's $21.0 billion for years ended Jan 31, 2026.
- Limited selection and fast turnover4 of 5
Costco carries fewer than 4,000 active items per warehouse, and average sales per warehouse were $292 million in FY2026.
- Suppliers fund the stock3 of 5
Accounts payable of $22.6 billion exceeded inventories of $19.3 billion at Aug 30, 2026, though not in FY2022.
Weak spot
Thin margins
Merchandise and running costs took $96.15 of every $100 of FY2026 revenue, leaving $3.85 of operating income. Costco can also choose to absorb cost increases instead of raising prices.
17Where growth could come from
17Where growth could come from
Where could Costco's growth come from?
Costco said in its FY2026 10-K (Oct 7, 2026) that it intends to spend about $7.5 billion on capital expenditures in FY2027 and plans to open up to 33 new warehouses, including five relocations. Its Sep 24, 2026 supplement estimated 967 warehouses at FY2027 year end. The releases on this page give no revenue or earnings guidance.
New warehouses
Mixed939, up from 914
Costco added 25 net warehouses in FY2026. It opened 28, including 3 relocations, against a plan of up to 35 including 5 relocations.
Status: Mixed, partly on track.
Paid membership
Mixed84.1M, up from 81.0M
Membership fee growth fell from 14.0% in Q1 FY2026 to 7.3% in Q4. The Sep 2024 fee rise was about 40% of FY2025 fee growth and about 30% of FY2026's.
Status: Mixed, partly on track.
Executive memberships
Working42.3M, up from 38.7M
Executive members pay a higher fee and earn a reward, generally 2%. They made up about 75.2% of worldwide net sales in FY2026, up from about 73.6%.
Status: Working, on track against what the company said.
Digitally-enabled sales
Working11% of FY2026 net sales
Costco's releases switched from e-commerce comparable sales to this wider measure in Q1 FY2026, so the two do not compare.
Status: Working, on track against what the company said.
Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.
18The company's own measures (non-GAAP)
18The company's own measures · FY2026 and Q4 FY2026
What do Costco's own measures show?
Official (GAAP): Net sales growth, FY2026 (Cityfort calculation from FY2026 10-K)
10.1%
Company's own measure: Comparable sales growth, FY2026
8.4%
Costco's measure of net sales from warehouses open more than one year, including remodels, relocations and expansions. Costco calls it supplemental information, not a substitute for net sales.
Official (GAAP): Net sales growth, FY2026 (Cityfort calculation from FY2026 10-K)
10.1%
Company's own measure: Comparable sales growth excluding gasoline prices and currency moves, FY2026
6.6%
The same measure, leaving out changes in gasoline prices and foreign-currency rates.
Official (GAAP): Net sales growth, FY2026 (Cityfort calculation from FY2026 10-K)
10.1%
Company's own measure: Digitally-enabled comparable sales growth, FY2026
20.9%
Sales started on a digital device, fulfilled through a warehouse, distribution center or Costco Travel operating for more than one year.
Official (GAAP): Reported net income growth, Q4 FY2026
14.9%
Company's own measure: Net income growth excluding tariff refunds, Q4 FY2026
12.3%
Costco's own figure, leaving out a benefit of $0.15 per diluted share from tariff refunds, after the part reinvested in prices.
Official (GAAP): Reported diluted earnings per share growth, Q4 FY2026
15.0%
Company's own measure: Diluted earnings per share growth excluding tariff refunds, Q4 FY2026
12.4%
Same adjustment. Reported Q4 diluted earnings per share were $6.75, against $5.87 a year earlier.
Official (GAAP): Reported net sales growth, Q4 FY2026
11.2%
Company's own measure: Comparable sales growth excluding gasoline prices and currency moves, Q4 FY2026
6.7%
Same measure for the quarter. Comparable sales growth before these exclusions was 9.4%.
Official (GAAP): Gross margin on net sales, FY2026
11.1%
Company's own measure: Gross margin excluding gasoline price inflation, FY2026
11.2%
Costco's own figure, 11.22% against 11.09% as reported, removing the effect of higher gasoline prices on net sales.
Official (GAAP): Reported membership fee growth, Q4 FY2026
7.3%
Company's own measure: Membership fee growth excluding currency moves, Q4 FY2026
7.7%
Costco's own figure, removing the effect of exchange-rate changes.
Official (GAAP)
No official figure measures this; it is the company's own operating measure.
Company's own measure: Paid members, Aug 30, 2026
84.1 million
Includes memberships that expired in the prior 12 months, a small percentage. The nearest GAAP line is membership fees: $5.9 billion in FY2026.
Official (GAAP)
No official figure measures this; it is the company's own operating measure.
Company's own measure: Renewal rate, worldwide, FY2026 year end
89.8 %
A trailing calculation of renewals 7 to 18 months before the reporting date. The rate was 92.3% in the US and Canada.
These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.
Sources
Form 10-K for fiscal year 2026 (ended Aug 30, 2026); Form 8-K Exhibit 99.1: Q4 FY2026 earnings release; Form 8-K Exhibit 99.2: Q4 FY2026 supplemental information
Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out
19Financial strength and debt
19Financial strength · Aug 30, 2026
How much debt does Costco have?
- Total debt$6.2B
- Cash and investments$21.3B
- Net cash (cash minus debt)$15.1B
- Net worth (shareholders' money)$35.8B
- Debt to equity
- 0.17×
- $ of debt for every $1 of shareholders' money
- Debt is long-term debt at carrying value, including $2,248 million due within a year. Net figures are a Cityfort calculation from FY2026 10-K.
- Lease liabilities of $4.0 billion are separate and not counted as debt here.
- Senior Notes of $2.25 billion mature in May and June 2027.
- Cash includes $2.8 billion of unsettled credit and debit card receivables, as Costco classifies them.
20Who owns it
20Who owns it · ownership as of Nov 7, 2025
Who owns Costco?
- Officers and directors (as a group), shares
- 0.1%
Share classes
Holders of 5% or more
From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.
Sources
Form 10-K for fiscal year 2026 (ended Aug 30, 2026); Definitive proxy statement (DEF 14A) for the Jan 15, 2026 annual meeting; Schedule 13G/A (Amendment No. 10), The Vanguard Group, event Mar 13, 2026 and 1 more
Learn: How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes
21What it does with profit
21What it does with profit
What does Costco do with its profit?
Dividend per share
$5.54FY2026
Dividend paid for each share, by financial year.
$ per share
See the numbers
Buyback · Sep 3, 2023
FY2023: bought back 1,341,000 shares at an average of $504.68.
$677M
Buyback · Sep 1, 2024
FY2024: bought back 1,004,000 shares at an average of $695.29.
$698M
Buyback · Aug 31, 2025
FY2025: bought back 943,000 shares at an average of $957.66.
$903M
Buyback · Aug 30, 2026
FY2026: bought back 891,000 shares at an average of $950.90.
$847M
22Governance signals
22Governance signals
What do Costco's governance filings show?
- Auditor
- KPMG LLP, since 2002
- Auditor changes
- None in the period covered
- Audit qualifications
- None reported
- Related-party dealings
- The Dec 4, 2025 proxy lists five relatives of executives employed at Costco, each paid between $113,038 and $251,480. A former executive's son earned about $204,282 in commission from a vendor that sold Costco about $8.6 million of goods. The Audit Committee approved these.
- Credit rating
- No public credit rating found
Flags to know about
disclosure
What Costco does not report
The filings give no gross margin by segment, no separate profit on membership fees and no Kirkland Signature share of sales. Costco files no earnings-call transcripts with the SEC; its earnings release points to a webcast.
regulatory
Privacy inquiries
Related to suits over website pixel trackers, Costco received civil investigative demands from the Washington Attorney General's Office in 2024 and a pre-litigation letter from the Los Angeles Office of the County Counsel. Costco is responding to both.
other
No shares used as collateral
Costco's policy bars directors and executive officers from using company shares as collateral, and bars directors, officers and employees from hedging them.
other
Pay vote, January 2026
At the Jan 15, 2026 annual meeting, 251,441,227 votes were cast for executive pay and 34,380,984 against. All 10 director nominees were elected.
23What the market paid
23What the market paid · price as of Oct 30, 2026
What did the market pay for Costco on Oct 30, 2026?
Price as of Oct 30, 2026 (shown for education; prices change daily).
Price as of Oct 30, 2026: Costco closed at $1,012.28 on Nasdaq. Times 443.13 million shares (Sep 29, 2026) that is a market value of about $448.6 billion (Cityfort calculation from the Oct 30, 2026 Nasdaq closing price and the FY2026 10-K cover). P/E is price ÷ earnings per share: 48.8 on FY2026 diluted EPS of $20.76. Dividend yield as of the same date: 0.58%, on $5.88 of annualized dividends.
- Share price
- $1,012.28
- Market value (market cap)
- $448.6B
- P/E
- 48.8×
Source: Nasdaq historical quotes for COST (closing price Oct 30, 2026); Form 10-K for fiscal year 2026 (ended Aug 30, 2026); Form 8-K, Apr 15, 2026: quarterly dividend raised to $1.47
24How it got here
24How it got here
How did Costco get here?
1983
Milestone
First operations in Seattle
Costco began operations in Seattle, Washington.
2022
Milestone
Bought out its Taiwan partner
Costco paid $842 million for its joint-venture partner's stake in Taiwan in June 2022.
2023
Crisis
Ended charter shipping
FY2023 included $391 million of charges, mostly from discontinuing charter shipping.
2024
Milestone
New CEO and CFO
Ron Vachris became CEO on Jan 1, 2024. Gary Millerchip became CFO on Mar 15, 2024.
2024
Milestone
$15 special dividend
Costco paid a $15.00 per share special dividend, about $6.7 billion, on Jan 12, 2024.
2024
Business-model change
Membership fee raised
US and Canada fees rose on Sep 1, 2024; in the US, from $60 to $65, and Executive from $120 to $130. Fee growth reached 14.0% in Q4 FY2025.
2026
Milestone
Tariff refunds
After the Supreme Court ruling of February 2026, Costco received $184 million of refunds in FY2026 and $155 million more after year end.
25Sources and changes
Where every number on this page comes from
Sources (30 documents)
- S1Form 10-K for fiscal year 2026 (ended Aug 30, 2026) · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Oct 7, 2026
- S2Form 10-K for fiscal year 2025 · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Oct 8, 2025
- S3Form 10-K for fiscal year 2024 · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Oct 9, 2024
- S4Form 10-K for fiscal year 2023 (53 weeks) · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Oct 11, 2023
- S5Form 10-K for fiscal year 2022 · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Oct 5, 2022
- S6Form 10-Q for the quarter ended May 10, 2026 (Q3 FY2026) · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jun 3, 2026
- S7Form 10-Q for the quarter ended Feb 15, 2026 (Q2 FY2026) · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Mar 11, 2026
- S8Form 10-Q for the quarter ended Nov 23, 2025 (Q1 FY2026) · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Dec 17, 2025
- S9Form 10-Q for the quarter ended May 11, 2025 (Q3 FY2025) · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jun 5, 2025
- S10Form 10-Q for the quarter ended Feb 16, 2025 (Q2 FY2025) · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Mar 13, 2025
- S11Form 10-Q for the quarter ended Nov 24, 2024 (Q1 FY2025) · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Dec 19, 2024
- S15Form 8-K Exhibit 99.1: Q4 FY2026 earnings release · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Sep 24, 2026
- S16Form 8-K Exhibit 99.2: Q4 FY2026 supplemental information · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Sep 24, 2026
- S21Form 8-K Exhibit 99.1: Q1 FY2026 earnings release · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Dec 11, 2025
- S23Form 8-K Exhibit 99.1: Q4 FY2025 earnings release · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Sep 25, 2025
- S24Form 8-K Exhibit 99.2: Q4 FY2025 supplemental information · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Sep 25, 2025
- S28Form 8-K Exhibit 99.2: Q2 FY2025 supplemental information · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Mar 6, 2025
- S32Definitive proxy statement (DEF 14A) for the Jan 15, 2026 annual meeting · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Dec 4, 2025
- S33Schedule 13G/A (Amendment No. 10), The Vanguard Group, event Mar 13, 2026 · The Vanguard Group (SEC EDGAR) · Tier 1: company or exchange filing · Mar 26, 2026
- S34Schedule 13G, Vanguard Capital Management LLC, event Mar 31, 2026 · Vanguard Capital Management LLC (SEC EDGAR) · Tier 1: company or exchange filing · Apr 29, 2026
- S36Form 8-K, Oct 14, 2026: quarterly dividend (Ex. 99.1 press release) · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Oct 14, 2026
- S37Form 8-K, Apr 15, 2026: quarterly dividend raised to $1.47 · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Apr 15, 2026
- S38Form 8-K, Jan 21, 2026: annual meeting vote results · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jan 21, 2026
- S43Form 8-K, Feb 9, 2024: CFO transition to Gary Millerchip · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Feb 9, 2024
- S44Form 8-K, Dec 14, 2023: $15 per share special dividend · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Dec 14, 2023
- S45Form 8-K, Oct 20, 2023: CEO transition to Ron Vachris · Costco Wholesale Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Oct 20, 2023
- S46Nasdaq historical quotes for COST (closing price Oct 30, 2026) · Nasdaq · Tier 1: company or exchange filing · Oct 30, 2026
- S48EDGAR submissions index for CIK 0000909832 · SEC EDGAR · Tier 1: company or exchange filing · Nov 1, 2026
- S49Walmart Inc. Form 10-K for fiscal 2026 (ended Jan 31, 2026) · Walmart Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Mar 13, 2026
- S50BJ's Wholesale Club Holdings, Inc. Form 10-K for fiscal 2025 (ended Jan 31, 2026) · BJ's Wholesale Club Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Mar 12, 2026
Changes to this page (v2 · Nov 1, 2026)
- v2 · Nov 1, 2026Standardized calculation labels to name the filing they come from; no figures changed. (editorial update, Q4 FY2026)
- v1 · Nov 1, 2026First version, through Q4 FY2026 (quarter ended Aug 30, 2026). (first version)
Numbers come only from tier 1 and tier 2 sources. Read how we research.
Disclaimer
For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.
Investing in securities involves risk, including loss of capital. Before making any investment decision, do your own research and consider consulting a registered investment adviser or other qualified professional.
Cityfort, its owners and contributors may or may not hold securities of companies covered. Cityfort is not paid by any company it covers. Content is not an offer or solicitation to buy or sell any security, including in any initial public offering.
Read the positions policyRead the full disclaimerHide the full disclaimer
Cityfort publishes general educational content that explains how listed companies work. Cityfort is not registered with the US Securities and Exchange Commission or any state securities regulator as an investment adviser, and is not a broker-dealer or a member of FINRA. Cityfort does not provide investment, tax or legal advice, recommendations, ratings, price targets or any opinion on whether to buy, sell or hold any security. Nothing on the site is tailored to any person's circumstances.
All information is taken from publicly available sources, mainly company filings with the SEC, which are listed on each page with dates. We work to keep it accurate and correct errors publicly, but we do not guarantee that it is complete, accurate or up to date. Any market price or price-based ratio shown is dated, may be out of date by the time you read it, and is included only to explain concepts.
Statements by company management, including forward-looking statements and guidance, are reported as the company's statements, with their date and source; they are not our forecasts. Adjusted (non-GAAP) figures are the company's own measures and are shown next to the official (GAAP) figures.