Costco Ends Its Fiscal Year on a High Note, Eyes Big Expansion

Costco reported fiscal Q4 2026 earnings per share of $6.75 and revenue of $95.72 billion, both topping analyst estimates and lifting shares about 2.5%. Growth in pharmacy, gas, and membership segments, including a 9.4% rise in executive members, drove Costco's strong quarterly performance despite tariff-related cost pressures. Costco plans to open 33 new warehouses in fiscal 2027 as analysts maintain a Moderate Buy rating with a $1,047 price target implying roughly 14% upside.

When Costco NASDAQ: COST reported Q4 2026 earnings on Thursday, Sept. 24, its results demonstrated that consumer demand remains strong despite notable headwinds. The membership-based warehouse club posted earnings per share (EPS) of $6.75, topping the consensus estimate of $6.54, while revenue of $95.72 billion topped analyst expectations for $94.97 billion.

While shares remained flat in after-hours trading following the report, they climbed up about 2.5% by late Friday morning. The upshot for investors is that the company continues to successfully navigate a convoluted tariff landscape and subsequent cost pressures while still providing consumers with the savings that justify their memberships.

The EPS beat was the fifth in six quarters, while the revenue beat was Costco’s seventh in a row. In his earnings call comments, CEO Ron Vachris highlighted how the company’s success was driven by nearly 20% growth in its pharmacy business, specifically through that segment’s digital capabilities, as well as its fertility and obesity drug offerings. “ We increased member value and convenience through our GLP-1 and fertility programs, as well as digital options like Rx mobile pay ahead and pickup lockers,” Vachris said. “Many [Costco] U.S. buildings are now achieving Rx pay-ahead penetrations of more than one-third of prescriptions, saving both members and our employees valuable time.” Vachris added that those programs contributed to double-digit prescription growth for fiscal 2026, more than offsetting the headwinds from lower prices as a result of Medicare maximum fair price changes.

Another driver of the strong quarterly results was the company’s fuel segment. Vachris noted that Costco’s “gas business has had a record year, driven by members seeking value…in the face of rising prices.” For the year, the company estimates it saved members over $3.2 billion versus the average price at the pump in markets where it operates.

Membership growth was also strong. Paid members increased 3.8% to 84.1 million, while executive members grew 9.4% to 42.3 million. Importantly, renewal rates in the United States and Canada improved to 92.3%, with management eyeing engagement among younger members and growth in gas, digital channels, and executive memberships as potential drivers of higher future spending. Together, those factors helped fuel a strong Q4 performance.

Costco’s net sales increased 11.2% to $93.87 billion, while comparable sales increased 9.4% (6.7% excluding gas and foreign exchange). Adjusted for the 15-cent per share tariff-refund benefit, diluted EPS still managed to grow by more than 12% year over year.

In Q4, Costco added 12 warehouses, including a relocation in Taiwan,...