Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Costco delivered a strong fiscal Q4 2025 with revenue of $67.3B (+8.3% YoY), net income of $2.0B (+11.3% YoY), and operating cash flow surging 43.8% to $4.7B, reflecting continued membership-driven growth and disciplined cost management.
Revenue
$67.31B
+8.30% YoY
EPS (Diluted)
$4.50
+11.39% YoY
Operating Income
$2.46B
+12.16% YoY
Source: SEC XBRL
Costco Wholesale (COST) reported Q1 FY2026 revenue of $67.31B, up 8.3% year over year. Operating margin was 3.7%, up 0.2 points from 3.5% a year earlier. Operating cash flow was $4.69B, up 43.8% year over year. COST's fiscal Q1 FY2026 corresponds to calendar Q4 2025.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 4.93 | 5.03 | Miss -1.9% |
| Mar 2026 | 4.58 | 4.65 | Miss -1.5% |
| Dec 2025This filing | 4.50 | 4.36 | Beat +3.3% |
| Sep 2025 | 5.87 | 5.92 | Miss -0.8% |
Reported EPS of $4.50 versus the $4.36 analyst consensus — a +3.3% beat for Dec 2025.
Compiled by AI from this SEC filing
Total revenue reached $67.3B in Q4 2025, up 8.3% YoY from $62.2B, indicating robust comparable store sales performance and continued expansion of Costco's warehouse footprint globally.
Source: 10-Q Income Statement (Financial Data)
Operating income grew 12.2% YoY to $2.46B, faster than the 8.3% revenue growth, suggesting improving operational leverage as fixed costs are spread over a larger revenue base. Operating margin expanded modestly to 3.66% from 3.53%.
Source: 10-Q Income Statement (Financial Data)
Operating cash flow surged 43.8% YoY to $4.69B, while cash and equivalents jumped 48.7% to $16.2B, reflecting strong earnings quality and working capital efficiency — a hallmark of Costco's high-inventory-turnover model.
Source: 10-Q Cash Flow Statement (Financial Data)
SG&A expenses increased 8.3% YoY to $6.33B, matching the revenue growth rate, indicating management's ability to maintain cost discipline even as the company scales its operations and headcount.
Source: 10-Q Income Statement (Financial Data)
Stockholders' equity grew 23.9% YoY to $30.3B, supported by strong net income retention and a modest share buyback program of $210M, reinforcing the balance sheet's strength.
Source: 10-Q Balance Sheet (Financial Data)
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
Costco's operating margin of 3.66% and net margin of 2.97% are structurally thin due to its low-price, high-volume business model. Any unexpected cost inflation in labor, logistics, or merchandise could disproportionately compress profitability. A 50 basis point margin decline would represent a meaningful percentage drop in net income.
Source: 10-Q Income Statement (Financial Data)
Costco's profitability is heavily reliant on membership fee income, which underpins its ability to offer low merchandise prices. Any slowdown in membership renewal rates or new member acquisition — particularly in international markets — could materially impact earnings quality.
Source: 10-Q Income Statement (Financial Data)
The current ratio of 1.04 indicates that current assets barely exceed current liabilities ($43.4B vs. $41.8B). While this is typical for large retailers with fast inventory turnover, it leaves limited buffer against unexpected short-term cash demands or economic disruptions.
Source: 10-Q Balance Sheet (Financial Data)
The debt-to-equity ratio stands at 1.73, reflecting meaningful financial leverage. While long-term debt declined slightly to $5.67B, total liabilities of $52.5B against equity of $30.3B means the balance sheet carries notable obligations that could constrain flexibility in a downturn.
Source: 10-Q Balance Sheet (Financial Data)
Investing cash outflows increased 41.9% YoY to -$1.4B, reflecting accelerating capital deployment for new warehouse openings and infrastructure. Sustained expansion could pressure free cash flow if operating cash flow growth moderates.
Source: 10-Q Cash Flow Statement (Financial Data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 67.31 $B | 62.15 $B | +8.30% |
Cost of Revenue $B | 58.51 $B | 54.11 $B | +8.13% |
Operating Income $B | 2.46 $B | 2.20 $B | +12.16% |
Net Income $B | 2.00 $B | 1.80 $B | +11.29% |
EPS (Basic) $ | 4.51 $ | 4.05 $ | +11.36% |
EPS (Diluted) $ | 4.50 $ | 4.04 $ | +11.39% |
SG&A Expense $B | 6.33 $B | 5.85 $B | +8.35% |
Answers draw on this SEC filing and the data on this page
Costco delivered strong Q3 FY2026 results with revenue of $70.5B (+11.6% YoY) and net income of $2.19B (+15.2% YoY), driven by robust membership-driven sales growth while maintaining its characteristically lean ~4% operating margin.
Costco delivered strong Q2 FY2026 results with revenue of $69.6B (+9.2% YoY) and net income of $2.0B (+13.8% YoY), driven by robust membership-driven traffic and disciplined cost management that expanded operating margins.
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