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.
Revenue
$70.53B
+11.6% YoY
Net Income
$2.19B
+15.2% YoY
EPS (Diluted)
$4.93
+15.2% YoY
Key risk: Razor-Thin Operating Margin Leaves Little Buffer
Costco's operating margin remained essentially flat at ~4.0%, a structurally low level by design given its membership-fee-driven model. Any unexpected cost increases—such as tariffs on imported goods, wage inflation, or supply chain disruptions—could disproportionately compress profitability given the narrow margin base.