Costco reported solid Q1 FY2026 results with strong net sales growth and improved net income, driven by membership fees and controlled operating expenses.
Net sales increased 8.2% to $65.98 billion, up from $60.99 billion last year.
positiveNet income grew to $2,001 million, or $4.50 per diluted share, compared to $1,798 million, or $4.04 per diluted share, in the prior year.
positiveMembership fees increased to $1,329 million from $1,166 million in the prior year.
positiveDigitally-enabled comparable sales grew 20.5%.
positiveU.S. comparable sales growth of 5.9% decelerated from the adjusted 5.9% which implies no acceleration.
attentionThe tax benefit related to stock-based compensation decreased to $72 million ($0.16 per share) from $100 million ($0.22 per share) in the prior year, impacting net income growth.
attentionMerchandise inventories increased to $21,141 million from $18,116 million at the end of the prior fiscal year, a significant increase.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
The company reported operating results for the first quarter of fiscal 2026.
Comparable sales for the first quarter fiscal 2026 were provided for U.S., Canada, Other International, and Digitally-Enabled segments.
The company operates 923 warehouses globally, including e-commerce sites in multiple countries.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.