Costco Wholesale Corp (NASDAQ:COST) Reports Mixed Q4 2025 Results, Beats on Earnings but Misses on Revenue

Costco Wholesale Corp (NASDAQ:COST) reported its fourth-quarter and full-year fiscal 2025 results, delivering a performance that highlighted both its operational resilience and the challenges of meeting heightened Wall Street expectations. The warehouse giant posted earnings that surpassed analyst forecasts, though it fell slightly short on the top line, leading to a muted initial market reaction.

Earnings and Revenue Versus Estimates

The company's financial results presented a mixed picture when measured against analyst projections. For the quarter ended August 31, 2025, Costco reported net sales of $84.43 billion, contributing to a total revenue figure of $86.16 billion when membership fees are included.

• Reported Q4 Revenue: $86.16 billion
• Analyst Estimated Q4 Revenue: $87.81 billion
• Reported Q4 EPS (Diluted): $5.87
• Analyst Estimated Q4 EPS: $5.92

While the company's earnings per share of $5.87 came in above expectations, the revenue figure missed the consensus estimate. This sales shortfall appears to be the primary driver behind the stock's relatively flat after-hours trading performance, which showed a minimal gain of approximately 0.04%. The market's tepid response suggests investors were weighing the earnings beat against the softer-than-anticipated sales growth.

Key Performance Highlights from the Quarter

Beyond the headline numbers, Costco's operational metrics demonstrated underlying strength. The company achieved a healthy increase in net sales, which rose 8.0% for the quarter and 8.1% for the full fiscal year, reaching $269.9 billion.

Comparable sales growth, a key indicator of retail health, remained positive across its major markets. On an adjusted basis, which excludes impacts from gasoline price changes and foreign exchange, the figures were particularly robust:

• U.S. comparable sales: +6.0% (16 weeks)
• Canada comparable sales: +8.3% (16 weeks)
• Other International comparable sales: +7.2% (16 weeks)
• Total Company comparable sales: +6.4% (16 weeks)
• E-commerce comparable sales: +13.5% (16 weeks)

The company's profitability also improved significantly. Net income for the quarter was $2.61 billion, or $5.87 per diluted share, compared to $2.35 billion, or $5.29 per diluted share, last year. For the full fiscal year, net income reached $8.10 billion, up from $7.37 billion in the prior year.

Looking Ahead: Analyst Estimates for Fiscal 2026

With the fiscal 2025 results now published, investor attention is turning to the future. Analyst estimates provide a benchmark for Costco's growth trajectory in the coming year. For the full fiscal year 2026, analysts are projecting sales of approximately $301.44 billion and revenue of $20.48 billion. The outlook for the first quarter of fiscal 2026 points to sales of around $68.01 billion. The company did not provide formal guidance in its press release, making these consensus estimates a critical focal point for investors assessing whether Costco can maintain its momentum in the new fiscal year.

Summary of Press Release Essentials

The earnings release underscored several fundamental strengths. Membership fee revenue saw a significant increase to $1.72 billion for the quarter, highlighting the continued value consumers place on the Costco model. The company also maintained a strong balance sheet, with cash and cash equivalents growing to $14.16 billion. Furthermore, Costco continues to expand its global footprint, ending the period with 914 warehouses worldwide.

The market's initial reaction indicates a period of digestion for these results. The earnings beat is a positive signal of efficient operations and profitability, but the revenue miss relative to high expectations has tempered enthusiasm. The focus now shifts to the company's ability to drive top-line growth in line with forecasts for fiscal 2026.

For a more detailed breakdown of past earnings and future estimates, you can view the earnings and estimates page for COST.

Disclaimer: This article is for informational purposes only and does not constitute investment advice of any kind.