Costco Wholesale Corp (NASDAQ:COST) Reports Q1 2026 Earnings Beat Amid Slight Revenue Miss

Costco Wholesale Corp (NASDAQ:COST) reported financial results for the first quarter of its 2026 fiscal year, delivering a mixed performance against Wall Street's expectations. The membership-based retail giant posted solid top-line growth and a notable profit beat, though its revenue figure came in slightly below analyst forecasts.

Earnings and Revenue Versus Estimates

The company's reported figures present a nuanced picture when held against consensus estimates. For the quarter ended November 23, 2025, Costco generated total revenue of $67.31 billion, which fell short of the $68.51 billion analysts had anticipated. This represents a year-over-year increase of 8.3%.

On the profitability front, the story was stronger. Costco reported net income of $2.00 billion, or $4.50 per diluted share on a GAAP basis. When adjusted for a tax benefit related to stock-based compensation, the non-GAAP earnings per share was $4.34. This adjusted EPS surpassed the consensus estimate of $4.36.

Key reported figures versus estimates:

• Reported Revenue: $67.31 billion
• Estimated Revenue: $68.51 billion
• Reported Adjusted EPS: $4.34
• Estimated EPS: $4.36

Market Reaction and Price Action

The market's immediate response to the earnings release was muted to slightly negative. In after-hours trading following the announcement, COST shares declined approximately 0.45%. This reaction suggests investors may be weighing the revenue miss against the earnings beat, or potentially looking ahead to the company's outlook amid broader economic concerns.

This near-term movement adds to a recent period of consolidation for the stock:

• Performance over the last week: -1.27%
• Performance over the last two weeks: -2.62%
• Performance over the last month: -3.23%

Key Highlights from the Quarterly Report

Beyond the headline numbers, Costco's quarterly press release underscored the resilience of its core business model. The company continues to see robust growth in membership fees and strong comparable sales across its global footprint.

• Net Sales: Increased 8.2% to $65.98 billion, up from $60.99 billion in the prior-year quarter.
• Comparable Sales Growth: Total company comparable sales rose 6.4%. When adjusted for gasoline price and foreign exchange impacts, growth remained at 6.4%.
  • U.S. comparable sales increased 5.9%.
  • Canada saw 6.5% growth (9.0% adjusted).
  • Other International markets grew 8.8% (6.8% adjusted).
• E-Commerce Strength: Digitally-enabled comparable sales surged 20.5%, highlighting the success of the company's omnichannel strategy.
• Membership Income: Membership fees grew to $1.33 billion, up from $1.17 billion a year ago, reflecting high renewal rates and member loyalty.
• Warehouse Count: The company ended the quarter operating 923 warehouses globally, a continued steady expansion of its physical footprint.

Looking Ahead: Analyst Expectations

While Costco did not provide formal financial guidance in its release, analyst estimates for the coming periods offer a benchmark for future performance. For the full 2026 fiscal year, analysts are projecting sales of approximately $302.73 billion and revenue of $204.78 billion. For the upcoming second quarter (Q2 2026), the consensus estimates are for sales of $70.33 billion and revenue of $45.92 billion. Investors will be watching the company's ability to meet these forecasts in a potentially softening consumer environment.

Conclusion

Costco's first-quarter results demonstrate its enduring appeal to value-focused shoppers, translating into steady sales growth and expanding profitability. The slight revenue miss may give some investors pause, but the earnings beat and strong underlying metrics—particularly in membership fees and e-commerce—reinforce the strength of its subscription-based model. The subdued market reaction reflects a balancing act between these positive fundamentals and high expectations already baked into the stock's valuation.

For a detailed look at Costco's historical earnings, future estimates, and analyst projections, visit the earnings and estimates page for COST.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any security. Investing carries risks, including the potential loss of principal.