Costco Wholesale announced its fiscal third-quarter results for 2026, reporting an increase in net sales compared to the same period last year and surpassing Wall Street's revenue projections. The retail giant's net sales reached $69.15 billion, an 11.6% increase from the prior year. Adjusted comparable sales also saw a significant rise of 6.6% for the quarter, with digital sales experiencing a notable surge of nearly 21%.
For the three-month period ending May 10, Costco posted a net income of $2.19 billion, or $4.93 per share, an improvement from the $1.9 billion, or $4.28 per share, recorded in the corresponding period of the previous year. Total revenue climbed to $70.53 billion, up from $63.2 billion in the year-ago period. The company also highlighted robust membership growth, with paid memberships increasing by 4.1% during the quarter. Website and app traffic saw a substantial jump of 37%. Top-performing sales categories for Costco included pharmacy, home furnishings, and gold and jewelry.
Costco's financial performance unfolds against the backdrop of ongoing discussions regarding tariffs. Costco has been at the forefront of a tariff dispute with the Trump administration following a Supreme Court decision that invalidated some of President Donald Trump's levies on foreign imports. Costco had previously stated its intention to reduce prices should it receive tariff refunds resulting from this decision.
Analysts had previously expected the company to see higher demand at the onset of the war in the Middle East because of its cheaper gas prices and value offerings that appeal to a more cost-conscious consumer, according to LSEG analyst survey data.
Shares of Costco showed minimal change in extended trading following the earnings announcement. The company's ability to grow sales and beat revenue estimates underscores its resilience and broad appeal to consumers.
