Sales and profit rise—with an important one-off adjustment
On September 24, 2026, Costco reported results for the 16-week fourth quarter and 52-week fiscal year ended August 30. Annual net sales rose 10.1% to $297.247 billion, total revenue reached $303.154 billion and net income increased to $9.226 billion from $8.099 billion a year earlier. [1 · Costco · fourth-quarter and fiscal 2026 results, September 24, 2026]
Fourth-quarter net sales increased 11.2% to $93.873 billion, while net income rose to $2.998 billion from $2.610 billion. Diluted earnings per share were $6.75, versus $5.87. The company separately said the result benefited by $0.15 per share from a one-off IEEPA tariff refund after partial reinvestment in additional member value; excluding that benefit, Costco calculated quarterly net income growth of 12.3%. [1 · Costco · fourth-quarter and fiscal 2026 results, September 24, 2026] [2 · Costco · fiscal 2026 fourth-quarter earnings supplement]
Comparable sales—sales from comparable locations and channels over comparable periods—rose 9.4% in the quarter. The figure excluding changes in gasoline prices and foreign exchange was 6.7%. This is supplemental information, not a substitute for net sales reported under US generally accepted accounting principles. [1 · Costco · fourth-quarter and fiscal 2026 results, September 24, 2026]
Membership, digital activity and network expansion
Membership fee revenue increased to $5.907 billion for the fiscal year from $5.323 billion. At period-end, Costco had 84.1 million paid memberships, up 3.8% year over year, and 150.4 million total cardholders. The worldwide membership renewal rate was 89.8%, and the US and Canada renewal rate was 92.3%. [1 · Costco · fourth-quarter and fiscal 2026 results, September 24, 2026] [2 · Costco · fiscal 2026 fourth-quarter earnings supplement]
Digitally enabled comparable sales rose 19.5% in the fourth quarter, or 19.8% excluding foreign exchange, while website and app traffic grew 30%. Costco defines digitally enabled sales as transactions initiated on a digital device even when fulfilled through a warehouse or distribution centre, so the measure is broader than conventional online delivery. [1 · Costco · fourth-quarter and fiscal 2026 results, September 24, 2026] [2 · Costco · fiscal 2026 fourth-quarter earnings supplement]
The network ended fiscal 2026 with 939 membership warehouses and e-commerce sites in ten markets. Investor materials estimate 967 warehouses by the end of fiscal 2027. That is a company plan, not an achieved result; execution will depend on openings, demand and Costco’s ability to preserve its low-markup economics. [1 · Costco · fourth-quarter and fiscal 2026 results, September 24, 2026] [2 · Costco · fiscal 2026 fourth-quarter earnings supplement] [3 · Costco · official corporate profile]
Sources
- Costco · fourth-quarter and fiscal 2026 results, September 24, 2026 — Primary source with reported figures, comparable-sales definitions and the effect of tariff refunds.
- Costco · fiscal 2026 fourth-quarter earnings supplement — SEC-filed material covering membership, digital sales, margins and the expansion plan.
- Costco · official corporate profile — Official description of the membership-warehouse and e-commerce model.
Expert commentary
The report shows two distinct growth engines: the physical network provides scale, while the digital channel increases shopping frequency and convenience. Digitally enabled comparable sales are rising much faster than the overall base, but Costco’s definition includes orders initiated online and fulfilled through warehouses. The measure therefore signals omnichannel member behaviour more than a transformation into a conventional online retailer. [1 · Costco · fourth-quarter and fiscal 2026 results, September 24, 2026] [2 · Costco · fiscal 2026 fourth-quarter earnings supplement] [3 · Costco · official corporate profile]
Annual membership is the model’s central mechanism. Fees create predictable revenue, and high renewal reduces the need to reacquire the entire audience. In return, members expect durable value through prices, assortment and service. Membership revenue growth alongside an 89.8% global renewal rate is a strong signal, but it does not separate growth in the member base from the effect of an earlier fee increase. [1 · Costco · fourth-quarter and fiscal 2026 results, September 24, 2026] [2 · Costco · fiscal 2026 fourth-quarter earnings supplement] [3 · Costco · official corporate profile]
The competitive threat is not website growth alone, but the combination of digital discovery, a dense warehouse network and purchasing scale. That can lower fulfilment costs and turn physical locations into pickup and delivery infrastructure. Customers gain time and availability, although Costco’s limited assortment means it may complement rather than replace other stores, capturing a larger share of households’ planned and repeat purchases. [1 · Costco · fourth-quarter and fiscal 2026 results, September 24, 2026] [2 · Costco · fiscal 2026 fourth-quarter earnings supplement] [3 · Costco · official corporate profile]
Quarterly profit should not be projected mechanically. The tariff refund added $0.15 per share, and part of the benefit was reinvested in member value. This illustrates how trade policy can change costs, prices and profit at the same time. Cleaner comparisons in coming quarters should exclude that effect and focus on underlying gross margin without gasoline and one-off items. [1 · Costco · fourth-quarter and fiscal 2026 results, September 24, 2026] [2 · Costco · fiscal 2026 fourth-quarter earnings supplement]
The plan to reach 967 warehouses offers additional turnover, but also carries cannibalisation and capital-spending risks. The positive scenario is that new warehouses add members quickly and digital activity raises purchase frequency without expensive last-mile delivery. The alternative is slower comparable sales while construction and labour costs continue to rise. [1 · Costco · fourth-quarter and fiscal 2026 results, September 24, 2026] [2 · Costco · fiscal 2026 fourth-quarter earnings supplement]
Over the next 6–12 months, the key observable measures are renewal, paid membership growth, adjusted comparable sales, traffic and ticket, gross margin excluding gasoline, and warehouse openings. If digital growth remains double-digit while renewal and margin stay stable, the strategy is strengthening member relationships. If traffic grows but margin and renewal weaken, the digital acceleration will be less valuable than the headline suggests. [1 · Costco · fourth-quarter and fiscal 2026 results, September 24, 2026] [2 · Costco · fiscal 2026 fourth-quarter earnings supplement]