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Costco Wholesale Corporation (NASDAQ: COST) Earnings Preview: Strong Sales and Membership Growth

  • Costco's Q1 fiscal 2026 revenue is estimated at $67.28 billion, marking an 8.3% increase year-over-year, with an EPS forecast of $4.25.
  • The company's net sales have risen by 8.2% to $65.98 billion, driven by robust comparable sales and a significant 20.5% growth in digital sales.
  • Costco's financial stability is highlighted by a price-to-earnings (P/E) ratio of approximately 48.71 and a debt-to-equity ratio of 0.28, indicating strong investor confidence and financial health.

Costco Wholesale Corporation (NASDAQ: COST) is a leading global retailer known for its membership-only warehouse clubs. The company is set to release its quarterly earnings on December 11, 2025, with Wall Street analysts estimating an earnings per share (EPS) of $4.25 and projected revenue of approximately $67.1 billion. Costco's business model focuses on offering low prices on a limited selection of nationally branded and private-label products, which has helped it maintain a loyal customer base.

As Costco approaches its first-quarter fiscal 2026 earnings announcement, the company is showing strong sales figures and increasing memberships. The Q1 revenue is estimated at $67.28 billion, an 8.3% increase from the previous year, while the EPS forecast is $4.25, reflecting an 11.3% rise. Net sales for the quarter have risen by 8.2% to $65.98 billion, driven by robust comparable sales and a significant 20.5% growth in digital sales.

Costco's strategic initiatives, such as auto-renewal, digital outreach, and new perks like Instacart credits, have enhanced customer loyalty. These efforts, along with a focus on membership growth, have allowed Costco to maintain steady sales and earnings growth. The company's net sales of $65.98 billion mark an 8.2% increase compared to the previous year's $60.99 billion, with comparable sales rising by 6.4% across all major regions.

The company's financial metrics reflect its strong market position. Costco's price-to-earnings (P/E) ratio is approximately 48.71, indicating investor confidence in its earnings potential. The price-to-sales ratio stands at 1.43, and the enterprise value to sales ratio is 1.41, reflecting the company's valuation in relation to its sales. With a debt-to-equity ratio of 0.28, Costco maintains a relatively low level of debt compared to its equity, suggesting financial stability.

Investors are keenly watching Costco's upcoming earnings announcement, especially considering the company's history of rewarding investors with reliable dividends. Despite a rare decline in 2025, with shares down more than 2%, there is speculation about the possibility of another special dividend. Costco's consistent performance and strategic investments position it favorably as it approaches the peak holiday shopping weeks.