Costco posts $67 billion Q1 revenue with 6.4% comparable sales growth, membership fees drive earnings beat and analysts predict higher stock

Costco posted $67.31 billion in quarterly revenue and 6.4% comparable sales growth, easily beating Wall Street expectations and proving the warehouse giant’s business model remains resilient even as consumers tighten spending. The earnings beat comes as membership fees surged, demonstrating how crucial that recurring revenue stream has become to the retailer’s profitability.

Costco Crushes Revenue Expectations With 8.2% Sales Growth

Costco’s fiscal first quarter ended November 23, 2025, delivered what investors desperately needed to see. The $67.31 billion in net sales wasn’t just a beat—it was a dominant performance that silenced skeptics who worried the warehouse operator would stumble amid economic uncertainty.

The 8.2% increase from $62.15 billion a year earlier showed that shoppers continue prioritizing value, even with inflation pressures and shifting consumer patterns. Membership-driven shopping proved especially powerful, with the company’s loyal customer base driving both volume and traffic.

Analysts polled by major financial outlets had estimated just $67.14 billion, meaning Costco cleared expectations by $170 million. The quarter included strong demand across categories and geographies, with U.S. comparable sales up 5.9% and Canada comparable sales climbing 6.5%.

Membership Fees Deliver Earnings Beat as Subscription Model Shines

Here’s what made the earnings truly impressive: membership fee income grew significantly, driving profit margins higher while revenue climbed. This subscription-like revenue stream represents some of the most predictable, sticky income a retailer can generate.

The $4.50 earnings per share beat analyst consensus of $4.28 by $0.22 per share, fueling enthusiasm on Wall Street. Adjusted earnings came in at $4.34 per share, also topping expectations. This earnings beat wasn’t driven by slashing costs—it came from higher membership revenues and improving operational leverage.

Costco raised membership fees in both the U.S. and Canada during fiscal 2025, moving Gold Star memberships from $60 to $65 annually and Executive memberships from $120 to $130. Results now show that increase hasn’t hurt renewal rates or growth, proving the brand’s pricing power remains intact.

Digital Sales Accelerate 20.5% as E-Commerce Growth Outpaces Stores

Financial Metric	Q1 FY2026 Result	Prior Year
Net Sales	$67.31 billion	$62.15 billion
Comparable Sales Growth	6.4%	Consensus: 5.8%
Digital Sales Growth	20.5%	Prior quarters lower
Earnings Per Share	$4.50	Estimate: $4.28
U.S. Comparable Sales	5.9%	Strong momentum

Digital commerce emerged as a crucial growth engine, with online sales jumping 20.5% in the quarter. This acceleration showcased how Costco’s omnichannel strategy is paying off as members increasingly shop both in-warehouse and online for convenience.

The 20.5% digital surge far outpaced store-only sales growth, suggesting holiday shoppers appreciated the ability to buy Costco products from home while maintaining membership benefits. E-commerce represents one of the company’s highest-growth channels heading into 2026.

Market Reacts to Strong Results While COST Stock Trades Around $884

Costco’s stock closed at $884.48 on the day of earnings release, reflecting investor confidence in the company’s execution. The stock had traded in a wide range during the prior months, hitting 52-week lows near $871-$872 before the earnings report.

The company’s market capitalization reached approximately $392.67 billion, cementing its position as a mega-cap essential retailer. Wall Street observers noted that strong membership growth and pricing power gave the company cushion against any economic slowdown.

Why Did Costco Stock and Earnings Beat Wall Street Expectations?

What allowed Costco to beat expectations so decisively? The answer lies in three core strengths that separate this retailer from competitors. First, membership economics remain unmatched—the subscription model creates a dedicated customer base willing to visit frequently and buy in bulk.

Second, operational excellence and inventory management allowed Costco to deliver strong comp sales without hefty discounting. Third, membership fee increases from fiscal 2025 contributed directly to earnings growth, with renewal rates holding firm despite the price bump from $60 to $65 for U.S. members.

The company also benefited from consumer demand for groceries and essentials that held steady into the holiday season. Private label brand Kirkland Signature products continued driving high-margin sales, with shoppers favoring the quality and value combination the warehouse offers.