Costco Wholesale (NASDAQ:COST) Announces Quarterly Earnings Results

Costco Wholesale (NASDAQ:COST) posted its quarterly earnings data on Thursday. The retailer reported $6.75 earnings per share for the quarter, topping the consensus estimate of $6.54 by $0.21, FiscalAI reports. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. The firm had revenue of $95.72 billion for the quarter, compared to analysts’ expectations of $94.97 billion.

Costco Wholesale Trading Down 0.9%

Shares of COST stock traded down $8.22 on Thursday, reaching $896.48. 2,774,287 shares of the stock were exchanged, compared to its average volume of 2,185,351. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. Costco Wholesale has a one year low of $844.06 and a one year high of $1,096.50. The stock has a market cap of $397.57 billion, a PE ratio of 45.09, a P/E/G ratio of 3.78 and a beta of 0.86. The stock has a 50 day moving average price of $935.31 and a 200 day moving average price of $968.90.

Costco Wholesale Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were paid a $1.47 dividend. This represents a $5.88 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Friday, July 24th. Costco Wholesale’s dividend payout ratio (DPR) is 29.58%.

Key Stories Impacting Costco Wholesale

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Costco is expected to report roughly $94 billion in revenue and approximately $6.53–$6.59 in earnings per share. Strong traffic, digital sales and membership growth could reinforce the company’s defensive consumer position. Costco Q4 Preview: Members Are Engaged Despite Ongoing Macro Uncertainty
• Positive Sentiment: Analyst support remains a potential catalyst: BTIG reaffirmed a Buy rating and a $1,125 price target, citing durable growth drivers. Other reported targets are also well above the current level. Analyst Reiterates Buy on Costco
• Neutral Sentiment: Investors are focused on renewal rates, membership additions, comparable sales and the quality of earnings rather than headline revenue alone. Renewal rates above 90% and Costco’s value proposition could support long-term stability, but the results must justify a high earnings multiple. Costco’s Sales Are In – Now Comes the Real Test
• Negative Sentiment: The benefit from Costco’s 2024 membership-fee increase may be fading. Because membership fees contribute about half of operating income, slowing fee-related growth could pressure future earnings momentum. Costco’s Membership Fee Boost Is About to Run Out
• Negative Sentiment: Margin risks—including tariffs, merchandise costs and possible tariff refunds—are key concerns. Investors also want clarity on whether higher gas prices help fuel sales or hurt household budgets. With shares valued at about 45 times earnings, even a solid quarter could disappoint if margins or guidance are weak. Costco Q4 Preview: Healthy Earnings, Margin Risks and Anticipations

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the company. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $1,091.00 price target on shares of Costco Wholesale in a research report on Friday, September 4th. UBS Group reissued a “buy” rating on shares of Costco Wholesale in a report on Thursday, September 17th. The Goldman Sachs Group boosted their price target on Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a “buy” rating in a research note on Friday, May 29th. Roth Capital boosted their price objective on Costco Wholesale from $769.00 to $781.00 and gave the company a “sell” rating in a research report on Friday, May 29th. Finally, Oppenheimer reiterated an “outperform” rating and set a $1,160.00 target price on shares of Costco Wholesale in a research report on Wednesday, September 16th. Twenty-two analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Costco Wholesale has a consensus rating of “Moderate Buy” and a consensus target price of $1,052.65.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.