Costco Wholesale (NASDAQ:COST) Trading Down 3.9% After Earnings Miss

Costco Wholesale Corporation (NASDAQ:COST) shares fell 3.9% during mid-day trading on Friday following a weaker than expected earnings announcement. The company traded as low as $945.45 and last traded at $956.32. 7,012,226 shares traded hands during mid-day trading, an increase of 225% from the average session volume of 2,158,712 shares. The stock had previously closed at $995.20.

The retailer reported $4.93 EPS for the quarter, missing the consensus estimate of $4.98 by ($0.05). The company had revenue of $70.53 billion for the quarter, compared to analyst estimates of $69.68 billion. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.During the same period last year, the firm posted $4.28 earnings per share.

Costco Wholesale Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were given a dividend of $1.47 per share. The ex-dividend date of this dividend was Friday, May 1st. This is an increase from Costco Wholesale’s previous quarterly dividend of $1.30. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio is presently 30.58%.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco beat revenue expectations in Q3, with sales up 11.6% year over year to $70.53 billion and same-store sales rising 9.8%, helped by strong demand for essentials and value-focused shopping. Reuters: Costco Wholesale beats quarterly sales estimates
• Positive Sentiment: Membership and digital trends remained strong, with membership fee revenue rising and digitally enabled comparable sales accelerating, reinforcing Costco’s loyal customer base and growth model. Zacks: Costco Q3 Earnings Beat on Strong Membership and Digital Growth
• Positive Sentiment: Analyst sentiment was broadly constructive, with Bank of America raising its target to $1,200 and reaffirmed buy/outperform calls from Goldman Sachs, Bernstein, BTIG, and Morgan Stanley signaling confidence in Costco’s long-term growth. Benzinga analyst update
• Neutral Sentiment: DA Davidson kept a neutral rating but lifted its price target to $1,000, suggesting modest upside while acknowledging the stock’s premium valuation. Benzinga analyst update
• Negative Sentiment: Despite the earnings beat, shares slipped as investors focused on Costco’s lofty multiple and slight EPS miss versus estimates, indicating the quarter was not strong enough to fully justify the stock’s valuation. Motley Fool: Why Costco Stock Was Sliding Today
• Negative Sentiment: Margin pressure remains a concern, with higher transportation and operating costs weighing on profitability even as sales stay robust. Yahoo Finance: Costco Wholesale Corp Q3 2026 Earnings Call Highlights

Analysts Set New Price Targets

A number of equities analysts have commented on COST shares. Telsey Advisory Group boosted their price objective on shares of Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an “outperform” rating in a report on Thursday, April 9th. Deutsche Bank Aktiengesellschaft lifted their target price on Costco Wholesale from $1,104.00 to $1,106.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. BTIG Research reiterated a “buy” rating and issued a $1,125.00 price target on shares of Costco Wholesale in a research note on Friday. Mizuho raised their price objective on Costco Wholesale from $1,065.00 to $1,100.00 and gave the company an “outperform” rating in a research note on Thursday, April 16th. Finally, JPMorgan Chase & Co. lifted their price objective on Costco Wholesale from $1,060.00 to $1,110.00 and gave the stock an “overweight” rating in a report on Friday, April 17th. Twenty-one analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $1,056.32.

Insider Activity

In other news, EVP Claudine Adamo sold 730 shares of the company’s stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value of $732,204.60. Following the sale, the executive vice president owned 6,121 shares in the company, valued at approximately $6,139,485.42. This represents a 10.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 0.10% of the company’s stock.

Institutional Trading of Costco Wholesale

Hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. raised its position in shares of Costco Wholesale by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer’s stock valued at $37,615,889,000 after acquiring an additional 165,349 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Costco Wholesale by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer’s stock worth $8,919,573,000 after purchasing an additional 26,690 shares during the period. Morgan Stanley increased its stake in Costco Wholesale by 1.1% during the fourth quarter. Morgan Stanley now owns 9,523,423 shares of the retailer’s stock valued at $8,212,433,000 after purchasing an additional 107,775 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of Costco Wholesale by 11.5% during the first quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer’s stock worth $7,488,203,000 after purchasing an additional 773,651 shares during the period. Finally, Diamant Asset Management Inc. lifted its position in shares of Costco Wholesale by 99,278.0% in the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock worth $672,690,000 after buying an additional 6,720,130 shares during the last quarter. 68.48% of the stock is owned by institutional investors.

Costco Wholesale Stock Performance

The stock’s 50-day moving average price is $1,008.28 and its 200-day moving average price is $962.53. The company has a current ratio of 1.06, a quick ratio of 0.59 and a debt-to-equity ratio of 0.18. The company has a market capitalization of $424.27 billion, a P/E ratio of 49.73, a P/E/G ratio of 4.94 and a beta of 0.92.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company’s product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco’s business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.