Costco Wholesale Corporation’s third quarter results to May 10, 2026 showed an 11.6% year-on-year revenue growth to $70.5 billion. The total revenue of Costco comprises net sales and membership fees. Net sales accounted for 98.1% of total sales or $69.2 billion in the third quarter of 2026 (Quarter 3, 2025:98% or $62 billion). Membership fees stood at $1.4 billion. Net sales grew by 11.6% while membership fees grew by 10.7%.
Operating income in Quarter 3 of 2026 was $2.8 billion compared to $2.5 billion in the corresponding period of the previous year. Profit Before Tax (PBT) grew from $2.6 billion in Quarter 2, 2025 to $2.9 billion in Quarter 3, 2026. The company announced a Profit After Tax (PAT) of $2.2 billion at the end of the third quarter of 2026, representing a 15.2% year-on-year growth.
Gross profit increased by 9.6% to $7.6 billion. However, Gross profit margin declined marginally from 11.2% in 2025 to 11% in 2026.
| Quarter 3, 2026 | Quarter 3, 2025 | % Change | |
| Revenue | $70,527,000,000 | $63,205,000,000 | 11.6% |
| Income Before Taxes | $2,938,000,000 | $2,580,000,000 | 13.9% |
| Net Income | $2,192,000,000 | $1,903,000,000 | 15.2% |
- Profit margin, a mixed bag
PBT margin increased slightly from 4.1% to 4.2%, gaining 0.1% between Quarter 3, 2025 and Quarter 3, 2026. Likewise, PAT margin rose from 3% to 3.1%. However, gross profit margin decreased to 11% from 11.2%. Operating profit margin was unchanged within the period.
- Low leverage
COSTCO is a low-geared company with adequate operating profit and operating cash flow to meet its debt obligations. The operating profit covered interest expense 88 times in the third quarter of 2026 (Quarter 3, 2025: 72.3 times). In addition, total debt was 24.3% of total equity and 9.4% of total assets as at May 10, 2026.
ABOUT COSTCO WHOLESALE CORPORATION
COSTCO is an American multinational that operates warehouses and e-commerce sites for the purpose of offering products at affordable prices to its members. Each member, a business or an individual, pays an annual membership fee to shop at the company.
