Costco exceeded Wall Street’s expectations for both quarterly earnings and revenue on Thursday, delivering solid results fueled by strong membership growth and a surge in online sales. The wholesale retail giant reported double-digit gains in both membership income and e-commerce activity, underscoring its continued dominance in the value-driven retail sector.

Unlike many major retailers, Costco does not release an annual forecast, maintaining its traditional cautious approach. During the company’s earnings call, CFO Gary Millerchip emphasized that the company has taken strategic steps to manage the impact of higher import tariffs. One tactic has been expanding its Kirkland Signature private-label line to replace imported goods affected by tariffs. Imported products make up roughly one-third of Costco’s U.S. sales, giving tariff policies a notable impact on operations.

Millerchip noted that the company has been adjusting its merchandise mix by sourcing more U.S.-made items and focusing on product categories with minimal tariff exposure—such as health and beauty. He also highlighted that inflation remains in the low- to mid-single-digit range overall, with food price increases staying steady compared to the previous quarter. However, inflation has reemerged for non-food merchandise, primarily among imported goods.

After the earnings announcement, Costco’s stock saw a minor decline in after-hours trading, despite the company’s impressive performance.

According to LSEG’s survey of analysts, the company’s results for the fiscal fourth quarter were as follows:

• Earnings per share: $5.87 versus $5.80 expected
• Revenue: $86.16 billion versus $86.06 billion expected

Net income for the quarter climbed to $2.61 billion, or $5.87 per share, up from $2.35 billion, or $5.29 per share, during the same period last year. Revenue increased from $79.7 billion a year earlier.

Comparable-store sales—a key retail performance metric that excludes new store openings and closures—rose 6.4% when adjusted for changes in gas prices and foreign exchange rates. Although this marked the second straight quarter of slowing same-store sales growth, e-commerce performance was a bright spot. Online sales surged 13.5% from a year earlier on a comparable basis.

For the full year, e-commerce sales surpassed $19.6 billion, representing a 15% increase year-over-year and accounting for just over 7% of Costco’s total net sales. CEO Ron Vachris said the company continues to enhance its digital capabilities, including implementing faster checkout systems for smaller transactions and improving search functionality across its website and app. Costco has also introduced a “virtual waiting room” for high-demand products like Pokémon cards during heavy online traffic periods.

As American consumers continue to prioritize affordability, Costco and its warehouse-club rivals have expanded their footprints and attracted a new generation of members. Younger shoppers, particularly those under 40, are increasingly joining the retailer, drawn by its combination of value pricing, diverse product selection, and digital convenience. Millerchip noted that nearly half of new memberships each year now come from this younger demographic.

Costco’s total annual revenue—including membership fees—reached $275.24 billion, an 8.1% increase from the prior year. Membership fee income rose roughly 14% in the latest quarter, boosted by both an increase in total members and more customers upgrading to higher-tier memberships. The company raised its membership fees last fall for the first time since 2017—by $5 for standard and $10 for premium tiers—helping to drive nearly half of the quarter’s membership income growth.

Vachris also confirmed that Costco opened 27 new warehouses during the quarter, including three relocations, and plans to open an additional 35 in the upcoming fiscal year. Global traffic, both in stores and online, increased by 3.7%, while the average transaction size climbed 2.6% worldwide, excluding fuel and currency effects.

Sales in Costco’s fresh food category grew by high single digits, led by double-digit increases in meat. Non-food categories also performed strongly, with jewelry, toys, men’s apparel, and gift cards all posting double-digit growth compared to the previous year. Gold bar sales, which had been a highlight in the previous year when the product first launched, contributed less to overall growth this time around.

Over the past five years, Costco’s shares have soared nearly 180%, reflecting strong long-term performance. However, in 2025, the company’s stock has slightly trailed broader market gains—rising just over 2% year-to-date compared to the S&P 500’s 12% increase.

Despite this short-term lag, Costco continues to strengthen its position as a leader in value retailing, leveraging its loyal customer base, expanding membership program, and growing digital presence to maintain long-term momentum.