Costco Wholesale 2025 Q4 Earnings Surpasses Expectations as Net Income Rises 10.9%

Costco Wholesale reported Q4 2025 earnings that exceeded expectations, with both revenue and net income surpassing prior-year results. The company did not provide explicit forward-looking guidance but reiterated its commitment to long-term strategic initiatives. Management highlighted strong performance across all regions and emphasized confidence in its ability to adapt to macroeconomic headwinds.

Revenue
Costco’s total revenue rose 8.1% year-over-year to $86.16 billion in Q4 2025, driven by robust net sales of $84.43 billion. Membership fees also contributed $1.72 billion, reflecting continued loyalty from the company’s global customer base. The performance was broad-based, with each segment—net sales and membership fees—contributing meaningfully to the overall top-line growth.

Earnings/Net Income
Costco’s earnings per share (EPS) increased 10.9% to $5.88 in Q4 2025, compared to $5.30 in the prior-year period. Net income also rose 10.9% to $2.61 billion, marking a significant milestone as the highest quarterly net income in over two decades. The strong earnings performance underscores the company’s effective cost management and pricing discipline.

Price Action
Shares of Costco have seen mixed performance in recent sessions. During the latest trading day, the stock declined by 0.96%. Over the past full trading week, it fell another 0.95%, though it has posted a modest 0.18% gain on a month-to-date basis.

Post-Earnings Price Action Review
Despite the solid earnings report, the stock has faced short-term selling pressure. This may reflect broader market volatility or investor caution in light of macroeconomic risks. However, the long-term fundamentals remain strong, with Costco reporting consistent growth across its global operations and e-commerce platforms.

CEO Commentary
Costco’s CEO underscored the company’s strong performance in fiscal 2025, highlighting an 8.1% year-over-year increase in net sales to $269.9 billion. E-commerce growth remained robust, with 16.1% year-over-year sales. The CEO acknowledged ongoing challenges from inflation and economic conditions but expressed confidence in the company’s strategic positioning and ability to adapt.

Guidance
Costco did not provide specific forward-looking guidance in its 8-K filing. However, the company noted general risks, including economic conditions, geopolitical factors, and supply chain uncertainties. The press release emphasized its ability to continue investing in e-commerce and international expansion while managing external pressures such as inflation and rising operational costs.

Additional News
Costco operates 914 warehouses across 14 countries, including 629 in the U.S. and Puerto Rico, 110 in Canada, and 42 in Mexico. It also maintains e-commerce platforms in eight countries, further expanding its digital footprint. The company recently announced a conference call on September 25, 2025, to discuss Q4 results. Notably, Costco repurchased $903 million in common stock during Q4 2025 and paid out $2.183 billion in cash dividends. While there were no M&A announcements or major C-level changes within the last three weeks, Costco’s continued investment in digital infrastructure and operational efficiency signals its long-term commitment to growth.