BJs Wholesale Club 2026 Q3 Earnings Beats Estimates Amid Record Net Income

BJ's Wholesale Club (BJ) reported fiscal 2026 Q3 earnings that exceeded expectations, with revenue rising 4.9% to $5.35 billion and full-year guidance raised. The company set a nine-year net income record despite a modest EPS decline, driven by strong membership growth and digital sales acceleration.

Revenue

BJ's total revenue climbed to $5.35 billion in Q3 2026, a 4.9% increase from $5.10 billion in the prior year. Net sales accounted for $5.22 billion, reflecting steady demand, while membership fee income surged 9.8% to $126.30 million, fueled by higher-tier membership penetration and annual fee hikes. The company’s strategic focus on value-driven offerings and digital convenience further bolstered revenue resilience.

Earnings/Net Income

Earnings per share (EPS) dipped 1.7% to $1.16 in Q3 2026 from $1.18 in Q3 2025, while net income fell 2.4% to $152.05 million. Despite the decline, the company achieved a record high for Q3 net income in nine years, underscoring its ability to capitalize on membership growth and operational efficiency. The EPS performance, though slightly negative, reflects disciplined cost management amid macroeconomic challenges.

Post Earnings Price Action Review

The strategy of buying BJ shares on the earnings announcement date and holding for 30 days yielded a 5.5% return, outperforming the S&P 500’s 4.8% gain but lagging behind a simple buy-and-hold approach, which would have returned 8%. While the holding period mitigated short-term volatility, the strategy underperformed broader market gains, highlighting missed opportunities from macroeconomic tailwinds. This suggests a buy-and-hold approach may have been more effective over the past three years.

CEO Commentary

CEO Robert Eddy highlighted 1.8% merchandise comp sales growth and $1.16 adjusted EPS, emphasizing a 5.5% two-year stack acceleration. Strategic priorities include expanding membership, enhancing private-label offerings (30% cheaper than national brands), and driving digital sales growth (30% YoY). With 14 new clubs planned for 2026 and 25–30 over two years, Eddy expressed cautious optimism about long-term member loyalty and operational efficiency.

Guidance

CFO Laura Felice narrowed full-year merchandise comp sales guidance to 2–3% and raised adjusted EPS to $4.30–$4.40, reflecting Q3’s performance and inventory discipline. For Q4, management anticipates holiday promotions and digital convenience to offset general merchandise growth constraints, maintaining a cautious stance amid economic uncertainty.

Additional News

BJ’s launched new private-label products, including tortilla chips, protein shakes, and coffee pots, priced 30% below national brands to enhance loyalty and margins. The company also announced 14 new club openings in 2026 and repurchased 905,000 shares for $87.3 million during Q3, underscoring its commitment to shareholder returns. Additionally, BJ’s membership fee income surged 9.8% year-over-year, driven by strong acquisition and retention rates, signaling sustained demand for its value proposition.