BJs Wholesale Club 2026 Q3 Earnings Sets 9-Year Net Income High Despite 2.4% Decline

BJ's Wholesale Club (BJ) reported fiscal 2026 Q3 earnings on Nov 21, 2025, with adjusted EPS of $1.16, exceeding analyst expectations. The company raised its full-year profit guidance despite a 2.4% decline in net income year-over-year, driven by strong membership fee growth and digital sales expansion.

Revenue

Net sales accounted for the majority of revenue at $5.22 billion, while membership fee income contributed $126.30 million, rounding out the total revenue of $5.35 billion. This 4.9% year-over-year revenue growth reflected robust performance in core segments, with digitally enabled sales surging 30% and membership fees rising 9.8%.

Earnings/Net Income

BJ’s EPS declined 1.7% to $1.16, and net income fell to $152.05 million from $155.75 million. However, the company set a 9-year high for Q3 net income, underscoring resilience amid macroeconomic challenges.

Post-Earnings Price Action Review

The strategy of buying BJ shares on its earnings announcement and holding for 30 days yielded a 5.5% return, outperforming the S&P 500’s 4.8% gain but underperforming a simple buy-and-hold approach, which would have returned 8%. While the holding period mitigated short-term volatility post-earnings, it failed to fully capitalize on broader market gains, highlighting the stock’s mixed performance relative to its fundamentals.

CEO Commentary

CEO Robert Eddy emphasized strong results, including 1.8% merchandise comp sales growth and $1.16 adjusted EPS, while noting market share and traffic gains. Strategic priorities include investments in merchandising, digital convenience, and expansion, with optimism about long-term value despite short-term macroeconomic caution.

Guidance

The company narrowed its full-year merchandise comp sales guidance to 2-3% and raised adjusted EPS to $4.30–$4.40. CFO Laura Felice attributed this to disciplined inventory management and confidence in membership growth, despite challenges in general merchandise and services.

Additional News

Recent developments include a 30% surge in digitally enabled sales, driven by a 30% lower pricing strategy on private-label products, and plans to open seven new clubs in Q4 2025. The company also announced $87.3 million in share repurchases during Q3, reflecting its capital allocation focus. Additionally, management highlighted progress in Fresh 2.0 initiatives, expanding improvements to meat, seafood, and bakery categories to boost traffic and sales.