ISSAQUAH, Washington, March 6, 2026, 02:03 PST
- Costco’s fiscal second-quarter revenue climbed to $69.60 billion, with diluted EPS at $4.58. That’s up from $63.72 billion and $4.02 in the same quarter last year.
- Adjusted comparable sales climbed 6.7%, topping the LSEG consensus of 5.88%. Net sales for February jumped 9.5%.
- According to management, if there are any tariff refunds, those savings get passed along to members by way of lower prices.
Costco Wholesale topped analysts’ forecasts for both sales and profit in its holiday quarter, reporting on Thursday. The retailer logged $69.60 billion in second-quarter revenue and $2.04 billion in net income for the stretch ending Feb. 15. Costco also said it plans to pass along any tariff refunds by cutting prices for members.
The timing is crucial: a U.S. trade judge is set to meet with attorneys this Friday to hash out the mechanics of potentially refunding up to $175 billion in tariffs placed via the International Emergency Economic Powers Act—emergency legislation from 1977—after the Supreme Court tossed those duties on Feb. 20. Costco, one of the importers waiting for repayment, told investors management still can’t pin down if, when, or how much they’ll actually get back.
Costco posted a 6.7% increase in adjusted comparable sales — a shade better than the 5.88% pace analysts expected, according to LSEG. Net sales reached $68.24 billion for the period, up 9.1%. Membership fee revenue jumped 13.6% to $1.355 billion.
February data indicated the momentum didn’t fade after the holidays. For the four weeks through March 1, net sales climbed 9.5%. Digitally enabled sales—those driven by online or app activity—surged 21.8%, according to company stats.
Chief Executive Ron Vachris called the future impact of tariffs “extremely fluid” in remarks to analysts. If there are any recoveries down the road, Costco plans to pass those along as “lower prices and better values,” he added. The Motley Fool
Costco has rolled back prices on items like textiles, bedding and cookware, Vachris said, thanks to lower duties. He mentioned shifting production, tightening up purchasing, and relying more on Kirkland Signature as ways the company is handling tariff impacts.
It’s a packed field for value right now. Walmart keeps pulling in shoppers from every income bracket, while BJ’s Wholesale Club on Thursday posted 2.6% growth in comparable club sales, excluding gas, and predicted 2% to 3% gains for fiscal 2026. Costco, though, recently topped that pace by a wide margin.
Not everything moved higher. Renewal rates in the U.S. and Canada edged down by 10 basis points to 92.1% compared with the previous quarter. Worldwide, though, the rate was unchanged at 89.7%. CFO Gary Millerchip pinned the dip on a greater share of new online members, who tend to stick around less than those who sign up inside warehouses.
Tariff relief isn’t guaranteed to land quickly, and new disruptions might erase any benefit before it even arrives. Costco’s Vachris admitted the company is still in the dark about whether it will get any refunds at all. Government attorneys, for their part, have flagged that sorting through tens of millions of tariff payments will likely mean a painstaking, hands-on process. Millerchip flagged another concern: instability in the Middle East could ripple through fuel prices and upend shipping schedules.
Costco is still getting “safe haven” status from the market, thanks to geopolitical volatility, despite the bar being set high ahead of earnings, said David Wagner, head of equity and portfolio manager at Aptus Capital Advisors. The stock barely budged in after-hours trading on Thursday. Reuters
Costco closed out the quarter counting 82.1 million paid members, with its global warehouse tally holding at 924. The retailer is sticking with its outlook for 28 net new warehouse openings in fiscal 2026, part of a larger push toward topping 30 new locations annually.
