Q4 FY2026 results
| Metric | Result | Change |
|---|---|---|
| Net Sales | $93.87 billion | +11.2% |
| Net Income | $2.998 billion | N/A |
| Membership Fee Income | $1.849 billion | +7.3% |
| Comparable Sales (Adjusted) | 6.7% | N/A |
| Capital Expenditure (FY26) | $6.4 billion | N/A |
Guidance and outlook
- The company plans to open 33 warehouses in fiscal year 2027.
- Capital expenditure is planned at approximately $7.5 billion for fiscal year 2027.
How management sounded
Positive (+6 on our -10 to +10 scale). Management highlighted record executive membership penetration, strong digital growth, and a clear strategy to reinvest tariff refunds into member value, maintaining a positive outlook despite some cost pressures. Management sounded more upbeat than on 8% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Tariff Refunds and Pricing
Asked: How are you evaluating the return on the $100 million invested in price?
Answer: Management views the investment as giving value back to members, noting that nonfood sales were the highest performing category, which indicates members are responding to the value.
Membership Growth
Asked: How should we view the narrowing spread between membership growth and unit growth?
Answer: Management emphasized the quality of the membership base, noting record executive penetration and younger member growth, which they believe bodes well for future spend.
Inflation
Asked: What is the outlook for grocery inflation over the next 3 to 6 months?
Answer: Management noted it is difficult to predict due to Middle East volatility and tariff uncertainty, but they aim to find efficiencies to keep prices low.
Digital and AI
Asked: Is AI and agentic commerce an opportunity for Costco?
Answer: Management sees AI as a tool members use to search for products, noting triple-digit growth in sales originating from AI search, and they are working to ensure their value shows up transparently.
What to watch before the next call
- The impact of the Middle East conflict on commodity prices and inflation.
- The performance of the 33 planned warehouse openings in fiscal year 2027.
- The continued integration of third-party delivery partnerships like Uber Eats and DoorDash.
