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Costco warehouse storefront with Q4 FY2026 earnings results showing $6.75 EPS beat
Photo: Traders Agency

Costco Stock Jumps 2.9% on Q4 Earnings Beat

Costco Investor Relations2 min read6 sources

Why is Costco stock up today?

Costco (COST) stock rose 2.9% on Friday after the retailer reported Q4 FY2026 earnings of $6.75 per share, beating the $6.54 consensus on 9.4% comparable-sales growth.

Key numbers

Q4 Diluted EPS$6.75+$0.21 vs $6.54 consensus
Q4 Total Revenue$95.72B+11.2% YoY; beat est. by $0.75B
Comparable-Sales Growth+9.4%+6.7% adj. ex-gas and FX
IEEPA Tariff Refund Benefit$0.15/share$184M gross; one-time, non-recurring
Paid Members84.1M+3.8% YoY; renewal rate 92.3% US/Canada
FY2027 Warehouse Openings33 planned28 net new; CapEx $7.5B

What happened

Costco (COST) stock rose 2.9% on Friday after the retailer reported Q4 FY2026 earnings of $6.75 per share, beating the $6.54 consensus on 9.4% comparable-sales growth. Total revenue for the 16-week quarter came in at $95.72 billion, up 11.2% from a year ago and above Wall Street's $94.97 billion estimate. Analysts noted that $0.15 of the $0.21 per-share beat came from one-time IEEPA tariff refunds — government rebates on import duties — making the underlying beat roughly $0.06 per share. Costco passed about half of the $184 million in refunds to members as lower prices on staples and produce, and plans 33 new warehouse openings in FY2027.

Why it matters

Costco stock trades at roughly 40 times next year's expected earnings — one of the richest valuations in retail — so the quality of each beat matters as much as the size. The $0.15-per-share IEEPA tariff refund was a one-time government rebate that will not repeat in FY2027, leaving investors to judge whether the core business can grow fast enough to fill that gap. With paid membership at a record 84.1 million and 33 new warehouses planned, Costco is betting heavily on scale to justify that premium.

Who this affects

Marketbullish
Medium impact
Retail sector lifted; COST investors gained 2.9% Friday.
Companybullish
High impact
Beat validates expansion; FY2027 CapEx rises to $7.5B.
Competitorsbearish
Medium impact
Walmart's Sam's Club and BJ's face stronger warehouse-club rival.
Industrybullish
Medium impact
Warehouse club model proves resilient amid tariff uncertainty.

Costco vs Walmart, Target, BJ's Wholesale

CostcoCOST$410.75B+0.56%+11.97%40.5x+10.1%
WalmartWMT$862.95B+0.73%+18.36%36.0x+6.2%
TargetTGT$72.02B+0.68%+31.02%17.0x+2.0%
BJ's WholesaleBJ$12.14B+2.44%+10.64%19.8x+9.1%

As of 2026-09-28

How we got here

  1. Costco Q4 FY2026 fiscal quarter ends after 16 weeks.

  2. Costco reports $6.75 Q4 EPS after close, beating $6.54 consensus.

  3. COST shares jump 2.93% to $922.77 in first post-earnings session.

  4. Seven of eight analysts cut price targets citing Costco's 40x valuation.

  5. COST at $928.81; debate continues over quality of tariff-boosted print.

What to watch

  • Q1 FY2027 EPS without $0.15 tariff tailwind; tests organic earnings power.Q1 FY2027
  • 33 warehouse openings pace and $7.5B FY2027 CapEx deployment on track.FY2027
  • Membership renewal rates if consumer spending softens heading into 2027.Q2 FY2027

Educational content only. Not investment advice.

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