Costco Wholesale Corporation operates membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. It offers a wide range of merchandise, including food and non-food items, as well as fresh food. The company also provides ancillary services such as gasoline, pharmacies, optical, food courts, hearing-aid centers, and tire installation centers, and engages in e-commerce, business centers, travel, and other businesses. Formerly known as Costco Companies, Inc., it changed its name to Costco Wholesale Corporation in August 1999 and was founded in 1976, based in Issaquah, Washington.
Costco Expands Same-Day Delivery via DoorDash and Uber
Costco is expanding its same-day delivery network through new and broadened partnerships with DoorDash and Uber as it looks to grow e-commerce sales and compete with retailers like Walmart and Target. DoorDash announced that Costco members can now order groceries, dry goods, household essentials and other products through the DoorDash app for fast delivery from their local store, extending an existing relationship between the companies in Australia, New Zealand, Sweden, Iceland and Puerto Rico. Uber announced a major expansion of its Costco partnership to deliver products in 47 states, up from 17 states, with nearly 600 Costco locations now available on the Uber Eats app for on-demand and scheduled delivery. Costco is also available on Uber Eats in Canada, Mexico, Japan, Taiwan, France and Spain. The expansion of food and grocery delivery platforms into retail delivery underscores the rapid evolution of the parcel delivery market, where online sales now represent 16.5% of total retail sales and are growing at about 10% per year, according to the U.S. Census Bureau, while alternative carriers now make up about 8.5% of the parcel freight market, up from 2.6% of parcel volume in 2021, according to The Colography Group.
Costco Expected to Declare Record Special Dividend After September 24 Earnings
Costco is expected to declare a record special dividend later this year, a possibility that could be signaled when the warehouse club operator reports its fiscal fourth-quarter results on Sept. 24. The company has already reported net sales rose 11.3% to $93.9 billion for the 16 weeks of the fiscal period that ended late last month, fueled largely by a 10.7% jump in comps at its stateside stores. Costco has delivered 22 straight years of dividend hikes, but its 0.7% yield has been overshadowed by special distributions declared every two or three years: $15 a share on Dec. 27, 2023, $10 on Dec. 1, 2020, $7 on May 8, 2017, $5 on Feb. 5, 2015, and $7 on Dec. 6, 2012. With three years now elapsed since the last payout, the article argues a substantial one-time dividend is likely before the end of this year, though the last two December payouts were declared in November and December rather than at the earnings report itself. Any language during the Sept. 24 earnings call suggesting the cash Costco has been stockpiling since 2023 is growing would be a dead giveaway.
Costco Reports Q4 September 24 With DoorDash Deal Too Late to Count
Costco reports fiscal fourth-quarter results after the close on Wednesday, September 24, 2026, and its same-day delivery tie-up with DoorDash went live after the quarter closed, so the new channel cannot contribute to reported sales or earnings. The quarter covers the roughly 16-week period ending in late August or early September, and management has disclosed no fee split, margin effect, or volume target for the partnership. Costco's digital business was already accelerating without it, with fiscal Q3 2026 digitally-enabled comparable sales of 21.5% and e-commerce site and app traffic up 37%, following 22.6% digital comps in Q2. Membership economics remain the moat: Q3 brought 82.9 million paid members, membership fees of $1.37 billion, up 10.7%, and a worldwide renewal rate of 89.7%. The stock enters the quarter at $893.93, down 7.01% over the past month, and trades at a P/E of 45x, with analysts carrying a target of $1,072.20.
Costco Expected to Post Higher Earnings and Revenue for Quarter Ended August 2026
Costco is expected to report a year-over-year increase in earnings on higher revenues when it releases results for the quarter ended August 2026 on September 24. The Zacks Consensus Estimate calls for quarterly earnings of $6.48 per share, a year-over-year change of +10.4%, on revenues of $94.82 billion, up 10.1% from the year-ago quarter. The consensus EPS estimate has been revised 0.18% higher over the last 30 days, but the Most Accurate Estimate sits below the consensus, producing an Earnings ESP of -0.19% and a Zacks Rank of #3, a combination that makes an earnings beat difficult to predict conclusively. In the last reported quarter, Costco was expected to post earnings of $4.91 per share and actually produced $4.93, a surprise of +0.41%, and the company has beaten consensus EPS estimates four times over the last four quarters.
Uber and Costco Expand Delivery Partnership to 47 States
Uber Technologies and Costco have significantly expanded their U.S. partnership, making Costco delivery through Uber Eats available to millions of additional customers across 47 states, up from 17 states previously. Nearly 600 Costco locations are now accessible through the Uber Eats platform, offering both on-demand and scheduled delivery of fresh produce, bulk groceries, household essentials and Costco-exclusive merchandise. As part of the expanded partnership, eligible Costco members can receive a 50% discount on an annual Uber One membership during the first year, followed by a 20% discount in subsequent years, while participating Costco stores and Costco.com will offer Uber and Uber Eats gift cards worth $100 for $79.99 for a limited period. Consumers can also purchase a Costco membership directly through Uber Eats for a limited time and receive 30% off their first eligible Costco order, and Uber One members can access delivery without Uber fees on eligible grocery and retail orders exceeding $60. The U.S. expansion builds on the companies' existing international relationship, with Costco also available through Uber Eats in Canada, Mexico, Japan, Taiwan, France and Spain.
Middle-Aged Americans Now Account for Nearly Half of New Bankruptcies
Americans aged 40 to 59 now account for 49.9% of all new consumer bankruptcies, the largest share for that age bracket since the first quarter of 2017, according to data shared by The Kobeissi Letter. Within that group, consumers aged 40-49 made up 26.8% of new bankruptcies, the highest share for that age group since the third quarter of 2015 and the largest of any single bracket, while the 50-59 group accounted for another 23.1%. The combined 49.9% remains below the 54.3% peak recorded in the fourth quarter of 2011 following the financial crisis. Americans 70 and older now make up 21.5% of new bankruptcies, their largest share since the second quarter of 2017, while adults aged 18-29 account for just 5.9%, their lowest share since mid-2014. Household debt is climbing across the board, with credit card and auto loan balances each rising 1.7% in the second quarter of 2026 and home equity lines of credit up for a 17th consecutive quarter, according to the Federal Reserve Bank of New York, while 10.6% of student loan balances are now 90 or more days past due. U.S. annual inflation held at 3.4% in August, matching July, with gasoline jumping 3.9% and accounting for more than a third of the monthly increase, and the national average for gas hit $4.32 a gallon Monday while diesel climbed to a record $6.23 a gallon amid intensifying conflict in the Middle East, according to AAA. Costco Wholesale Corp. this week raised prices on its private-label motor oil and capped purchases at two units per member per week as rising crude oil costs ripple through the auto care aisle.
Amazon raises minimum hourly wage to $20 for US operations staff
Amazon.com announced on the 16th that it will raise the minimum hourly wage for full-time employees in its US operations division by $1 to $20. It also announced a new benefit, Day 1 Financial, which will allow eligible employees and their families to access low-cost banking services for life through First Tech Federal Credit Union. The company already offers benefits including health insurance starting at $5 a week, free Prime membership, and a prepaid education program, and it said that with this move, average total compensation including the value of its benefits package will exceed $32 an hour. Among competitors, Walmart's starting pay for US employees is $14 an hour, Target's minimum wage is $15 an hour, and Costco is raising the minimum wage for new hires to $20 in 2025.
Walmart and SCAN Health Plan to Offer Co-Branded Medicare Advantage Plans
Walmart and SCAN Health Plan announced a partnership on Wednesday to offer co-branded Medicare Advantage plans in two states, targeting a pool of more than two million Medicare enrollees. The plans, pending regulatory approval, may include pharmacy, vision, food, and over-the-counter benefits, with open enrollment for Medicare Advantage beginning Oct. 15. A central feature of the partnership is Walmart's Everyday Health Signals platform, an AI tool designed to provide personalized nutrition and wellness guidance based on members' shopping preferences and self-reported wellness goals. SCAN Group is a nonprofit whose health plan serves nearly 460,000 members across 33 counties in California, Arizona, Nevada, Texas, New Mexico, and Washington, with about half a million members and patients across all of its affiliated entities. The Walmart deal follows a similar move by SCAN with Costco Wholesale, which covers two states for Medicare Advantage products and a third for a Medicare supplement plan, with a combined pool of around five million Medicare enrollees. The two companies did not disclose the financial terms of Wednesday's deal.
Costco raises motor oil prices, limits purchases as supply pressure builds
Costco Wholesale Corp. is raising motor oil prices and limiting purchases as supply pressure builds in energy markets. The bulk seller of common products through its membership warehouses is making what amounts to a tiny adjustment within its huge business, but the timing makes it worth watching. Energy markets have been under pressure, and rising oil prices could eventually reach consumers at the gas pump, in shipping costs and on store shelves. Costco's reputation rests largely on keeping prices low for members, so when costs rise the company must decide how much of the increase to absorb and how much to pass on to buyers. The purchase restrictions suggest Costco would rather keep goods on hand than risk some consumers buying exceptionally large amounts. The key question is whether this is an isolated incident; if similar price increases surface on more products, Costco buyers could feel rising energy costs far more broadly, which is the next thing investors should watch.
Costco Doubles Motor Oil Price and Caps Purchases as Crude Nears $100
Costco has doubled the price of its full-synthetic motor oil and begun rationing purchases as crude oil pushes toward $100 a barrel. A 10-quart case that cost roughly $30 now runs $57.99, with purchases capped at two units per member per week. U.S. diesel crossed $6 a gallon for the first time this week, and global oil inventories have drawn down more than 500 million barrels since the U.S.-Iran conflict began. The pressure on Costco is more intense because its signature Kirkland oil carries GM's Dexos1 Gen 3 certification, which requires manufacturers to pay GM separately per product and per unit sold, eroding the DIY savings case. It is not just Costco: Mobil 1 is also capped, at five units, with six quarts running $44. The International Energy Agency cut its 2026 global oil supply forecast to 102 million barrels a day in August and now projects a third-quarter deficit of 1.8 million barrels a day, while Chevron CEO Mike Wirth said last week that the buffers that had cushioned prior price spikes are now exhausted.
Costco Digital Comps Surge 17.9% in August, Outpacing Total Comps
Costco Wholesale Corporation reported digitally enabled comparable sales jumped 17.9% for the four-week retail month ended Aug. 30, 2026, outpacing its total comparable sales increase of 8.4% for the same period. For the 16-week fourth quarter, digitally enabled comparable sales expanded 19.5%, while fiscal 2026 digital comps posted a 20.9% increase. On an adjusted basis excluding foreign exchange and gasoline price impacts, digitally enabled sales grew 17.9% in August, 19.8% in the fourth quarter and 20.7% for the 52-week fiscal year. Costco operates e-commerce sites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan, Australia and China. Among peers, Target Corporation's comparable digital sales rose 8.7% in the second quarter of fiscal 2026, while BJ's Wholesale Club Holdings, Inc. posted digitally enabled comparable sales up 30% with two-year stacked growth of 64%. Costco shares have fallen 6.9% over the past three months, and the Zacks Consensus Estimate implies current financial-year sales and earnings per share growth of 9.8% and 13.5%, respectively.
Synergy CHC Files Chapter 11 After Costco Drops Focus Factor
Synergy CHC Corp., the maker of Focus Factor, filed for Chapter 11 bankruptcy on September 4, 2026, in the U.S. Bankruptcy Court for the District of Columbia after Costco told the company in July it would discontinue Focus Factor products following a 16-year relationship. Costco accounted for approximately 58% of Synergy's net revenue in the fiscal year ended December 31, 2025, and its decision triggered an $18.9 million debt acceleration from the company's lender. Reckitt Benckiser, whose Neuriva brain supplement is already sold at Costco for $43.99 per 50-capsule bottle, is positioned as the clearest beneficiary, with H1 2026 Core Reckitt like-for-like net revenue growth of 2.7% accelerating to 4.2% in the second quarter, a 60.9% gross profit margin, a 24.8% adjusted operating profit margin, £419 million in first-half free cash flow, and roughly £3 billion returned to shareholders through dividends and buybacks. Reckitt also announced a 5% increase in its interim dividend and an additional £500 million share buyback, with full-year 2026 guidance calling for 4% to 5% like-for-like net revenue growth in Core Reckitt. RBGLY trades at $14.00, down 10.62% year-to-date, with a trailing P/E of 11.36 and a forward P/E of 14.24.
Costco Raises Quarterly Dividend 13% as Payout Doubles Since 2020
Costco Wholesale announced a 13% increase to its quarterly dividend in April, lifting the payout to $1.47 per share from $1.30 a year earlier. The warehouse retailer, which operates 939 stores including 647 in the U.S., has more than doubled its quarterly payout since 2020, when it paid $0.70 per share. At a recent share price of $902, a $10,000 investment buys roughly 11 shares and generates about $65 in annual income at the 0.65% dividend yield, though Costco's occasional special dividends are not counted in that yield calculation. The company's most recent special dividend, paid in January 2024, was $15.00 per share, which would generate $165 on an 11-share position, following earlier special payouts of $10.00 in December 2020, $7.00 in May 2017, $5.00 in February 2015 and $7.00 in December 2012.
Kroger loses $12 billion in CPG spending to Amazon, Walmart and Costco
Kroger has lost more than $12 billion in consumer packaged goods spending to Amazon, Walmart and Costco over the past year, according to a recent Numerator report. Within that total, CPG spending at Kroger and Ralphs stores declined by $715 million and $516 million respectively, as customers made 9 million and 5.5 million fewer trips than a year earlier, producing direct losses of more than $1 billion for the retailer. Lower-income shoppers pulled back their CPG spending by 5.2% year over year and made 30 million fewer trips, a shift the report describes as creating a $1 billion spending gap for Kroger, even as the chain added more than 1 million high-income households and lost 700,000 lower-income ones. On Kroger's September 11 earnings call, CEO Greg Foran said customers remain under pressure from reduced SNAP benefits, higher fuel prices and softer consumer confidence, and CFO David Kennerley said sales were softer than expected, with identical sales excluding fuel up just 0.2% in the second quarter of 2026. Kroger cut its full-year 2026 outlook for identical sales excluding fuel to growth of 0.2% to 0.8%, down from a previous expectation of 1% to 2%, while leaning into private label, including Private Selection, whose sales rose more than 14% in the quarter, and expanding its low-price Smart Way brand.
Costco's 1-Ounce Gold Bar Price Jumps 125% to $4,459.99
Costco's 1-ounce PAMP Suisse Lady Fortuna Veriscan gold bar now sells for $4,459.99, a 125% increase from its late-2023 launch price of $1,979.99, and the warehouse retailer is limiting members to one transaction per membership with a maximum of 4 units per 24 hours. The Rand Refinery bar, the other option Costco began selling in late 2023, originally went for $1,949.99. At the time of writing, gold was trading at about $4,300 per ounce, according to Goldprice.org, with the gap between the bar price and spot attributed to additional carrier fees on Costco's side; members can still earn 2% cash back on the purchase, netting $89.20 at mid-September's going rate. The increase tracks broader gains in the gold market, which had a banner year in 2025 before retreating in early 2026 and now stabilizing. Bridgewater Associates founder Ray Dalio told CNBC that people typically don't hold an adequate amount of gold in their portfolios and that gold is a very effective diversifier when bad times come, while JPMorgan Chase CEO Jamie Dimon has said gold could easily go to $5,000 or $10,000.
Mama's Creations Posts 55% Revenue Jump in Fiscal 2027 Second Quarter
Mama's Creations reported second quarter fiscal 2027 results on September 3, with revenue rising 55% to $54.6 million, net income more than doubling to $2.6 million, and adjusted EBITDA climbing 68.9% to $5.5 million. Distribution is expanding: October brings the company's first placement inside banner Kroger, with over 100 stores in the Louisville division stocking four items, while Costco has confirmed it for a second-half multi-vendor mailer across all eight national regions, Walmart shelf space has grown past 2,300 stores, and Sam's Club is adding 300 clubs for a new panko chicken product this quarter. Gross margin ticked up to 24.0% from 23.6% in the first quarter, operating expenses fell 160 basis points to 18.5% of revenue, and a July stock offering brought in $108.6 million, pushing cash to $138.6 million against just $4.8 million of total debt as of July 31. CEO Adam Michaels flagged the challenge that chicken bottom percentages are not growing as fast as overall volume, since those dark meat cuts carry higher margins than the portion chicken products driving the fastest sales gains, and the Bay Shore facility acquired last year is still working toward the company's corporate average margins. Hedge fund ownership rose from 17 funds to 30 in the most recent quarter, 7.30% of the float is sold short, and the stock trades at 86.56 times forward earnings as of September 11.
Accenture Survey Finds Holiday Shoppers Spending 12-15% More Than 2025
A new Accenture survey finds that U.S. consumers are already holiday shopping in September and are on track to outspend 2025, with 20% having started before August and 90% saying they will finish before Black Friday and Cyber Monday. Accenture Global consumer goods, retail, and travel lead Kath Gramling said the average household will spend $737 this holiday season, while higher-income households will spend around $956. Consumers will spend 12% to 15% more than last year, according to the survey and Accenture's June macro foresight analysis, but that increase reflects higher prices rather than more purchases, with unit volumes expected to decline. Shoppers plan to do the bulk of their buying at mass merchants and wholesale clubs, with 50% of spending in apparel and 35% in food and beverage, focusing on back-to-basics items such as clothing for children, small beauty luxuries for parents, and beverages for holiday occasions. Gramling said the advice to retailers and brands is to focus on winning the occasion, or winning the holiday.
Home Depot Expands Food Truck Program to Rival Costco's Food Court
Home Depot is expanding its Food Operations program, bringing local and regional food vendors and food trucks to its stores nationwide. The initiative offers breakfast, lunch, and dinner outside Home Depot locations, a strategy the company says is designed to provide convenient food options while strengthening connections between its stores and their local communities. Vice President of Merch Services Richard Goodrich said the mission is to provide local food options that enhance the shopping experience. Unlike Costco's standardized food court with a national menu, Home Depot is bringing local food trucks and vendors to individual stores. The timing follows Home Depot's reported $47.9 billion in second-quarter fiscal 2026 sales, up 5.7% from a year earlier, with comparable sales up 1.7% and U.S. comparable sales up 1.3%, though executives noted larger discretionary projects remain under pressure amid historically low housing turnover and higher mortgage rates. The company received $730 million in tariff refunds during the quarter, with $685 million reducing the cost of goods sold, but said those benefits would be offset by incremental cost pressures during the year.
Synergy CHC Corp., the maker of Focus Factor supplements, has filed for Chapter 11 bankruptcy after Costco Wholesale Corporation decided to stop carrying its products, a move that threatened the company's financial stability. Costco, which accounted for approximately 58% of Synergy's net revenue in the fiscal year ended December 31, 2025, informed the company on July 15, 2026, that it would discontinue the products, according to an SEC filing. The bankruptcy filing, submitted on September 4, 2026, in the U.S. Bankruptcy Court for the District of Columbia, lists assets between $1 million and $10 million and liabilities between $10 million and $50 million. Synergy also received a Nasdaq notice on August 20 for delayed filing of its quarterly report, which led its lender to accelerate repayment of about $18.9 million. The company continues to operate under Chapter 11 and has not yet announced its future plans.
Costco Wholesale Corporation reported fourth-quarter net sales of $93.9 billion, up 11.3% year over year from $84.4 billion, with digitally enabled comparable sales climbing 19.5% versus a 9.4% companywide comparable-sales gain. Excluding gasoline and foreign-exchange effects, total comparable sales rose 6.7% while digital comparable sales increased 19.8%. For the full fiscal year, digital comparable sales grew 20.9%, or 20.7% on an adjusted basis. The company's shares have fallen 6% over the past three months, and its forward price-to-earnings ratio stands at 40.71, below its 12-month median of 47.12. Zacks Consensus estimates project current-year sales and earnings growth of 9.6% and 13.5%, respectively.
Costco August Sales Rise 9.9% as Digital Sales Jump 17.9%
Costco Wholesale reported $23.70 billion in August sales, up 9.9% despite calendar timing cutting nearly 75 basis points from growth, while shares slipped about 1% to $915.93. Comparable sales rose 8.4%, or 5.4% excluding gasoline and currency effects, and digitally enabled sales surged 17.9%, more than triple the adjusted companywide pace. Fiscal-year net sales climbed 10.2% to $297.3 billion. The stock trades 11.79% below its GF Value estimate of about $1,040, though it remains priced at roughly 46 times earnings, and faster online growth could pressure warehouse economics.
DOJ Expands Beef Price Probe to Eight Retailers Including Walmart and Amazon
The Department of Justice has expanded its beef price investigation to include eight major grocery retailers—Walmart, Costco, Amazon, Kroger, Publix, Albertsons, Aldi, and Ahold Delhaize USA—amid concerns over high beef prices and inflation ahead of the midterm elections. The DOJ announced the probe on September 1, calling beef prices a priority, and it builds on an earlier antitrust investigation into meatpackers launched in May. The average price of ground beef hit $6.89 per pound in July, up 10% from a year earlier, driven by drought, screwworm infestations, and tariffs. The administration has also taken steps to ease prices, including allowing imports of Brazilian and Argentine beef, which drew backlash from ranchers. Meanwhile, meatpackers like Tyson and JBS have reported significant losses, and the DOJ's scrutiny of retailers marks a new front in the effort to address affordability.
Costco August Sales Rise 9.9% as Digital Growth Stays Strong
Costco Wholesale Corporation reported an 8.4% year-over-year increase in total comparable sales for the four weeks ended Aug. 30, 2026, with net sales rising 9.9% to $23.70 billion from $21.56 billion. Excluding the impacts of gasoline prices and foreign exchange, overall total comparable sales rose 5.4% in August, compared with increases of 6.6% in July and 7% in June. Digitally enabled comparable sales grew 17.9% in August, following 17.7% in July and 20.9% in June. Regionally, comparable sales rose 9% in the United States, 4% in Canada, and 9.5% in Other International markets. The company noted that a later Labor Day reduced August total and comparable sales by just under 75 basis points.
Costco Drawn Into Expanded DOJ Beef Pricing Antitrust Probe
Costco Wholesale has been asked by the US Department of Justice for detailed records as part of an expanded antitrust investigation into beef pricing, which now covers major food retailers. The probe seeks information on pricing practices and supply chain arrangements for beef products, with records requested going back to 2020. As a key buyer and seller of beef, Costco's dual role places its pricing policies and supplier relationships within the scope of the review. The inquiry could lead to changes in how Costco structures supplier contracts, sets beef prices, and documents pricing decisions, potentially affecting merchandise margins. Investors should watch for follow-up disclosures from Costco in SEC filings or earnings calls, and whether the DOJ escalates from information gathering to alleging specific violations.
Costco Nears $300 Billion in Sales, Wall Street Sees More Upside
Costco Wholesale Corp. is closing in on a major sales milestone, reporting fiscal 2026 net sales of $297.3 billion, up 10.2% from $269.9 billion a year earlier. August monthly net sales reached $23.70 billion, a 9.9% year-over-year increase, while comparable sales excluding gasoline and foreign exchange rose 5.6% for the four weeks ended Aug. 30 and 6.6% for the full fiscal year. The company noted that the later timing of Labor Day negatively affected August sales by just under 75 basis points. Bank of America analyst Christopher Nardone reiterated a Buy rating with a $1,200 price target, implying roughly 29% upside, arguing that Costco continues to gain share by offering strong value and attracting higher-income shoppers. The key point for investors is that Costco is still producing double-digit annual sales growth even as revenue approaches $300 billion, with the next question being whether comparable sales can reaccelerate after slowing earlier in the year.
Costco Wholesale Corporation is positioned to potentially beat earnings estimates again, according to Zacks Investment Research. The company has surpassed consensus estimates by an average of 0.53% over the last two quarters, with recent surprises of 0.41% and 0.66%. Currently, Costco has a positive Earnings ESP of +1.45%, which, combined with its Zacks Rank #3 (Hold), suggests a high probability of another beat. The next earnings report is expected on September 24, 2026.
Costco's International Markets Show Strong Growth Potential
Costco Wholesale Corporation's international operations are becoming a more significant growth driver, with Other International comparable sales rising 11.2% in the third quarter of fiscal 2026, outpacing the U.S. at 9.4% and Canada at 10.7%. Excluding gasoline and foreign-exchange effects, Other International comps increased 5.9%, slightly below the U.S. and Canada. Over the first 48 weeks, Other International comps advanced 9.8%, with adjusted growth of 6.5%, close to the U.S. rate. Management sees strong expansion potential in China, Korea, Japan, Taiwan, Spain, France, and the U.K., and has launched Executive Membership in China with early adoption exceeding expectations. Costco's shares have risen 9.6% year to date, and its forward P/E of 42.00 is above the industry's 29.38 but below its 12-month median. The Zacks Consensus Estimate projects sales and earnings growth of 9.7% and 13.5% for the current fiscal year, with next year's estimates at 7.8% and 10.2%.
Costco and SCAN Health Plan Partner to Offer Medicare Plans
Costco is making its first major move into Medicare by partnering with nonprofit insurer SCAN Health Plan to offer Costco-branded Medicare Advantage and Supplemental plans. SCAN Group CEO Sachin Jain said the partnership aims to simplify the Medicare experience for older adults, leveraging Costco's strengths in pharmacy, vision, and hearing aids. The plans will initially launch in two states for Medicare Advantage and one state for Medicare Supplemental, though specific states and product details are not yet disclosed due to federal regulations. Jain noted that 70% of SCAN members are already Costco members, and the partnership seeks to provide transparent, reliable benefits. SCAN, which has around 460,000 members across six states, is uncertain about new member numbers but believes the partnership could transform the Medicare Advantage landscape.
Costco Wholesale Corporation reported that traffic from AI search grew at a triple-digit pace in the third quarter of fiscal 2026, though volume remains low. The company said this traffic has the highest conversion rate of all sources directed to its website, and it is working to improve how its merchandise is understood and surfaced by large language models. Costco highlighted appliances and tires as examples where AI search can better communicate included services like delivery, installation, and road-hazard protection. Digitally enabled comparable sales increased 21.5% in the quarter, while e-commerce site and app traffic rose 37%. The company remains in the initial stages of this effort, which could become an increasingly important contributor to digital sales growth if AI-driven traffic continues to scale while maintaining strong conversion.
Costco partners with SCAN Health Plan on Medicare Advantage
Costco is partnering with nonprofit insurer SCAN Health Plan to offer Costco-branded Medicare Advantage plans in two states and a Medicare supplement plan in a third state, pending regulatory approval. SCAN already operates Medicare Advantage plans and serves nearly 460,000 members across six states. The companies are also looking at integrating the plans with services Costco already offers, including a revamped pharmacy experience, over-the-counter benefits, and audiology services. CEO Ron Vachris said selecting SCAN as a partner to deliver a better healthcare experience for seniors is an extension of Costco's commitment to members. The move could deepen Costco's relationship with older Americans and give them more reasons to keep their memberships.
Costco Falls 2.2% as Walmart Sales Miss Hits Retail
Costco Wholesale shares dropped about 2.2% to $935.47 on Thursday after Walmart's weaker-than-expected U.S. comparable sales raised concerns across the retail sector. Walmart's U.S. comparable sales rose just 2.6%, below the 3.8% Wall Street expected, as higher fuel costs squeezed household budgets. Costco's own operating results remain strong, with fiscal third-quarter net sales up 11.6% to $69.15 billion, adjusted comparable sales up 6.6%, digitally enabled sales up 20.8%, and membership-fee revenue up nearly 11% to $1.37 billion. The stock now trades about 9.5% below the GF Value estimate of roughly $1,030, though it still carries a valuation of around 47 times trailing earnings.
Costco Raises Quarterly Dividend 13.1% to $1.47 Per Share
Costco Wholesale raised its quarterly dividend from $1.30 to $1.47 per share on April 15, an increase of roughly 13.1%, bringing the annual rate to $5.88 per share. With shares trading around $960, a $10,000 investment would buy roughly 10.4 shares and yield just over $61 annually, a dividend yield of 0.61%. The company has also declared five special one-time dividends since 2012, including a $15 per share payout in 2024, and another could be on the way soon. While the regular yield is modest, the article notes Costco's business is strong and the stock remains a buy for long-term holders despite an elevated valuation.
Walmart reported second-quarter results that beat analyst expectations while issuing softer-than-expected guidance for the current quarter and raising its full-year outlook. The retail giant posted non-GAAP earnings per share of $0.81, exceeding estimates by $0.07, and revenue of $187.94 billion, surpassing forecasts by $1.12 billion. Despite the beat, Walmart's U.S. sales growth disappointed investors, sending shares lower along with Target and Costco. The company's updated full-year guidance reflects improved expectations for the remainder of the fiscal year.
Costco Wholesale could declare a special one-time dividend later this year, given its growing cash pile and a three-year gap since its last such payout. The warehouse club operator has historically issued special dividends every two to three years, with the most recent being $15 per share on December 27, 2023. Its cash and short-term investments have risen from $15 billion to $20 billion since that payout, while long-term debt remains around $5.7 billion. If Costco follows its pattern of increasing special dividends by at least 40%, the next payout could be $21 per share, yielding about 2.2% on top of the regular 0.6% dividend yield.
Costco Membership Fee Revenue Climbs 10.7% in Third Quarter
Costco Wholesale Corporation reported third-quarter fiscal 2026 membership fee revenues of $1,373 million, up 10.7% year over year, with the September 2024 fee increase contributing a little more than one-fourth of that growth. Excluding the fee increase and foreign exchange effects, membership income still advanced 7%. Executive memberships grew 9.6% to 41.2 million and accounted for 75% of sales, while global renewal rates reached 89.7% and U.S. and Canada renewals ticked up to 92.2%. The company also highlighted that personalized product recommendation carousels delivered conversion rates three times higher than standard rates, generating nearly half a billion dollars in e-commerce sales during the quarter. Costco shares have dropped 10.7% over the past three months, and the stock trades at a forward 12-month price-to-earnings ratio of 42.85, above the industry's 31.18 but below its 12-month median of 45.79.
Costco reported fiscal second quarter revenue of $70.53 billion, up 11.6% year over year and beating analyst estimates by 1.5%, making it the fastest-growing among the four non-discretionary retail stocks tracked. Grocery Outlet posted revenue of $1.19 billion, up 1.1% and exceeding expectations by 2.1%, with its stock rising 6.9% since the report. Albertsons reported revenue of $24.94 billion, flat year over year and missing full-year EBITDA guidance, sending shares down 14.4%. Sprouts Farmers Market reported revenue of $2.33 billion, up 4.7% and in line with estimates, but issued weaker-than-expected EPS guidance for the next quarter and full year.
JD.com Posts First Quarterly Revenue Decline Since Listing
JD.com reported its first year-on-year quarterly revenue decline since listing, alongside a return to operating profit. Improved results in JD Retail and reduced losses in Food Delivery supported group-level operating profitability. The company announced new partnerships with global brands including Chanel and Costco, adding fresh third-party offerings to its platform.
GEN Restaurant Group reports Q2 2026 revenue up 1.2% to $55.7 million
GEN Restaurant Group announced second quarter 2026 revenue rose 1.2% year-over-year to $55.7 million, while net loss widened to $4.6 million from $1.7 million a year earlier. The company also disclosed it received a non-binding letter of intent from a nationwide multi-concept restaurant operator to acquire its U.S. restaurant operations, which would leave GEN as a pure-play consumer packaged goods company retaining 100% of its CPG business. The CPG division, which grew revenue 341% sequentially and surpassed $2 million in June alone, secured purchase commitments from more than 100 Costco warehouses and new distribution agreements with United Natural Foods and C&S Wholesale Grocers. Comparable restaurant sales declined 9.3% in the quarter, and the company exited six underperforming locations. GEN estimates a forward 12-month CPG revenue run rate of $35 million to $40 million based on doors secured and pipeline.
Instacart Q2 revenue beats estimates on customer growth and enterprise expansion
Instacart reported second-quarter revenue of $1.04 billion, exceeding analyst estimates of $1.03 billion and representing 14.1% year-on-year growth. GAAP earnings per share came in at $0.45, missing the consensus estimate of $0.54 by 16.6%, while adjusted EBITDA reached $313 million, above the $297.8 million forecast. CEO Chris Rogers attributed the performance to accelerated net new customer additions, deeper engagement, and the expansion of AI-powered features such as personalized nutrition tags and enhanced substitution models. The company also highlighted growth in its advertising and enterprise segments, including new partnerships with Costco in France and Spain and Morrisons in the UK. Looking ahead, management guided for 14% growth at the midpoint for the third quarter and expects adjusted EBITDA to outpace gross transaction volume growth as it reinvests in core growth drivers.
Costco posts $70.5 billion in quarterly revenue while General Mills reports a full-year net loss
Costco Wholesale reported quarterly revenue of $70.5 billion for the period ended May 2026, up from $63.2 billion a year earlier, while General Mills posted a full-year net loss of $87.6 million for its fiscal year ended May 31, 2026, compared to net income of $2.3 billion in the prior year. Costco's net income for the quarter rose to $2.2 billion from $1.9 billion, and the company recently announced a planned increase to its annual membership fees alongside a new rollout of store entry card scanners. General Mills' revenue for the full fiscal year fell 5% to $18.4 billion, weighed by divestitures and nearly $3 billion in restructuring expenses, and the company is navigating a voluntary product recall of frozen dough while implementing a cost-savings plan. The contrasting results highlight Costco's consistent sales expansion driven by its membership model, while General Mills faces challenges from private-label competition and the divestiture of its yogurt business.
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