COST Reports Q4 2025 Earnings: EPS Up 11.0%, Exceeds Estimates

Costco Wholesale Corporation (COST.US) reported strong financial results for the 16-week fourth quarter ended August 31, 2025. The company announced net income of $2.610 billion, or $5.87 per diluted share, representing an 11.0% increase compared to $2.354 billion, or $5.29 per diluted share, in the prior year.

This diluted EPS of $5.87 surpassed the analyst estimate of $5.82 for the quarter. Net sales for the quarter grew 8.0%, reaching $84.4 billion, up from $78.2 billion in the same period last year.

Strong Membership and Sales Growth

Costco experienced robust growth in its membership metrics and comparable sales across various regions. Worldwide membership renewal rates stood at 89.8%, with the US/Canada renewal rate even higher at 92.3%.

Paid memberships increased by 6.3% to 81.0 million, contributing to a 14.0% growth in membership income excluding last year's non-recurring tax benefit. Total company comparable sales, excluding the impacts of gasoline prices and foreign exchange, rose by 6.4%, driven by a 3.7% increase in comparable traffic.

Key Business Drivers and E-commerce Performance

E-commerce continued to be a significant growth driver, with comparable sales increasing by 13.6%, and adjusted e-commerce comparable sales up 13.5%. Top-performing sales categories included Gold/Jewelry, Housewares, Tires, Apparel, Sporting Goods, Majors, Small Electrics, and Garden/Patio.

Digital enhancements, such as data augmentation for search, an online waiting room for popular items, and relevant member messaging, contributed to a 27% increase in e-commerce site traffic. The company also saw a 13% rise in Costco Logistics items delivered, underscoring its expanding digital footprint.

Operational Expansion and New Offerings

Costco continued its strategic expansion, adding nine new warehouses during the fourth quarter of fiscal year 2025, bringing the total to 914 warehouses globally. Notable new locations included Malmo, Sweden, and Allen, Texas.

The company also introduced several new Kirkland Signature items, including apparel, organic extra firm tofu, ribbon, wild blueberries, grass-fed beef sticks, combo calzone, chicken jerky treat for dogs, and whey protein, further enhancing value for its members.