TLDR
- Costco Q2 net income rises to $2.04B despite 2.4% stock dip.
- Total revenue grows to $69.6B, fueled by strong U.S., Canada, and intl sales.
- Digital sales surge 22.6%, boosting overall company revenue.
- Comparable sales climb 7.4% quarterly, driven by high merchandise demand.
- 924 warehouses and solid finances support continued expansion and growth
Costco Wholesale Corporation (Nasdaq: COST) closed at $982.57, down 2.40%, despite reporting strong quarterly results. The company posted net income of $2.04 billion for the second quarter of fiscal 2026, an increase from $1.79 billion last year. Total revenue rose to $69.60 billion, reflecting continued growth in sales across all regions.
Costco Wholesale Corporation, COST
Net sales for the quarter reached $68.24 billion, up 9.1% from $62.53 billion a year ago. Membership fees contributed $1.36 billion, increasing total revenue. The company demonstrated consistent operational efficiency, with operating income reaching $2.61 billion for the quarter.
Costco reported net income of $4.04 billion for the first 24 weeks, compared to $3.59 billion last year. Diluted earnings per share rose to $9.08 from $8.06. Both in-store and digitally-enabled sales channels supported revenue growth.
Strong Comparable Sales Across U.S., Canada, and International Markets
Comparable sales in the U.S. grew 5.9% for the quarter and 5.8% for the first 26 weeks, showing steady domestic demand. Canada reported higher growth at 10.1% for the quarter and 8.5% for the 26 weeks. Other international markets, including Asia and Europe, posted 13% quarterly growth and 10.7% year-to-date growth.
Digitally-enabled sales continued to accelerate, increasing 22.6% for the quarter and 21.8% year-to-date. Growth in online channels contributed significantly to total company sales. The shift of Lunar and Chinese New Years positively impacted February sales by approximately 0.5% globally.
Total company comparable sales rose 7.4% for the quarter and 6.8% year-to-date. Sales momentum reflected strong merchandise demand and consistent consumer traffic. Operational adjustments ensured supply chains supported increased volumes across regions.
Expanding Footprint and Solid Financial Position
Costco operates 924 warehouses globally, including 634 in the U.S. and Puerto Rico, 114 in Canada, and multiple locations in Asia and Europe. The company also maintains e-commerce platforms in major markets to support digital growth. Expansion and operational scale continue to strengthen Costco’s competitive position.
The balance sheet shows total assets of $83.64 billion, up from $77.10 billion last year. Current assets increased to $43.13 billion, supported by higher cash and inventory levels. Total equity rose to $32.09 billion, reflecting retained earnings growth and stable capital management.
Cash flow from operations reached $7.68 billion for the first 24 weeks, up from $6.01 billion last year. Capital expenditures amounted to $2.82 billion, primarily for warehouse expansions and technology investments. Costco’s financial performance highlights its ability to sustain growth while maintaining liquidity and operational flexibility.
Costco’s fiscal results demonstrate record net income, robust comparable sales, and strong operational execution. Continued global expansion and digitally-enabled channels underpin long-term growth potential. The company maintains a healthy financial position to support ongoing business momentum.
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