Costco | 10-Q: Q2 2026 Earnings Report

Costco reported robust financial results for Q2 FY2026, with total revenue climbing 9% to $69.6 billion, driven by a 9% increase in net sales to $68.2 billion and a 14% rise in membership fees to $1.36 billion. Comparable sales grew 7% globally, with digitally-enabled sales surging 23%. Net income reached $2.04 billion, or $4.58 per diluted share, up 14% from $1.79 billion in the prior year.The company's performance was bolstered by increases in both shopping frequency and average ticket, each up approximately 3-4%. Core merchandise categories saw sales growth across all segments, while warehouse ancillary and other businesses increased by 9%. The renewal rate remained strong at 92.1% in the U.S. and Canada, though slightly impacted by increased online membership sign-ups.During the quarter, Costco opened four new warehouses, including one relocation, expanding its global presence to 924 locations. The company maintained strong liquidity with $18.2 billion in cash and investments, while operating cash flow improved to $7.7 billion for the first half. Management plans capital expenditures of approximately $6.5 billion for fiscal 2026, focusing on new warehouse openings and digital capabilities enhancement.

Costco reported robust financial results for Q2 FY2026, with total revenue climbing 9% to $69.6 billion, driven by a 9% increase in net sales to $68.2 billion and a 14% rise in membership fees to $1.36 billion. Comparable sales grew 7% globally, with digitally-enabled sales surging 23%. Net income reached $2.04 billion, or $4.58 per diluted share, up 14% from $1.79 billion in the prior year.The company's performance was bolstered by increases in both shopping frequency and average ticket, each up approximately 3-4%. Core merchandise categories saw sales growth across all segments, while warehouse ancillary and other businesses increased by 9%. The renewal rate remained strong at 92.1% in the U.S. and Canada, though slightly impacted by increased online membership sign-ups.During the quarter, Costco opened four new warehouses, including one relocation, expanding its global presence to 924 locations. The company maintained strong liquidity with $18.2 billion in cash and investments, while operating cash flow improved to $7.7 billion for the first half. Management plans capital expenditures of approximately $6.5 billion for fiscal 2026, focusing on new warehouse openings and digital capabilities enhancement.