Costco Wholesale CorporationNasdaq: COST
Consumer Staples · Consumer Staples Merchandise Retail
$952.85
-1.32%
Vol: 1.2M
Research Digest
Thursday, June 18, 2026
Costco posts 11.6% Q3 revenue growth to $69.15B with membership renewal rates at 92%, while analysts are split between Buy and Hold on valuation at $987 per share.
Costco reported fiscal Q3 2026 (ended May 10) net sales of $69.15 billion, up 11.6% year-over-year, with net income of $2.19 billion ($4.93 diluted EPS, up from $4.28 a year ago). Membership fees rose 11% in the quarter, with 82.9 million paid members and renewal rates of approximately 92% in the U.S. and Canada. Digitally-enabled comparable sales increased approximately 21%, reflecting e-commerce expansion. May 2026 net sales rose 14.5% to $24.01 billion, with comparable sales up 12.5%. The dividend was raised from $1.30 to $1.47 per share quarterly in April 2026 ($5.88 annualized). Shares traded at $986.68 on June 16, with a 52-week high of $1,096.50. Analyst sentiment is mixed: Evercore ISI reiterated Buy on June 4 citing strong U.S. comps, while Wells Fargo maintained Hold on valuation concerns. The primary risk is that the premium valuation leaves little room for error if membership growth or comps decelerate.
Previous Market Intelligence
13 daysJun 17No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 16No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 15No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 14Costco shares hold near record highs on strong May sales and Q3 results, but a milk recall and valuation concerns temper sentiment.Mixed▶
Costco continues to post strong fundamentals, with fiscal Q3 2026 net sales up 11.6% to $69.15B and May net sales up 14.5% to $24.01B (comparable sales +12.5%, digital sales +21%). More recently, Costco issued a recall warning shoppers not to drink a specific milk product, a food-safety incident drawing attention. The stock trades around $980, within a 52-week range of about $844 to $1,096, and is viewed by some as roughly 35% overvalued, prompting investor caution. CEO Ron Vachris received the Muriel F. Siebert Leadership Award. Why it matters: membership-driven sales momentum remains robust even as gas prices reshape retail. The main risk is a stretched valuation and recall-related reputational/operational impact. Average analyst target is near $1,114.
May 21Costco hits all-time high of $1,096.50 May 20; Oppenheimer raises PT to $1,160 from $1,100, Bernstein to $1,192Positive▶
Costco shares hit an all-time high of $1,096.50 on May 20, 2026, with shares closing at $1,074.95 May 21 (range $1,072-$1,090.99). YTD gain exceeds 25%, lifting market cap to ~$485B. Oppenheimer raised its price target to $1,160 from $1,100 on May 18, and Bernstein raised to $1,192 from $1,170 on May 12. April net sales hit $23.92B (+13% YoY). Q2 revenue was $69.6B (+7.4% YoY) with EPS of $4.58 and membership fee revenue +13.6% to $1.355B on 82.1M paid memberships. Valuation concerns persist after the rally. Next earnings July 29.
May 20Oppenheimer raises Costco target to $1,160 as April comparable sales jump 13% and shares hit record highs near $1,094 ahead of May 28 Q3 print.Positive▶
On May 18, Oppenheimer's Rupesh Parikh raised Costco's price target to $1,160 from $1,100 with an Outperform rating, sending shares to record highs near $1,094 (52-week range $844-$1,096). Costco reported April retail-month net sales of $23.92B, up 13.0% YoY, with first-35-week net sales of $197.18B (+9.5%). The board approved a quarterly dividend increase from $1.30 to $1.47 per share ($5.88 annualized). Fiscal Q2 (reported May 15) delivered EPS of $4.58 on revenue of $69.6B (+9.1% YoY), narrowly beating the $4.55 consensus. The next major catalyst is the fiscal Q3 release on May 28. Shares are up ~28% YTD and 19-analyst consensus is Buy. The main risk is valuation, with the stock trading at a steep premium to retail peers.
May 19Costco reported Q2 FY26 EPS of $4.58 beating consensus and posted April net sales of $23.92B (+13% YoY), with shares hitting a 52-week high.Positive▶
On May 15, 2026, Costco reported fiscal Q2 2026 EPS of $4.58 (beating $4.55 consensus) and revenue of $69.6 billion (+9.1% YoY). Costco reported April net sales of $23.92 billion (+13.0% YoY) with comparable sales up 11.6%, and 35-week net sales of $197.18 billion (+9.5% YoY). The company raised its quarterly dividend by 13%, pushing shares to a 52-week high of $1,067.80; stock traded at $1,076.04 on May 18. Costco purchased a 55-acre Fort Myers, FL development site as it accelerates toward a target of 30 new stores per year. Bernstein raised its price target to $1,192 from $1,170. Bear case: a federal jury in California found Costco liable for disability discrimination against a former employee, and the stock's premium valuation leaves little room for execution slip-ups; next earnings May 28.
May 18Costco reported April net sales of $23.92 billion, up 13% year-over-year, while Bernstein raised its price target to $1,192 ahead of the May 28 earnings release.Positive▶
Costco posted April retail-month net sales of $23.92 billion, a 13% jump from $21.18 billion a year ago, signaling continued traffic and membership strength heading into its May 28 earnings report. The company also announced a 55-acre land purchase in Fort Myers, Florida — one of the largest recent retail land deals in Southwest Florida — to accelerate U.S. store openings. Bernstein responded by raising its price target to $1,192 from $1,170. The stock closed at $1,048.95 on May 15, up 0.74%. The main risk is valuation: shares trade at roughly 54x trailing earnings versus an industry average near 18x, leaving little room for any sales deceleration. Investors will watch fiscal Q3 results closely on May 28.
May 15Costco April net sales jump 13% to $23.92B with digital sales up 21.6% YTD; Deutsche Bank and Bernstein lift targetsPositive▶
Costco reported April net sales of $23.92B for the four weeks ended May 3, up 13.0% YoY, with comparable sales up 11.6% (excluding gas/FX adjustments). Year-to-date over 35 weeks, total comparable sales rose 7.8% and digitally-enabled comparable sales jumped 21.6%. Costco purchased a 55-acre Fort Myers, Florida site — one of the largest recent SW Florida retail land deals — as it pushes toward 30 new stores annually including international. The international footprint includes 115 stores in Canada, 37 in Japan, 29 in the U.K., and seven in China. Deutsche Bank raised its target to $1,106 from $1,104 on May 7, and Bernstein raised its target to $1,192 from $1,170 (Outperform). Shares rose 2.2% on May 12 to around $1,021.88, trading near $1,033 by May 14.
May 14Costco trades +1.1% on May 13 at ~$1,033 after April sales report (released May 6) showed net sales of $23.92B (+13.0% YoY) and comps +11.6%; digital comps +18.4%.Positive▶
Costco shares traded 1.1% higher on May 13, 2026 around $1,033, supported by the April sales report released on May 6: net sales of $23.92B for the four weeks ended May 3, up 13.0% YoY from $21.18B. Comparable sales rose 11.6% (adjusted total-company comps +7.8%) and digital comps surged 18.4%. Year-to-date 35-week net sales hit $197.18B, +9.5% YoY. The company also disclosed a $55M land acquisition in Florida and its first direct purchase order from GEN Korean BBQ. The stock is up 17.0% YTD, and the fiscal Q3 earnings report is scheduled for May 28, with consensus among 19 analysts at Buy. Risk: COST trades at premium multiples and 24/7 Wall St flagged a 'sell in May' setup; any deceleration vs the elevated April comp print at the May 28 print could trigger a re-rate.
May 13Costco April sales rose 13% YoY to $23.92B with e-comm comps up 18.8%; shares closed at $1,008.79 on May 8 (above $1,000) and quarterly dividend raised to $1.47 payable May 15.Positive▶
Costco reported April retail sales of $23.92B for the four weeks ended May 3, up 13.0% YoY (with Easter calendar shift adding ~1.5-2pts). YTD through 35 weeks, comparable sales rose 7.8% and digitally-enabled comps rose 21.6%. April e-commerce comps were up 18.8%. Paid memberships hit 82.1M with a 89.7% worldwide renewal rate; membership fee income grew 13.6% to $1.355B. Costco raised its quarterly dividend to $1.47 per share (from $1.30), payable May 15 to holders of record May 1. The stock closed at $1,008.79 on May 8 and is up ~17% YTD. T-Mobile is enabling online redemption of Costco membership perks, and Costco added chicken tenders to the food court. TD Cowen turned bullish after a HQ visit. Valuation remains stretched (~52 trailing P/E, ~46 forward, PEG of 5). Consensus Buy across 19 analysts.
May 12Costco's April net sales jumped 13% to $23.92B with digital comparable sales up 18.8%, and the board raised the quarterly dividend 13% to $1.47/share (from $1.30); BofA reiterated PT of $1,185.Positive▶
Costco reported strong April 2026 results: net sales rose 13.0% YoY to $23.92B for the four weeks ended May 3. Year-to-date (35 weeks), total comparable sales rose 7.8% and digitally-enabled comparable sales climbed 21.6%. Paid memberships reached 82.1M with a 89.7% worldwide renewal rate, and membership fee income grew 13.6% to $1.355B. The board raised the quarterly dividend to $1.47 from $1.30 (annualized $5.88), payable May 15. Q2 2026 EPS of $4.58 narrowly beat $4.55. Stock crossed $1,000 in May, up 17% YTD. BofA's $1,185 PT implies ~17% upside; consensus Buy across 19 analysts. Some valuation concerns persist after the run.
May 11Costco reported April net sales of $23.92B, up 13.0% YoY, with adjusted total company comps +7.8% and digital comps +18.4%, though shares face pressure from membership renewal-rate concerns ahead of the May 28 Q3 print.Positive▶
Costco reported April 2026 (4 weeks ended May 3) net sales of $23.92B, an increase of 13.0% from $21.18B last year. On an adjusted basis (ex-gas, ex-FX), April total company comps rose 7.8% and digital comps were up 18.4%, sustaining the company's outperformance. The store base reached 928 warehouses globally (637 US/PR). Bank of America set a $1,185 PT after the print. However, the stock trades at ~53x earnings and questions persist around slipping membership renewal rates, with the next update on May 28 when Costco reports fiscal Q3. CEO Ron Vachris flagged ongoing tariff uncertainty. Costco also continued shareholder returns with a 13% dividend hike in line with its 12% 10-year average. Key risk: any softening in renewal rates or membership growth would directly compress the high-multiple thesis.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| WMTWALMART | $117.34 | -0.67% | -12.0% | 35.9x | 0.60 | $940.1B |
| COSTCOSTCO | $952.85 | -1.32% | -11.8% | 42.7x | 0.87 | $428.2B |
| TGTTARGET | $131.37 | +2.79% | +0.5% | 14.4x | 0.99 | $58.1B |
| DGDOLLAR | $112.30 | +3.32% | +5.0% | 13.6x | 0.26 | $24.0B |
| DLTRDOLLAR | $111.03 | +4.34% | +17.4% | 13.9x | 0.66 | $20.4B |
| PGPROCTER | $151.58 | +0.68% | +6.5% | 21.2x | 0.39 | $350.6B |
Key Fundamentals
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52-Week Range
Moving Averages
Price below 200d MA — bearish structure.