Costco Wholesale Corp Reports Strong Second Quarter Results for Fiscal 2026
Costco Wholesale Corporation (NASDAQ: COST) delivered impressive financial results for the second quarter and year-to-date periods of fiscal 2026, showcasing robust sales growth and increased net income. The results, which cover the twelve weeks ending February 15, 2026, and the first 24 weeks of the fiscal year, reflect the company's strong performance amid a competitive retail environment.
1. Key Financial Highlights
For the second quarter, Costco reported net sales of $68.24 billion, marking a 9.1% increase from $62.53 billion in the same quarter last year. The surge in sales continued into the first 24 weeks of fiscal 2026, where net sales reached $134.22 billion, an 8.7% increase from $123.52 billion in the prior year.
Comparable Sales Performance
Costco's comparable sales, which exclude the impacts of gasoline price fluctuations and foreign exchange, exhibited strong growth across various regions:
| Region | 12 Weeks | Adjusted 12 Weeks | 24 Weeks | Adjusted 24 Weeks |
|---|---|---|---|---|
| U.S. | 5.9% | 6.4% | 5.9% | 6.1% |
| Canada | 10.1% | 7.6% | 8.3% | 8.3% |
| Other International | 13.0% | 7.1% | 11.0% | 7.0% |
| Total Company | 7.4% | 6.7% | 6.9% | 6.5% |
| Digitally-Enabled | 22.6% | 21.7% | 21.6% | 21.2% |
The results indicate that sales in Canada and international markets outperformed those in the U.S., with Canada and Other International regions growing by 10.1% and 13.0%, respectively. Notably, Costco's digitally-enabled sales saw an astonishing increase of 22.6% for the quarter.
2. Profitability and Earnings Per Share
Costco's net income for the second quarter was $2.035 billion, translating to $4.58 per diluted share, up from $1.788 billion or $4.02 per diluted share from the previous year. For the first 24 weeks of fiscal 2026, net income totaled $4.04 billion, or $9.08 per diluted share, compared to $3.59 billion or $8.06 per diluted share last year.
3. February Sales Results
In a separate report for the four-week period ending March 1, 2026, Costco reported net sales of $21.69 billion, a 9.5% increase from $19.81 billion in February 2025. Year-to-date sales for the first 26 weeks reached $144.85 billion, up 8.6% from $133.36 billion a year prior.
The comparable sales for February exhibited the following growth:
| Region | 4 Weeks | Adjusted 4 Weeks | 26 Weeks | Adjusted 26 Weeks |
|---|---|---|---|---|
| U.S. | 5.2% | 6.0% | 5.8% | 6.1% |
| Canada | 12.8% | 9.3% | 8.5% | 8.2% |
| Other International | 17.9% | 10.9% | 10.7% | 6.6% |
| Total Company | 7.9% | 7.0% | 6.8% | 6.4% |
| Digitally-Enabled | 21.8% | 20.8% | 21.8% | 21.3% |
The Lunar and Chinese New Year, which occurred on February 17 this year, positively influenced sales, contributing approximately 4.0% to Other International sales and 0.5% to Total Company sales.
4. Expanding Global Presence
As of the press release date, Costco operates 924 warehouses worldwide, with 634 located in the United States and Puerto Rico, and the remainder distributed across various countries including Canada, Mexico, Japan, the United Kingdom, and several more. This expansive footprint, combined with a growing e-commerce presence across multiple international markets, positions Costco favorably to continue its growth trajectory.
5. Conclusion
Costco's strong second quarter results for fiscal 2026 highlight the company's ability to drive revenue growth and profitability amidst a challenging retail landscape. With robust sales across its core markets and growing digital sales, Costco remains a formidable player in the wholesale retail sector. The conference call scheduled for March 5, 2026, will provide further insights into the company's performance and strategic initiatives moving forward.
