COST earnings analysis
What we found in COST's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Costco's Q3 2026 results showed strong growth, reporting revenue of $70.53 billion and EPS of $4.93, both exceeding analyst expectations. Notably, comparable sales were up 10%, driven by increased membership fees of 11% and rising traffic to warehouses, indicating robust consumer demand.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Total revenue for Q3 2026 was $70.53 billion, up 12% from $63.21 billion in Q3 2025.
- Increased EPS
- Diluted EPS rose to $4.93, compared to $4.28 in Q3 2025, marking a significant 15% increase.
- Higher Membership Fees
- Membership fee revenue grew 11% to $1.373 billion, reflecting strong member growth and fee increases.
- Positive Cash Flow
- Net cash provided by operating activities was $11.133 billion, an increase from $9.468 billion in the previous year.
- Segment Growth
- The U.S. segment revenue increased by 11% to $51.434 billion, while Canada and Other International segments also saw revenue growth.
- Improved Gross Margin
- Gross margin percentage improved slightly to 11.04%, despite the impact of gasoline price inflation.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Rising Inventory Levels
- Merchandise inventories increased to $19.418 billion from $18.116 billion year-over-year, raising concerns about overstock risks.
- Escalating Current Liabilities
- Total current liabilities rose significantly to $42.125 billion compared to $37.108 billion, increasing financial leverage risk.
- Potential Regulatory Risks
- Ongoing legal proceedings related to labor practices may have material financial implications.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $4.93
- Gross margin
- 11.04%
- Operating margin
- 4.0%
- Segment
- U.S.: 51.434B
- Segment
- Canada: 9.410B
- Segment
- Other International: 9.683B
What they said about what is next.
Management anticipates continued growth in revenue driven by comparable sales and member sign-ups.
The filing reads better than the one before it.
What came before.
- 10-Q · March 11, 2026
- Costco reported a strong second quarter (12 weeks) with total revenue of $69,597 million, up $5,874 million (+9.2%) versus the prior-year quarter, and diluted EPS of $4.58, up $0.56 (≈13.9%). Gross margin and operating…
- 10-Q · December 17, 2025
- Costco reported first-quarter fiscal 2026 revenue of $67,307 million, up $5,156 million (+8.3%) versus the prior-year quarter, with diluted EPS of $4.50 versus $4.04 a year earlier. Gross margin on total revenue…
- 10-Q · June 5, 2025
- Costco reported third-quarter net sales of $61,965 million and total revenue of $63,205 million (amounts per filing in millions), driving net income of $1,903 million and diluted EPS of $4.28 for the 12 weeks ended May…
- 10-Q · December 19, 2024
- Costco reported a sequentially and year-over-year revenue and earnings beat for the 12 weeks ended November 24, 2024, with total revenue of $62,151 million and diluted EPS of $4.04. Operating income rose to $2,196…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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