Costco has accelerated its warehouse rollout, opening 28 new locations globally in fiscal 2025 and targeting at least 35 openings in fiscal 2026. New warehouses are ramping to full productivity in under six months—two months faster than the historical average—driven by standardized designs, modular fixtures and streamlined staffing models. In the past year, management repurposed three underperforming retail centers into fully operational warehouses, cutting build-out costs by 15% and shortening development timelines by up to nine months. This expansion strategy is projected to add 4 million new cardholders over the next two years and support a mid-teens lift in warehouse-level operating income by fiscal 2027.

Over the last 20 years, a $1,000 investment in Costco stock, reinvesting all dividends, would have grown to $27,600, outperforming a comparable investment in the broad market by more than 3.5 times. Even after a 6% decline in 2025, Costco’s compounded annual total return since fiscal 2006 stands at 18.2%, compared with 9.8% for the S&P 500. Consistent high-single-digit same-store sales growth—8.2% in the fiscal first quarter of 2026—coupled with an executive membership upgrade rate above 25% has underpinned record free cash flows of $7.4 billion in the first half of fiscal 2026.

Costco has quietly increased its branded credit card gas reward to 5% cash back at warehouse-site pumps, up from 4%, on the first $7,000 of annual spending (up to $350). All other gas purchases and EV charging still earn 4% cash back on the same cap, after which the rate reverts to 1%. This adjustment raises the maximum annual gas rebate by 25% and is expected to drive an incremental $120 million in interchange revenue, based on current member fueling patterns, while reinforcing warehouse traffic and executive member renewals.

Costco maintains a paid membership base exceeding 80 million households, with a renewal rate around 90% in the U.S. and Canada. Executive members—who pay an additional fee for enhanced cash back benefits—now represent 28% of the total base, up from 24% two years ago. Membership dues generated $4.8 billion in revenue through the first half of fiscal 2026, funding ongoing investments in automation, digital checkout and healthcare clinics within warehouses. Management forecasts membership income will grow at a mid-single-digit rate annually, providing a stable earnings floor even during periods of supply-chain inflation or consumer spending moderation.