Costco Q3 EPS $4.90, Comparable Sales Up 6.8%, Price Targets Raised
COST•Costco’s third-quarter revenue reached $69.15 billion, slightly below analysts’ $69.2 billion estimate, while EPS matched expectations at $4.90. BofA, Truist and Roth lifted price targets to $1,200, $1,011 and $781 respectively after Costco delivered 6.8% U.S. comparable sales growth and record gas station volumes.
1. Third-Quarter Financial Results
Costco’s third-quarter revenue reached $69.15 billion, narrowly below the $69.2 billion estimate, while EPS of $4.90 met expectations. U.S. comparable sales excluding gasoline rose 6.8%, and gas stations achieved all-time record fuel volumes as members took advantage of lower pump prices.
2. Membership Growth Trends
Membership renewal rates stabilized at 89.7% globally and 92.2% in the U.S./Canada, but new member additions of just over 800,000 fell short of the 1.1 million long-term quarterly average, highlighting a deceleration in customer base expansion.
3. Analyst Price Target Adjustments
Following the results, BofA raised its price target to $1,200 and boosted its fiscal 2027 EPS forecast by $0.10, maintaining a Buy rating. Truist lifted its target to $1,011 with a Hold rating, while Roth increased its target to $781 but kept a Sell stance.
