Costco Q3 EPS Beats by $0.01, Revenue Dips to $69.15 Billion
COST•Costco reported Q3 adjusted EPS of $4.93, beating estimates by $0.01 while revenue dipped 0.7% to $69.15 billion. US comparable sales excluding gasoline climbed 6.8%, membership income rose 7%, and the retailer plans tariff refunds in coming months.
1. Q3 Earnings Results
Costco posted adjusted Q3 EPS of $4.93, topping the $4.92 consensus by $0.01, while net income rose to $2.19 billion from $1.90 billion a year earlier, though revenue fell 0.7% year-over-year to $69.15 billion, missing the $69.64 billion forecast.
2. Sales and Membership Trends
US same-store sales excluding gasoline increased 6.8%, driven by strength in food and household categories, while membership fee income grew 7% year-over-year, reflecting stable renewal rates and the company’s pricing power.
3. Tariff Refund Plans and Outlook
The company plans to return a portion of tariff-related costs to members and expects to receive refunds in the coming months. It noted potential further inflation in certain non-food categories, supply chain operations remain steady, and geopolitical risks are being monitored.
4. Market Reaction and Commentary
Costco shares rose 0.13% in after-hours trading following the earnings release, with analysts noting strong fundamentals despite the slight revenue miss and highlighting stable membership and sales growth.
