Costco reported fiscal 2026 first-quarter earnings on December 11, 2025, with EPS of $4.50 beating consensus by $0.19 and revenue of $67.31 billion ahead of expectations by $0.17 billion. Despite this beat, shares have declined 2.12% over the past month and 4.77% the month prior, leaving the stock down 18.68% since its one-year high in mid-February. The company continues to reward shareholders with a quarterly dividend of $1.29 per share, representing a yield of 0.59%.

Global membership renewals remain at a robust 90%, underpinning the company’s loyalty model. Total paid members now approach 145 million, including 39.7 million executive members, and membership fee income rose 14% year-over-year to $1.33 billion in the quarter. Store count increased by 23 net locations in fiscal 2023 and 31 in fiscal 2024, bringing the total to 923 worldwide—633 in the U.S.—with plans for continued expansion into underpenetrated markets.

E-commerce sales grew 15% year-over-year in the most recent quarter and digitally enabled comparable sales surged 20.5%, highlighting the success of the online platform. Management has signaled further investment in artificial intelligence to optimize supply chains and personalize shopping experiences. Meanwhile, the private Kirkland brand continues to gain market share, providing additional margin support as new warehouses open to capture bulk-buying demand.

At current multiples above 50 times trailing earnings, valuation remains a focal point for investors evaluating future returns. Consensus targets from 23 analysts suggest upside in the mid-teens percentage range over the next 12 months based on projected EPS of $17.80 and a forward multiple near 51. Longer‐term projections to 2030 assume continued store growth at a 3% compound annual rate, rising international contributions and AI-driven efficiencies that could lead to EPS of approximately $27.70 and improved leverage to support further margin expansion.