Costco Wholesale reported quarterly revenue of $67.31 billion, representing an 8.3% increase from the same period last year, and delivered earnings per share of $4.34, surpassing consensus estimates by $0.07. The company attributed this growth to a 6.5% rise in comparable sales, driven by strength in grocery and fresh food categories as well as a 12% uptick in online sales. Membership fee income reached $1.7 billion, up 7% year-over-year, reflecting net new household additions of 1.2 million and a renewal rate of 91.5% in the North American segment.

Costco declared a quarterly dividend of $1.30 per share, amounting to an annualized payout of $5.20 and a payout ratio of 27.85%. This marks the 20th consecutive year of dividend increases, underscoring management’s commitment to returning cash to shareholders. Free cash flow totaled $4.5 billion for the quarter, enabling continued reinvestment in warehouse expansion—plans include opening 18 new warehouses globally this fiscal year—and share repurchases of $1.2 billion year-to-date.

During the third quarter, Savant Capital LLC reduced its position by 12.6%, selling 2,478 shares and holding 17,183 shares valued at $15.9 million. Conversely, Soundwatch Capital LLC increased its stake by 635.7% to 2,553 shares, and several other smaller funds initiated or boosted positions. According to the latest MarketBeat survey, 21 analysts rate the stock a Buy, 12 a Hold and one a Sell, resulting in a consensus Moderate Buy rating. The average price objective stands at $998.50, reflecting expectations for mid-single-digit sales growth and stable margin improvement over the next 12 months.