Costco Reports Strong Q3 Earnings
Costco Wholesale (NASDAQ: COST) announced its fiscal 2026 third-quarter results on May 28, revealing an 11.6% year-over-year increase in total revenue to $70.5 billion. Diluted earnings per share grew by 15.2%, driven by a robust 9.8% rise in same-store sales, which reached 6.6% when excluding gas prices and foreign exchange effects. The quarter ended on May 10.
Despite ongoing economic challenges, including a 3.8% inflation rate in April, Costco’s business model has shown resilience. The company’s same-store sales growth was bolstered by strong gas sales, increased transaction sizes, and higher customer traffic.
Costco’s stock is currently valued at a price-to-earnings (P/E) ratio of 48, reflecting market confidence in its stability despite a lack of hyper-growth. The stock’s total return over the past decade stands at 634% as of June 2.
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