Costco Wholesale Corporation has reported solid first-quarter results for fiscal year 2026, with higher sales, stronger profits and continued momentum across its international and digital operations.
For the 12 weeks ended 23 November 2025, Costco’s net sales rose 8.2% to $65.98 billion, up from $60.99 billion a year earlier. Total revenue, including membership fees, reached $67.31 billion.
Comparable sales grew 6.4% across the total business, reflecting consistent demand in all major regions. In the US, comparable sales increased 5.9%, while Canada delivered growth of 6.5%. Other international markets posted the strongest performance, with comparable sales up 8.8%. On an adjusted basis, excluding fuel and currency impacts, growth remained firm across all regions.
Digitally enabled sales rose 20.5% year on year, highlighting the continued role of online and digitally supported purchasing in Costco’s growth mix. This performance aligns with wider shifts in retail technology in supermarkets, where digital tools are increasingly driving both volume and efficiency.
Profitability also improved during the quarter. Net income rose to $2.0 billion, compared with $1.8 billion last year. Diluted earnings per share increased to $4.50, supported by higher operating income and stable cost control. Operating income reached $2.46 billion, up from $2.20 billion in the prior-year period.
Costco ended the quarter with 923 warehouses worldwide, reinforcing its position as one of the largest and most geographically diverse grocery-led retailers. The estate includes 633 locations in the United States and Puerto Rico, 114 in Canada, and a growing presence across Europe and Asia-Pacific, including the UK, Japan, Korea, Australia, China and Spain. The group also continues to operate e-commerce platforms across multiple markets.
Cash generation remained strong, with operating cash flow of $4.69 billion during the quarter. Costco continued to invest heavily in property and equipment, reflecting ongoing warehouse development and operational upgrades, while maintaining dividends and share repurchases.
Why It Matters
Costco’s Q1 performance sends a clear signal to suppliers and buyers across the grocery and FMCG supply chain. Consistent comparable sales growth, combined with strong cash flow, reinforces Costco’s scale advantage and purchasing power.
The continued acceleration of digitally enabled sales shows that even warehouse-led formats are benefiting from investments in digital infrastructure. This trend has implications for product packaging, fulfilment formats and supplier readiness as digital demand grows alongside in-store volume.
For manufacturers and exporters, Costco’s expanding international footprint and steady earnings underline the importance of aligning with large-format, high-volume retailers. Strong financial results also suggest Costco remains well positioned in negotiations with supermarket suppliers in 2025, particularly as retailers balance cost pressures with long-term volume commitments.
Overall, the first-quarter results point to a stable start to fiscal 2026, with Costco maintaining growth across regions while continuing to invest in its global warehouse network and digital capabilities.
Editor’s note: This article is based on Costco Wholesale Corporation’s official Q1 FY2026 operating results announcement, covering the 12 weeks ended 23 November 2025. Financial figures and performance data are taken directly from the company’s published earnings release.
