Costco's quarterly profit exceeds expectations, driven by growth in merchandise sales and membership fees | Earnings Report Insights

Costco announced its operating performance for the second fiscal quarter of 2026 and the first half of the fiscal year, ending on February 15 this year, after the market closed on Thursday. The growth in merchandise sales and an increase in membership fee income jointly drove the performance growth, stimulating the company's stock price to rise 2.46% in after-hours trading.

Here are the key points from Costco's financial report:

Key Financial Data:

Net Sales: Net sales for the second fiscal quarter increased by 9.1% year-on-year, reaching $68.24 billion, compared to $62.53 billion in the same period last year. Net sales for the first 24 weeks of fiscal 2026 increased by 8.7%, reaching $134.22 billion, compared to $123.52 billion in the same period last year.

Comparable Sales: Comparable sales for the second fiscal quarter increased by 7.4% year-on-year, with an adjusted growth of 6.7%. For the first 24 weeks, the increase was 6.9%, with an adjusted growth of 6.5%.

Digital Channel Sales: Comparable sales for digital channels in the second fiscal quarter increased by 22.6%, with an adjusted growth of 21.7%; for the first 24 weeks, the increase was 6.9%, with an adjusted growth of 6.5%.

Net Profit: Net profit for the second fiscal quarter was $2.035 billion, with diluted earnings per share of $4.58; net profit for the first 24 weeks of fiscal 2026 was $4.04 billion, with diluted earnings per share of $9.08.

Segment Market Data:

U.S. Market: Comparable sales in the second fiscal quarter increased by 5.9%, with an adjusted growth of 6.4%; for the first 24 weeks, the increase was 5.9%, with an adjusted growth of 6.1%.

Canadian Market: Comparable sales in the second fiscal quarter increased by 10.1%, with an adjusted growth of 7.6%; for the first 24 weeks, the increase was 8.3%, with an adjusted growth of 8.3%.

Other International Markets: Comparable sales in the second fiscal quarter increased by 13.0%, with an adjusted growth of 7.1%. For the first 24 weeks, the increase was 11.0%, with an adjusted growth of 7.0%.

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