Costco Posts $2.04B Net Income in Q2 FY2026 on 9.1% Revenue Gain
The warehouse retailer reported net income of $2.04 billion for the quarter ending February 15, up 13.8% from $1.79 billion a year earlier, while total revenue climbed to $69.60 billion.
Costco Wholesale Corp (NASDAQ: COST), a membership-based warehouse club retailer, reported net income of $2.04 billion for the quarter ending February 15, 2026, up 13.8% from $1.79 billion in the same quarter a year earlier. Diluted earnings per share rose to $4.58 from $4.02. Read more earnings reports.
Total revenue for the quarter reached $69.60 billion, a 9.1% increase from $63.72 billion in the prior-year period. Net sales climbed to $68.24 billion from $62.53 billion, while membership fees grew to $1.36 billion from $1.19 billion, a 13.6% gain.
For the six months ending February 15, 2026, Costco posted net income of $4.04 billion, up 12.5% from $3.59 billion a year earlier. Total revenue for the half reached $136.90 billion compared to $125.87 billion in the prior-year period, an 8.8% increase.
Operating income for the quarter was $2.61 billion, up from $2.32 billion a year ago, a 12.5% rise. Operating margin improved as operating income grew faster than revenue.
Cost of goods sold for the quarter totaled $60.72 billion, up from $55.74 billion in the prior year. Selling, general, and administrative expenses rose to $6.27 billion from $5.66 billion, an increase of 10.8%.
The company generated $7.68 billion in cash from operations during the six-month period, a 27.9% increase from $6.01 billion in the prior year. Cash used in investing activities totaled $2.57 billion, while cash used in financing activities was $1.90 billion.
| Metric | Q2 FY2026 | Q2 FY2025 | Change |
|---|---|---|---|
| Total Revenue | $69.60 billion | $63.72 billion | +9.1% |
| Net Sales | $68.24 billion | $62.53 billion | +9.1% |
| Membership Fees | $1.36 billion | $1.19 billion | +13.6% |
| Operating Income | $2.61 billion | $2.32 billion | +12.5% |
| Net Income | $2.04 billion | $1.79 billion | +13.8% |
| EPS (Diluted) | $4.58 | $4.02 | +13.9% |
Total assets stood at $83.64 billion as of February 15, 2026, up from $77.10 billion at the end of the previous fiscal year on August 31, 2025. Cash and cash equivalents increased to $17.38 billion from $14.16 billion.
Inventory rose to $18.99 billion from $18.12 billion at fiscal year-end. Accounts payable increased to $20.65 billion from $19.78 billion.
Stockholders' equity totaled $32.09 billion as of February 15, up from $29.16 billion at fiscal year-end. Long-term debt was relatively flat at $5.69 billion compared to $5.71 billion. The company had 443.7 million shares outstanding at quarter-end.