Costco Wholesale Corporation (COST)
Costco is a massive membership-only warehouse club that sells bulk goods at low prices to millions of loyal shoppers.
Is Costco Wholesale Corporation a good stock for a UK beginner?
The honest version: Costco is a massive membership-only warehouse club that sells bulk goods at low prices to millions of loyal shoppers.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Dominance in the e-commerce space alongside physical stores.
A major shift in how people prefer to shop for bulk goods.
What does Costco Wholesale Corporation do?
Costco operates a simple business model: you pay an annual membership fee to shop in their giant warehouses, where they keep prices low by selling items in bulk. They make most of their actual profit from those membership fees rather than the mark-up on the goods themselves. Keep an eye on whether they can keep drawing in new members and persuading existing ones to renew their subscriptions year after year.
On our factor screen it looks strongest on growth and income, and weakest on value.
- ✓Pays a dividend - about 0.6% a year
- ✓Growing - revenue up about 22% over the year
- !High P/E of 48 - big growth is already priced in
- ✓Strong return on shareholder money (ROE 29%)
- Growth screens high (75/100)
- Extremely loyal customer base with high renewal rates
- Simple and proven business model
- Strong ability to negotiate low prices from suppliers
- Value screens low (21/100)
- Economic downturns could lead to fewer membership renewals
- Rising labour and logistics costs
- Increased competition from online-only retailers
What do Costco Wholesale Corporation's numbers mean?
How much money does Costco Wholesale Corporation make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Costco Wholesale Corporation pay a dividend?
Yes - Costco Wholesale Corporation currently pays a dividend of about 0.6% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
When does Costco Wholesale Corporation report earnings, and how did recent quarters go?
Costco Wholesale Corporation is next scheduled to report on about 2026-09-24 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-05-28 | $4.97 | $4.93 | In line |
| 2026-03-05 | $4.55 | $4.58 | In line |
| 2025-12-11 | $4.27 | $4.50 | Beat +5% |
| 2025-09-25 | $5.80 | $5.87 | Beat +1% |
| 2025-05-29 | $4.23 | $4.28 | Beat +1% |
| 2025-03-06 | $4.10 | $4.02 | Missed -2% |
Across the last 6 quarters here, Costco Wholesale Corporation came in ahead of what analysts expected 3 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
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PepsiCo, Inc.What are the scenarios for Costco Wholesale Corporation?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Costco Wholesale Corporation?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Extremely loyal customer base with high renewal rates
- Simple and proven business model
- Strong ability to negotiate low prices from suppliers
- Very thin profit margins leave little room for error
- High valuation compared to typical retail businesses
- Limited international footprint compared to some competitors
- Economic downturns could lead to fewer membership renewals
- Rising labour and logistics costs
- Increased competition from online-only retailers
The write-up's own warning lights — if these start happening, the case above changes.
- A sustained decline in membership renewal rates
- A significant change in the company's pricing strategy
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.