Earnings Outlook For Costco Wholesale
Costco Wholesale (NASDAQ:COST) is set to give its latest quarterly earnings report on Thursday, 2025-12-11. Here's what investors need to know before the announcement.
Analysts estimate that Costco Wholesale will report an earnings per share (EPS) of $4.27.
Investors in Costco Wholesale are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Past Earnings Performance
The company's EPS beat by $0.06 in the last quarter, leading to a 2.9% drop in the share price on the following day.
Here's a look at Costco Wholesale's past performance and the resulting price change:
| Quarter | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 |
|---|---|---|---|---|
| EPS Estimate | 5.81 | 4.23 | 4.10 | 3.79 |
| EPS Actual | 5.87 | 4.28 | 4.02 | 3.82 |
| Price Change % | -3.00 | 3.00 | -6.00 | 0.00 |
Stock Performance
Shares of Costco Wholesale were trading at $888.44 as of December 09. Over the last 52-week period, shares are down 10.11%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Analysts' Take on Costco Wholesale
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Costco Wholesale.
Analysts have given Costco Wholesale a total of 19 ratings, with the consensus rating being Outperform. The average one-year price target is $1068.84, indicating a potential 20.31% upside.
Peer Ratings Comparison
In this analysis, we delve into the analyst ratings and average 1-year price targets of Target, Dollar General and Dollar Tree, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Target, with an average 1-year price target of $95.52, suggesting a potential 89.25% downside.
- Analysts currently favor an Neutral trajectory for Dollar General, with an average 1-year price target of $126.29, suggesting a potential 85.79% downside.
- Analysts currently favor an Neutral trajectory for Dollar Tree, with an average 1-year price target of $114.71, suggesting a potential 87.09% downside.
Peers Comparative Analysis Summary
The peer analysis summary outlines pivotal metrics for Target, Dollar General and Dollar Tree, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Costco Wholesale | Outperform | 8.10% | $11.12B | 9.27% |
| Target | Neutral | -1.55% | $7.13B | 4.46% |
| Dollar General | Neutral | 4.58% | $3.18B | 3.49% |
| Dollar Tree | Neutral | 9.44% | $1.71B | 6.92% |
Key Takeaway:
Costco Wholesale ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.
Get to Know Costco Wholesale Better
Founded in 1983, Costco Wholesale now operates a global chain of membership-based warehouse clubs, delivering high-quality goods and services at consistently low prices. As of its most recent fiscal year, Costco operated approximately 910 warehouses, serving more than 80 million members across its three geographic segments: Costco US (approximately 73% of total revenue), Costco Canada (13%), and Costco International (14%).Costco's core value proposition—quality products at unbeatable prices—has yielded consistently strong member renewal rates (93% in the US and Canada and nearly 90% internationally). About 55% of Costco's fiscal 2025 revenue came from its grocery offerings, and another 25% from general merchandise.
Costco Wholesale: Delving into Financials
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: Costco Wholesale displayed positive results in 3 months. As of 31 August, 2025, the company achieved a solid revenue growth rate of approximately 8.1%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Staples sector.
Net Margin: Costco Wholesale's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 3.03%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): Costco Wholesale's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 9.27%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.42%, the company showcases effective utilization of assets.
Debt Management: Costco Wholesale's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.28.
To track all earnings releases for Costco Wholesale visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.