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    How Sports Research’s Costco Expansion and Capital Returns At Costco Wholesale (COST) Has Changed Its Investment Story

    Simply Wall St·12/25/2025 00:54:33
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    • In December 2025, Sports Research® announced a major expansion of its premium supplement lineup at Costco®, now supplying 10 products nationwide, while Costco reported first-quarter 2026 revenue of US$67.31 billion and net income of US$2.00 billion, and completed a US$2.25 billion share repurchase program initiated in January 2023.
    • The deeper Sports Research presence in Costco’s tightly curated wellness aisles, combined with Costco’s solid earnings and disciplined capital returns, highlights how third-party brands and membership-driven profitability can reinforce the retailer’s category strength and customer loyalty.
    • Next, we’ll examine how Northcoast’s upgrade and Costco’s resilient membership economics may reshape the company’s investment narrative for long-term holders.

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    Costco Wholesale Investment Narrative Recap

    To own Costco, you have to believe its membership engine, disciplined merchandising and expanding warehouse footprint will keep driving steady cash generation despite cost and competitive pressures. The Sports Research rollout and solid Q1 2026 results modestly reinforce near term category strength, but do not materially change what looks like the key near term swing factor: how membership fee income holds up after tighter enforcement and higher prices, versus the biggest risk around cost inflation and margin pressure from labor, tariffs and supply chain.

    The most relevant recent announcement here is Costco’s first quarter 2026 report, with revenue of US$67.31 billion and net income of US$2.00 billion, alongside the completion of a US$2.25 billion buyback program. Those results suggest that, for now, membership centric profitability and the balance between higher operating costs and pricing power are holding together, which matters more for the stock’s catalyst path than any single brand partnership, even in fast growing wellness categories.

    But while membership economics look resilient today, investors should be aware that rising labor and tariff related costs could eventually test Costco’s ability to...

    Read the full narrative on Costco Wholesale (it's free!)

    Costco Wholesale's narrative projects $329.0 billion revenue and $10.4 billion earnings by 2028. This requires 7.0% yearly revenue growth and about a $2.6 billion earnings increase from $7.8 billion today.

    Uncover how Costco Wholesale's forecasts yield a $1056 fair value, a 21% upside to its current price.

    Exploring Other Perspectives

    COST 1-Year Stock Price Chart
    COST 1-Year Stock Price Chart

    Twenty nine Simply Wall St Community fair value views on Costco span roughly US$581 to US$1,205 per share, underscoring how far apart individual investors can be. When you set those side by side with the current focus on membership fee growth as a key earnings driver, it becomes clear why you may want to compare several independent takes before deciding how Costco fits in your portfolio.

    Explore 29 other fair value estimates on Costco Wholesale - why the stock might be worth as much as 38% more than the current price!

    Build Your Own Costco Wholesale Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.