COST · Q3 2026 Earnings

Neutral

Costco

Reported May 28, 2026

30-second summary

30-second take: Costco's Q3 FY2026 revenue of $69.15B (+11.6% YoY) missed consensus of $69.64B by 0.7%, while non-GAAP EPS of $4.93 narrowly beat the $4.92 estimate. Reported comps of +9.8% (adjusted +6.6%) and digitally-enabled comps of +21.5% confirm the underlying engine is intact, with Other International accelerating to +11.2% and U.S. holding +9.4%. With no transcript and no quantitative forward guide issued, the print is operationally clean but the qualitative read on tariffs, renewal rate, and the FY26 opening cadence is unavailable this quarter.

Headline numbers

EPS

Q3 FY2026

$4.93

+0.2% vs est.

Revenue

Q3 FY2026

$69.15B

+11.6% YoY

-0.7% vs est.

Gross margin

Q3 FY2026

11.0%

Operating margin

Q3 FY2026

4.1%

Key financials

Q3 FY2026

Metric	Q3 FY2026	Q3 FY2025	YoY	Q2 FY2026	QoQ
Revenue	$69.15B	$61.96B	+11.6%	$68.24B	+1.3%
EPS	$4.93	$4.28	+15.2%	$4.58	+7.6%
Gross margin	11.0%	11.2%	-23bps	11.1%	-4bps
Operating margin	4.1%	4.1%	-2bps	3.8%	+25bps

Guidance

No forward guidance issued this quarter; unable to assess changes to Q4 FY2026 or FY2026 outlook.

Platform metrics

Q3 FY2026

Segment	Q3 FY2026	Q3 FY2025	YoY
Comparable Sales (Total Company)	9.8%	—	—
Comparable Sales Adjusted (Total Company)	6.6%	—	—
Membership Fees Revenue	$1,373 million	—	—
Warehouse Count	931	—	—

Profitability

Q3 FY2026

Segment	Q3 FY2026	Q3 FY2025	YoY
Operating Margin	4.07%	—	—
Net Income Margin	3.11%	—	—

Management tone

No transcript was available for this quarter, so tone analysis against prior quarters is not possible. The Q1 → Q2 arc (technology as operating model → tariffs reframed as offensive positioning) cannot be extended off the press release alone. Cross-quarter tone work resumes when transcript coverage is restored.

Answers to last quarter's watch list

Withdrawal of the 5-relocation disclosure — trim to 28 or folded into the count? — The press release adds 7 net warehouses in the quarter (924 → 931) but does not restate the FY26 net new opening guide or address relocations. Without transcript, the disclosure question remains open.

Continue monitoring

U.S. adjusted comp — hold at +5.9% for a third straight quarter? — The press release discloses U.S. comp growth at +9.4% on a reported basis and +6.8% on an adjusted basis. Total-company adjusted comp of +6.6% is down 10bps from Q2's +6.7% adjusted — effectively flat. The U.S. adjusted figure has accelerated from the +5.9% Q2 print, but a fuller read on traffic vs. ticket requires the call.

Continue monitoring

Other International comp durability — Reported growth of +11.2% vs Q2's +13.0% adjusted print. Modest deceleration but still double-digit; the Q2 spike did not fully revert.

Resolved positively

Digitally-enabled comp above 20%? — Came in at +21.5%, holding north of 20% for the fourth straight quarter. The same-day/services overlay has not lapped.

Resolved positively

Worldwide renewal rate stabilization vs Q2's flat 89.7% — Renewal rate not disclosed in the press release; typically a transcript-only metric for Costco.

Not resolved

Tariff refund (IEPA) timing and magnitude — No disclosure in the press release.

Not resolved

Core-on-core margin trajectory — Reported gross margin of 11.04% is down ~21bps YoY (Q3 FY25 was 11.25%) and effectively flat QoQ. The ex-gas and core-on-core breakouts that would isolate the underlying merchandising margin are transcript-only.

Not resolved

What to watch into next quarter

Whether the FY26 net new opening guide (28) is reaffirmed, trimmed, or quietly restated in the Q4 print — two quarters of silence on relocations and now a quarter with no operating commentary at all means the Q4 disclosure carries unusual weight

U.S. adjusted comp — the +6.8% adjusted print is an acceleration from the +5.9% Q2 figure; watch whether the Q4 reading confirms a sustained step-up or reverts

Gross margin YoY trajectory — Q3 gross margin of 11.04% is ~-21bps vs Q3 FY25's 11.25%; watch whether Q4 reverses or extends the YoY compression, and what the core-on-core read is once disclosed

Operating margin sustainability at the 4%+ level — Q3's 4.07% (on net sales) is essentially flat YoY but the strongest QoQ print of the year; watch whether SG&A leverage holds in Q4 or whether wage and healthcare costs reassert

Tariff refund (IEPA) and any FY27 capital plan preview — Q4 is the typical window for forward-year CapEx disclosure; the magnitude relative to the FY26 ~$6.5B baseline calibrates the opening cadence

Sources

Costco Q3 FY2026 earnings press release (Form 8-K, filed May 28, 2026) — https://www.sec.gov/Archives/edgar/data/909832/000090983226000046/costex9918-k52826.htm
Costco Q2 FY2026 earnings press release and prior Tapebrief brief — for prior-quarter baseline and watch-list resolution
Tradefeeds consensus estimates as of May 28, 2026

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