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Costco Whsl Corp New — Financial Results

AI Overview

Net Sales Grew 8%, Driven by Members Shopping More Often

Metric202520242023
Net Sales$269,912M$249,625M$237,710M
Comparable Sales Growth6%5%3%
E-commerce Comparable Growth16%16%-6%

Total net sales rose $20.3 billion to nearly $270 billion. The primary engine was a 5% increase in shopping frequency — existing members simply visiting more often — with average spend per trip up about 1%. E-commerce grew 16% for the second straight year, signaling a meaningful and consistent online shift.

Membership Fees Up 10%, with Near-Record Renewal Rates

Metric20252024
Membership Fee Revenue$5,323M$4,828M
U.S. & Canada Renewal Rate92.3%
Worldwide Renewal Rate89.8%

Membership fee revenue — essentially pure profit — climbed $495 million. About 40% of that growth came from the fee increase that took effect September 2024 (the first in several years), with the rest from new members joining. A 92.3% renewal rate in the U.S. and Canada means members are overwhelmingly sticking around, which is a strong signal of customer loyalty.

Profitability Improved: Net Income Up 10% to $8.1 Billion

Metric20252024
Net Income$8,099M$7,367M
Diluted EPS$18.21$16.56
Gross Margin %11.12%10.92%

Net income grew 10%, with earnings per share (EPS) rising from $16.56 to $18.21. Gross margin (the percentage of revenue left after paying for merchandise) ticked up 20 basis points, helped largely by fresh foods and the co-branded credit card program. Currency headwinds shaved $97 million off net income — without that drag, growth would have looked even better.

Capital Spending Is Accelerating, With More Warehouses Planned

Costco spent $5.5 billion on capital expenditures (physical investment in buildings, equipment, and systems) in 2025, and plans to increase that to $6.0–$6.5 billion in 2026. The company opened 27 warehouses this year and plans up to 35 next year. This stepped-up pace of expansion — funded entirely from operating cash flow — points to confident reinvestment in growth rather than reliance on debt.

Operating Cash Flow Hit a Record $13.3 Billion

Metric20252024
Cash from Operations$13,335M$11,339M
Cash & Short-Term Investments$15,284M$11,144M

Cash generated from running the business jumped 18% year over year, and the company ended the year sitting on $15.3 billion in cash and short-term investments. This strong liquidity position underpins both the expansion plans and shareholder returns, without needing to take on new long-term debt — in fact, the company repaid $103 million in debt this year.

Dividend Raised 12%; Share Buybacks Continue

The board approved a 12% increase in the quarterly dividend in April 2025, lifting it from $1.16 to $1.30 per share. The company also repurchased $903 million worth of stock during the year at an average price of $957.66 per share, with roughly $2 billion remaining under the current buyback authorization through January 2027.