Costco Whsl Corp New — Financial Results
Net Sales Grew 8%, Driven by Members Shopping More Often
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Net Sales | $269,912M | $249,625M | $237,710M |
| Comparable Sales Growth | 6% | 5% | 3% |
| E-commerce Comparable Growth | 16% | 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
| Metric | 2025 | 2024 |
|---|---|---|
| Membership Fee Revenue | $5,323M | $4,828M |
| U.S. & Canada Renewal Rate | 92.3% | — |
| Worldwide Renewal Rate | 89.8% | — |
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
| Metric | 2025 | 2024 |
|---|---|---|
| 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
| Metric | 2025 | 2024 |
|---|---|---|
| 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.