Costco Grew Sales 11.2% Last Quarter. Strip Out Gasoline and Tariff Refunds, and It Still Beat.
- For the 16 weeks ended August 30, 2026 (fiscal Q4), Costco's net sales rose 11.2% to $93.9 billion. Membership fees were $1.85 billion.
- EPS was $6.75, vs about $6.55 expected. That includes a one-time $0.15 benefit from IEEPA tariff refunds.
- US comparable sales: +10.7% reported, +7.2% excluding gasoline prices and currency. Total company: +9.4% reported, +6.7% adjusted.
- Digitally-enabled sales grew 19.5%. Canada comps were +5.0% (+4.6% adjusted).
- Fiscal 2026: net sales $297.2 billion (+10.1%), EPS $20.76. Costco runs 939 warehouses, including 115 in Canada.
The headline vs the real number
Costco reported its fiscal fourth quarter on September 24. The headline figures looked spectacular:
- Net sales: up 11.2% to $93.9 billion
- US comparable sales: up 10.7%
- Earnings per share: $6.75, vs about $6.55 expected
But two things were quietly boosting those numbers: expensive gasoline and one-time tariff refunds. Learning to spot them is one of the most useful skills in reading earnings.
Adjustment 1: gasoline
Costco sells a lot of gas. When pump prices jump, as they have in 2026 with oil near $100, gas station revenue rises even if members buy the same number of gallons. That inflates sales growth.
So Costco also reports comparable sales excluding gasoline prices and currency:
| Region | Reported comps | Excluding gas and FX |
|---|---|---|
| United States | +10.7% | +7.2% |
| Canada | +5.0% | +4.6% |
| Other international | +7.0% | +6.2% |
| Total company | +9.4% | +6.7% |
| Digitally-enabled | +19.5% | +19.8% |
The adjusted number, 6.7%, is the real measure of how much more members are buying. It still beat the roughly 6.4% analysts expected. For a company Costco's size, that's strong growth.
Adjustment 2: tariff refunds
Costco received refunds of tariffs it had paid under the International Emergency Economic Powers Act (IEEPA). The refunds added a non-recurring $0.15 per share to earnings. Costco said it reinvested part of the money in lower prices for members.
Take the $0.15 out and EPS was about $6.60. That still beat estimates, but by a nickel rather than 20 cents. Tariff refunds are showing up across retail and industrial earnings this season; see Tariff Refunds Are Boosting Earnings.
Why investors care about membership fees
Costco collected $1.85 billion in membership fees in the quarter and about $5.9 billion for the year. Those fees are almost pure profit.
That's Costco's business model: sell goods at very thin margins, earn steady profit from fees. It's why the stock usually trades at a premium to other retailers. Growth in members and renewals matters as much as sales.
What Costco says about the US shopper
- People are still spending. Adjusted US comps of 7.2% show solid demand, matching strong August retail sales data. See US Shoppers Spent 1.2% More in August.
- Value is winning. When prices are high, shoppers move to bulk and warehouse clubs. That helps Costco, Walmart and BJ's.
- Online keeps growing fast. Digital sales rose nearly 20%.
- Canada is slower. Adjusted Canadian comps of 4.6% trail the US, consistent with a weaker Canadian consumer and a trade dispute weighing on confidence.
The investor takeaway
Costco is a high-quality business, and the quarter confirmed it. But quality is usually priced in. The stock barely moved after the report, rising 0.3% at first and then slipping 0.2% in premarket trading on Friday. When a great company only meets high expectations, the stock often goes sideways.
Two habits to take from this quarter:
- Always look for the "adjusted" or "excluding" number in retail earnings. Gas, currency and one-time items can distort headlines.
- Separate one-time gains from repeatable ones. Tariff refunds won't happen again next year.
More on this in How to Read an Earnings Report.
The honest uncertainty
High gas prices help Costco's reported sales today but squeeze members' budgets. If oil falls on a US-Iran deal, reported sales growth will slow, even if underlying demand holds. Watch the adjusted comps each month; that's where the real signal is.
Frequently asked questions
How did Costco do in Q4 2026?
For the 16 weeks ended August 30, 2026, Costco's net sales rose 11.2% to $93.9 billion and earnings per share were $6.75, above estimates of about $6.55. Total comparable sales rose 9.4%, or 6.7% excluding gasoline prices and currency effects.
What are adjusted comparable sales?
Comparable sales measure growth at stores open at least a year. Costco also reports them excluding changes in gasoline prices and foreign exchange, because both can swing reported sales without reflecting how many goods members are buying. With gas up sharply in 2026, the adjusted figure is the better gauge of underlying demand.
What are the IEEPA tariff refunds in Costco's earnings?
Costco received refunds of tariffs it had paid under the International Emergency Economic Powers Act. The refunds added a one-time $0.15 per share to fiscal Q4 earnings, partly offset by Costco reinvesting some of the money in lower prices for members. Without it, EPS would have been about $6.60, still above estimates.
Why is Costco's membership fee income important?
Membership fees, $1.85 billion in fiscal Q4 and about $5.9 billion for the year, are nearly pure profit and very predictable. They let Costco sell goods at thin margins while still earning steady income, which is a big reason investors pay a premium for the stock.
Primary sources
Data & disclaimer: This article is for educational purposes only and is not financial or investment advice. Figures reflect data available as of Sep 26, 2026, and conditions change — always confirm current pricing, rates and rules with the provider before you act. Written by Elizabeta Dimoska. See our editorial standards and disclosure.
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