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Costco’s Q4 Earnings Reveal Resilient Growth Amid Expansion Strategy

September 25, 2025

Highlights

  • Net Income: $2.61 billion (+11% YoY)
  • Earnings per Diluted Share: $5.87 (+11% YoY)
  • Net Sales: $84.43 billion (+8% YoY)
  • Comparable Sales: 5.7% (6.4% adjusted for gas and FX)
  • E-commerce Sales: 13.6% growth
  • Membership Fee Income: $1.72 billion (+14% YoY)
  • Executive Membership Growth: 9.3% YoY
  • Total Paid Members: 81 million (+6.3% YoY)
  • Gross Margin: 11.13% (up 13 basis points YoY)

Costco Wholesale Corporation has once again demonstrated its operational prowess with a solid display on its fourth quarter earnings. The standout figures point to robust growth across multiple fronts, ensuring investors of the company’s steady expansion and consumer appeal.

Sales and Income Strongholds

The company’s net income surged to $2.61 billion, reflecting an impressive 11% increase year-over-year. Earnings per diluted share paralleled this growth, reaching $5.87, up from $5.29 in the prior year. Despite an environment marked by volatile gas prices and fluctuating foreign exchange rates, Costco's net sales hit $84.43 billion—a commendable 8% rise.

In analyzing comparable sales, the company reported a 5.7% growth, which adjusts to 6.4% when correcting for gas and currency effects. This foundational growth underscores the company's strategic pricing and value proposition prowess, critical in maintaining consumer loyalty and driving foot traffic.

E-commerce and Membership Resonance

Costco’s digital strategy is bearing fruit, as e-commerce saw a surge of 13.6%—a testament to the company's investment in enhancing the online shopping experience. This is bolstered by membership fee income climbing to $1.72 billion, up by 14%, driven by the robust growth of executive memberships which expanded by 9.3%. Total paid memberships also rose to 81 million, a 6.3% increase, showcasing strong consumer trust and business model resilience.

Margin and Strategic Tactics

Gross margins increased slightly to 11.13%, up by 13 basis points from last year, demonstrating effective cost management and supply chain efficiencies. These results illustrate Costco’s ability to absorb increased costs amidst a challenging retail environment while continuing to deliver value to its members.

Further granularity in the operational metrics reveals Costco’s strategic depth, leveraging supply chain improvements and an increased penetration of its private label Kirkland Signature to maintain margins while focusing on fresh food, nonfoods, and consistent promotional strategies.

With Costco's strategic warehouse expansions worldwide and a keen eye on member benefits, investors have multiple reasons to remain optimistic about the wholesaler's trajectory in the competitive retail landscape.