#Costco Reports Strong Fiscal Q2 Sales
Costco Wholesale Corporation (Nasdaq: COST) reported net sales of $68.24 billion for its fiscal second quarter ended February 15, 2026, an increase of 9.1% from $62.53 billion in the same period a year earlier, according to a news release issued March 5, 2026.
Diluted earnings per share for the quarter were $4.58, compared with $4.02 in the prior-year period. Net income rose to $2.035 billion from $1.788 billion. For the first 24 weeks of the fiscal year, net sales reached $134.22 billion, up 8.7%, with net income of $4.04 billion, or $9.08 per diluted share.
#Comparable Sales and Digital Performance
Total company comparable sales increased 7.4% for the quarter on an unadjusted basis, and 6.7% when excluding the effects of gasoline price changes and foreign exchange movements. U.S. comparable sales rose 5.9% unadjusted; Canada posted 10.1%; and other international markets recorded 13.0%, though the company noted that the Lunar New Year calendar shift — occurring 19 days later this year — positively affected February international and total company results by approximately 4.0% and 0.5%, respectively.
Digitally-enabled comparable sales increased 22.6% for the quarter on an unadjusted basis, continuing a trend of above-average e-commerce growth relative to in-store performance. The company operates e-commerce platforms in the U.S., Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan, and Australia.
For the four-week reporting month of February ended March 1, 2026, net sales were $21.69 billion, up 9.5% from $19.81 billion in the same period last year. Year-to-date net sales through 26 weeks reached $144.85 billion, an increase of 8.6%.
#Membership and Operating Structure
Membership fee revenue for the quarter was $1.355 billion, up from $1.193 billion in the comparable prior-year period, contributing to total revenue of $69.597 billion. Operating income for the second quarter was $2.606 billion, against $2.316 billion a year earlier.
Costco operated 924 warehouses globally as of the report date, including 634 in the United States and Puerto Rico, 114 in Canada, 42 in Mexico, 37 in Japan, 29 in the United Kingdom, 20 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, three in France, two in Sweden, and one each in Iceland and New Zealand.
#Industry Context
Warehouse club and membership-based retail formats have drawn continued consumer interest during periods of broader cost-consciousness. Costco competes in a segment that includes BJ's Wholesale Club and Sam's Club, a division of Walmart. The membership model provides a recurring revenue component that is structurally distinct from traditional retail, though it also requires the company to maintain renewal rates and perceived value to sustain that revenue stream.