Costco Wholesale (COST.NE) Q1 2026 Earnings Report

Costco delivered a solid QQ1 2026 with healthy top-line growth and continued operating efficiency. Revenue stood at approximately 67.31 billion, up 8.30% year over year and 6.49% quarter over quarter, supported by a broad membership base and ongoing price leadership. Despite a modest sequential expansion in operating income, the company generated 2.46 billion of operating profit and 2.00 billion of net income, translating to margins around the mid-3% range and a net margin near 3%. Free cash flow reached about 3.16 billion, underscoring Costco’s ability to convert earnings into discretionary cash while maintaining a strong liquidity position.

Costco’s balance sheet remains exceptionally strong, with cash and cash equivalents of 16.22 billion and net cash position of roughly 13.78 billion, alongside a total assets base of 82.8 billion and minimal leverage. Capital allocation favored shareholder value through modest share repurchases (210 million) and dividends (~577 million), while capital expenditures totaled about 1.53 billion, sustaining growth initiatives and store/network investments. The combination of durable cash flow, disciplined spend, and a defensible member-driven model supports an constructive long-term investment thesis, though investors should monitor membership trends, vendor costs, international currency effects, and competitive dynamics in the discount retail space.

Management commentary, where available, emphasized ongoing emphasis on price competitiveness, member value, and international expansion as key drivers of durable demand. The QQ1 2026 results reinforce Costco’s status as a high-quality cash generator with a scalable model, capable of withstanding macro volatility while continuing to reinvest and return capital to shareholders.