Costco Wholesale Corporation (COST.NE) reported QQ2 2025 revenue of $63.72 billion, up 8.9% year over year, with a gross profit of $9.614 billion and a gross margin of approximately 15.09%. Operating income reached $2.316 billion (operating margin ~3.63%), while net income was $1.788 billion with diluted EPS of $4.02-$4.03. The quarter produced free cash flow of about $1.611 billion, supporting a strong liquidity position (cash and cash equivalents of $12.356 billion; net debt about -$4.317 billion) and ongoing capital discipline (capex of $1.137 billion; buybacks of roughly $205 million). These results underscore Costco’s durable member-based model, scale advantages, and efficient working capital management, even as the business navigates a competitive and inflationary retail backdrop.
Key Performance Indicators
Revenue
Increasing
63.72B
QoQ: 2.53% | YoY: 8.90%
Gross Profit
Increasing
9.61B
15.09% margin
QoQ: 19.55% | YoY: 30.95%
Operating Income
Increasing
2.32B
QoQ: 5.46% | YoY: 5.42%
Net Income
Increasing
1.79B
QoQ: -0.56% | YoY: 6.37%
EPS
Increasing
4.03
QoQ: -0.49% | YoY: 6.33%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $63.72B (+8.9% YoY, +2.53% QoQ); Gross Profit: $9.614B (margin ~15.09%, YoY +30.95%, QoQ +19.55%); Operating Income: $2.316B (margin ~3.63%, YoY +5.42%, QoQ +5.46%); Net Income: $1.788B (margin ~2.81%, YoY +6.37%, QoQ -0.56%); EPS: $4.03 (YoY +6.33%, QoQ -0.49%); Cash Flow: Operating CF $2.748B; Free Cash Flow $1.611B; Capex $1.137B; Free Cash Flow Yield and FCF per share reflect disciplined capital deployment; Balance Sheet: Total assets $73.22B; Total liabilities $47.65B; Equity $25.58B; Current ratio ~0.997; Quick ratio ~0.490; Net debt negative ~$4.32B; Cash position robust at ~$12.36B; Inventory $18.75B; AP $18.61B; Debt: LT debt $8.04B; ROIC/ROE remain constructive. Investment metrics show premium multiples (P/B ~18.61, P/E ~66.5, FCF/EV ~0.58, EBITDA/Interest favorable).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
63.72B
8.90%
2.53%
Gross Profit
9.61B
30.95%
19.55%
Operating Income
2.32B
5.42%
5.46%
Net Income
1.79B
6.37%
-0.56%
EPS
4.03
6.33%
-0.49%
Key Financial Ratios
Gross Profit Margin
Weak
15.10%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
3.63%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
2.81%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
2.44%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
6.99%
Return on equity is acceptable but below top-tier companies
Current Ratio
Concern
1.00
Current ratio below safe levels, potential liquidity risk
Debt to Equity
Moderate
0.31
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
High Growth
66.54x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
High Premium
18.61x
Very high premium suggests asset-light business model or lofty expectations
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