Costco Wholesale (COST.BA) Q3 2025 Earnings Report

Costco’s QQ3 2025 results show a substantial year-over-year revenue decline alongside resilient profitability and strong cash generation. Revenue reached USD 63.205 billion for the quarter, down 20.69% year over year and down 0.81% quarter over quarter, reflecting macro headwinds and a normalization from elevated demand during the prior year. Despite top-line pressure, gross margin remained solid at 12.99%, with operating margin around 4.00% and net margin near 3.01%, underscoring Costco’s ability to preserve profitability through disciplined cost control and a favorable mix. Free cash flow was robust at USD 2.329 billion for the quarter, supported by USD 3.46 billion of operating cash flow and a strong balance sheet highlighted by net cash positioning and ample liquidity.