Costco’s QQ3 2025 results delivered solid top-line momentum and a modest step up in gross margins despite ongoing inflation dynamics and tariff headwinds. Revenue reached $63.2 billion, up 8% year over year, while net income of $1.90 billion and diluted EPS of $4.28–$4.29 reflected stronger sales and favorable mix, offset by a $130 million LIFO charge and a $35 million FX translation impact. U.S. comps accelerated 6.6% (7.9% ex gas deflation), with total company comps at 5.7% (8% adjusted). E-commerce remained a bright spot, with online comps at ~15% growth (roughly 15.7% adjusted). Management emphasized continued value leadership through price investments, operational efficiency, and a more localized sourcing strategy to mitigate tariff exposure. Importantly, Costco remains focused on expanding membership value via new warehouses, technology pilots, and elevated gas-hour availability, while also advancing private-label penetration (Kirkland Signature) and e-commerce capabilities (Affirm BNPL). Cost control efforts benefited gross margins, though inflation and LIFO dynamics remain meaningful near term. The company projects capex of a little over $5 billion for the year and plans to add roughly 27 new warehouses in fiscal 2025, taking total warehouses to about 914. The near-term risks include tariff evolution, FX volatility, and potential LIFO-related margin pressure in Q4 if inflation persists. Overall, COST’s multi-channel strategy and disciplined capital allocation support a constructive long-term investment thesis, albeit with elevated near-term macro uncertainty.