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Costco Wholesale Corporation

Costco Wholesale Corporation trades under the ticker symbol COST on the Nasdaq. This page brings together its live stock price, an interactive price chart, and key fundamentals like market capitalization, 52-week range, dividend yield, and the next earnings date, with plain-English context to help you understand what the numbers mean.

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Executive summary

About Costco Wholesale Corporation

Costco runs a membership warehouse model that looks simple but is hard to copy. It sells a limited range of goods in bulk at very low markups, then earns much of its profit from the annual fees members pay for the right to shop there. The low prices drive loyalty, and the loyalty drives the fees.

Scale is the engine. Because Costco buys in enormous volume and keeps its selection deliberately narrow, it negotiates hard with suppliers and passes most of the savings back to members. That price advantage is difficult for smaller rivals to match, and it tends to widen as the company grows.

The business is steadier than most retail because the membership base renews at high rates and provides recurring income that does not depend on any single shopping trip. Costco also returns cash to shareholders through a growing regular dividend and occasional special dividends.

How does Costco Wholesale Corporation make money?

Source: Costco SEC filings (10-K) and investor relations · Last reviewed June 2026

Financial health

Costco Wholesale Corporation scores 66 out of 100 (grade C) across the 4 measures we can read from its filings. Its strongest measure is balance-sheet health (grade A); its weakest is cash generation (grade D).

Rule-based grades derived from annual figures reported to the SEC. Descriptive, not a rating of the investment.

How Costco's business has evolved

Costco grew its revenue steadily (about 9.8% a year) over the 9 years through FY2025, and profit grew even faster, so the business became more profitable as it grew. Its profit margin held roughly steady. Free cash flow grew alongside profit.

Rising. Revenue went from $118.7B in FY2016 to $275.2B in FY2025, about 9.8% a year. The top line is still expanding, the first sign the business is still in demand.

Rising. Profit went from $2.4B in FY2016 to $8.1B in FY2025, about 14.7% a year. The business is keeping more profit over time, not less.

operating margin went from 3.1% to 3.8% (volatile); net margin went from 2.0% to 2.9% (volatile). Margins have held roughly steady, so the business keeps about the same slice of each dollar.

Volatile. Free cash flow went from $643M in FY2016 to $7.8B in FY2025, about 32.0% a year. The profit is showing up as real cash, which is what you want to see.

Over the last 10 years the company returned about $4.9B through buybacks and $27.6B through dividends to shareholders. Whether that cash was spent well depends on the price paid for the stock, which this section does not judge. It shows the choices, not a verdict.

Derived from the annual figures this company reported to the SEC. What is described already happened; it is not a forecast.

Business quality

Can it raise prices without losing customers?

Not reported here. We cannot measure this for Costco from its filings: it does not separately report the direct cost of its product, which is an accounting choice, not a sign of weak pricing. Its competitive advantages are covered below.

Does it get cheaper to run as it gets bigger?

Flat. Costco's sales grew about 9.8% a year, and its operating margin went from 3.1% to 3.8% over the same period.

How steady are its profits, year to year?

Steady. Costco's operating margin barely moved over the last 9 years (from 3.1% to 3.8%).

What protects this business from competitors?

The Investment Case describes Costco's competitive advantages, and the risks that could erode them.

These are the quality measures the financial statements support. Several others, such as brand strength and customer concentration, need human judgment and are not measured automatically.

How management uses cash

Historically, the company has used a mix of reinvestment, buybacks, and dividends.

Reinvestment

On average, capital spending used about 46% of operating cash flow across 10 fiscal years (FY2016-FY2025) - a moderate share of the cash the business generated went back into it.

Buybacks

Reported share repurchases in 10 of the 10 fiscal years shown, totaling about $4.9B (FY2016-FY2025). The reported share count rose about 1% from FY2015 to FY2025.

Dividends

Reported a per-share dividend in 10 fiscal years across FY2012-FY2025. In FY2025, dividends paid totaled about $2.2B.

Debt direction

The total debt balance held roughly steady (within 10%) over the window: about $6.1B in FY2015 vs about $5.8B in FY2025. This describes the balance's direction, not repayments.

Cash position

As of FY2025, held about $14.2B in cash and equivalents vs about $5.8B of total debt - more cash than total debt at that date.

Derived from annual figures this company reported to the SEC (EDGAR XBRL company facts). Descriptive history only: not a forecast, not a rating, not investment advice.

Understanding the risks

What has varied in Costco Wholesale Corporation's past filings, and what to keep an eye on. Descriptive, not a forecast and not a rating.

Financial resilience

Earnings stability

What could go wrong

Investment case

Costco pairs rock-bottom prices with an annual membership fee, so the thin margins on the goods it sells are backed by a durable, high-margin stream of membership fee income. The long term question that frames the stock is whether membership growth and fee income can keep compounding fast enough to justify a consistently premium valuation.

Educational analysis from public filings. This is not a recommendation to buy or sell any security.

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Why investors follow this company

Competitive advantages

What could go wrong

What to watch

Valuation in context

Sources: Costco 10-K (SEC EDGAR), Costco Investor Relations · Last reviewed June 2026

Concepts behind this investment case

Market Cap, Valuation, Price-to-Earnings Ratio

Frequently asked questions

What is the investment case for Costco?

Costco pairs rock-bottom prices with an annual membership fee, so the thin margins on the goods it sells are backed by a durable, high-margin stream of membership fee income. The long term question that frames the stock is whether membership growth and fee income can keep compounding fast enough to justify a consistently premium valuation.

Does Costco have an economic moat?

Enormous purchasing scale and a deliberately narrow selection let Costco undercut almost anyone on price, and that price gap tends to widen as the membership base grows.

What is the bull case for Costco?

Membership fee income is recurring and high-margin, and it tends to grow as the member base expands and as the fee is periodically raised.

What is the bear case for Costco?

The shares usually carry a premium valuation, so slower membership growth or any margin slip can lead to an outsized pullback.

What are the key risks for Costco?

Costco usually trades at a premium valuation, so even small disappointments in growth or margins can move the stock sharply. A meaningful part of the basket is discretionary, so big-ticket sales can soften when consumer spending weakens even as staples hold up.

How should investors think about Costco's valuation?

Costco has long traded at a premium to the broader market and to most retailers, so the real question is whether its membership economics and steady growth justify that premium rather than whether the multiple looks high on its own. Weigh it using the membership, revenue, and margin figures in the company's own filings rather than any outside estimate.

What should investors watch with Costco?

Membership renewal rates and total paid memberships, which show whether the loyalty engine is intact, along with the timing of any membership fee increase.

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Educational content only. Market data is delayed and is not financial advice. Always do your own research and consult a licensed professional before investing.