The news: Costco continues to push the right buttons, beating analysts’ expectations on both the top and bottom line in its fiscal Q2.

The warehouse club gained share and outpaced competitors such as Walmart, Target, Best Buy, and Dollar General in the holiday quarter, driven by its disciplined focus on value and a curated assortment of high-quality goods.

The numbers:

• Earnings per share of $4.58, up 13.9% YoY and ahead of the $4.54 expected.
• Revenues of $69.6 billion, up 9.2% and topping the $69.3 billion forecast.
• Adjusted comparable sales growth of 6.7%.
• Membership fees of $1.36 billion, signaling that a growing share of consumers see value in paying to shop the warehouse club.

Implications: Costco is emerging as a clear winner in a K-shaped economy. Its focus on value and strong appeal among higher-income shoppers is resonating in a challenging macro environment.

Robust sales and comparable growth are widening the gap with many peers, while strong membership revenues underscore the stickiness of its model and provide a recurring, high-margin stream that supports profitability.

The retailer plans to open 28 to 35 new warehouse locations in fiscal 2026, which ends in August, reinforcing its confidence in continued demand and giving it additional runway for growth. As it expands its footprint and refines its value proposition, Costco appears well positioned to sustain its momentum.

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