Costco Wholesale CorporationCOST
NasdaqGS•Consumer Defensive•Discount Stores
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. It offers merchandise, including sundries, dry groceries, candies, coolers, freezers, deli, liquor, and tobacco; non-food merchandise comprising appliances, small electronics, health and beauty aids, hardware, lawn and garden, sporting goods, tires, toys and seasonal, automotive, stamps, tickets, apparel, furniture, domestics, housewares, special order kiosks, and jewelry; and fresh food, such as meat, produce, service deli, and bakery products. The company is also involved in warehouse ancillary operations, which include gasoline, pharmacies, optical, food courts, hearing-aid centers, and tire installation centers. In addition, it engages in e-commerce, business centers, travel, and other businesses. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.
Costco Wholesale Corporation (COST) reported trailing twelve months revenue of $293.59B as of May 2026, a 9.2% increase year-over-year. Quarterly revenue reached $70.53B, reflecting continued top-line momentum.
Costco Wholesale Corporation generated $8.84B in TTM net income, with quarterly EBITDA of $3.41B. The operating margin contracted from 4.0% to 4.0%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (4.0%) and net margin (3.1%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 3.0% a year ago, signaling stronger bottom-line efficiency.
COST trades at a P/E of 50.7x (a premium multiple) and a P/S of 1.5x. The price-to-book ratio of 13.4x indicates a significant premium over book value.
The company generated $2.04B in free cash flow over the trailing twelve months, a 12.6% decrease year-over-year, indicating cash generation ability. The balance sheet shows $86.43B in total assets with $5.67B in long-term debt against $33.51B in stockholders equity for a debt-to-equity ratio of 0.2, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~3.8% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 28.6% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~15.4% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~3.8% — no sign of cost or pricing stress.
FCF covers net income by 1.0x on average — earnings are well-supported by cash generation.
D/E ratio is 0.2 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation