Costco Wholesale Corp

Costco is making its first major move into Medicare by partnering with nonprofit insurer SCAN Health Plan to offer Costco-branded Medicare Advantage and Supplemental plans. SCAN Group CEO Sachin Jain said the partnership aims to simplify the Medicare experience for older adults, leveraging Costco's strengths in pharmacy, vision, and hearing aids. The plans will initially launch in two states for Medicare Advantage and one state for Medicare Supplemental, though specific states and product details are not yet disclosed due to federal regulations. Jain noted that 70% of SCAN members are already Costco members, and the partnership seeks to provide transparent, reliable benefits. SCAN, which has around 460,000 members across six states, is uncertain about new member numbers but believes the partnership could transform the Medicare Advantage landscape.

Costco Wholesale Corporation reported that traffic from AI search grew at a triple-digit pace in the third quarter of fiscal 2026, though volume remains low. The company said this traffic has the highest conversion rate of all sources directed to its website, and it is working to improve how its merchandise is understood and surfaced by large language models. Costco highlighted appliances and tires as examples where AI search can better communicate included services like delivery, installation, and road-hazard protection. Digitally enabled comparable sales increased 21.5% in the quarter, while e-commerce site and app traffic rose 37%. The company remains in the initial stages of this effort, which could become an increasingly important contributor to digital sales growth if AI-driven traffic continues to scale while maintaining strong conversion.

Costco is partnering with nonprofit insurer SCAN Health Plan to offer Costco-branded Medicare Advantage plans in two states and a Medicare supplement plan in a third state, pending regulatory approval. SCAN already operates Medicare Advantage plans and serves nearly 460,000 members across six states. The companies are also looking at integrating the plans with services Costco already offers, including a revamped pharmacy experience, over-the-counter benefits, and audiology services. CEO Ron Vachris said selecting SCAN as a partner to deliver a better healthcare experience for seniors is an extension of Costco's commitment to members. The move could deepen Costco's relationship with older Americans and give them more reasons to keep their memberships.

Costco Wholesale raised its quarterly dividend from $1.30 to $1.47 per share on April 15, an increase of roughly 13.1%, bringing the annual rate to $5.88 per share. With shares trading around $960, a $10,000 investment would buy roughly 10.4 shares and yield just over $61 annually, a dividend yield of 0.61%. The company has also declared five special one-time dividends since 2012, including a $15 per share payout in 2024, and another could be on the way soon. While the regular yield is modest, the article notes Costco's business is strong and the stock remains a buy for long-term holders despite an elevated valuation.

Costco Wholesale could declare a special one-time dividend later this year, given its growing cash pile and a three-year gap since its last such payout. The warehouse club operator has historically issued special dividends every two to three years, with the most recent being $15 per share on December 27, 2023. Its cash and short-term investments have risen from $15 billion to $20 billion since that payout, while long-term debt remains around $5.7 billion. If Costco follows its pattern of increasing special dividends by at least 40%, the next payout could be $21 per share, yielding about 2.2% on top of the regular 0.6% dividend yield.

Costco Wholesale Corporation reported third-quarter fiscal 2026 membership fee revenues of $1,373 million, up 10.7% year over year, with the September 2024 fee increase contributing a little more than one-fourth of that growth. Excluding the fee increase and foreign exchange effects, membership income still advanced 7%. Executive memberships grew 9.6% to 41.2 million and accounted for 75% of sales, while global renewal rates reached 89.7% and U.S. and Canada renewals ticked up to 92.2%. The company also highlighted that personalized product recommendation carousels delivered conversion rates three times higher than standard rates, generating nearly half a billion dollars in e-commerce sales during the quarter. Costco shares have dropped 10.7% over the past three months, and the stock trades at a forward 12-month price-to-earnings ratio of 42.85, above the industry's 31.18 but below its 12-month median of 45.79.

Costco reported fiscal second quarter revenue of $70.53 billion, up 11.6% year over year and beating analyst estimates by 1.5%, making it the fastest-growing among the four non-discretionary retail stocks tracked. Grocery Outlet posted revenue of $1.19 billion, up 1.1% and exceeding expectations by 2.1%, with its stock rising 6.9% since the report. Albertsons reported revenue of $24.94 billion, flat year over year and missing full-year EBITDA guidance, sending shares down 14.4%. Sprouts Farmers Market reported revenue of $2.33 billion, up 4.7% and in line with estimates, but issued weaker-than-expected EPS guidance for the next quarter and full year.

JD.com reported its first year-on-year quarterly revenue decline since listing, alongside a return to operating profit. Improved results in JD Retail and reduced losses in Food Delivery supported group-level operating profitability. The company announced new partnerships with global brands including Chanel and Costco, adding fresh third-party offerings to its platform.

GEN Restaurant Group announced second quarter 2026 revenue rose 1.2% year-over-year to $55.7 million, while net loss widened to $4.6 million from $1.7 million a year earlier. The company also disclosed it received a non-binding letter of intent from a nationwide multi-concept restaurant operator to acquire its U.S. restaurant operations, which would leave GEN as a pure-play consumer packaged goods company retaining 100% of its CPG business. The CPG division, which grew revenue 341% sequentially and surpassed $2 million in June alone, secured purchase commitments from more than 100 Costco warehouses and new distribution agreements with United Natural Foods and C&S Wholesale Grocers. Comparable restaurant sales declined 9.3% in the quarter, and the company exited six underperforming locations. GEN estimates a forward 12-month CPG revenue run rate of $35 million to $40 million based on doors secured and pipeline.

Instacart reported second-quarter revenue of $1.04 billion, exceeding analyst estimates of $1.03 billion and representing 14.1% year-on-year growth. GAAP earnings per share came in at $0.45, missing the consensus estimate of $0.54 by 16.6%, while adjusted EBITDA reached $313 million, above the $297.8 million forecast. CEO Chris Rogers attributed the performance to accelerated net new customer additions, deeper engagement, and the expansion of AI-powered features such as personalized nutrition tags and enhanced substitution models. The company also highlighted growth in its advertising and enterprise segments, including new partnerships with Costco in France and Spain and Morrisons in the UK. Looking ahead, management guided for 14% growth at the midpoint for the third quarter and expects adjusted EBITDA to outpace gross transaction volume growth as it reinvests in core growth drivers.

Costco Wholesale reported quarterly revenue of $70.5 billion for the period ended May 2026, up from $63.2 billion a year earlier, while General Mills posted a full-year net loss of $87.6 million for its fiscal year ended May 31, 2026, compared to net income of $2.3 billion in the prior year. Costco's net income for the quarter rose to $2.2 billion from $1.9 billion, and the company recently announced a planned increase to its annual membership fees alongside a new rollout of store entry card scanners. General Mills' revenue for the full fiscal year fell 5% to $18.4 billion, weighed by divestitures and nearly $3 billion in restructuring expenses, and the company is navigating a voluntary product recall of frozen dough while implementing a cost-savings plan. The contrasting results highlight Costco's consistent sales expansion driven by its membership model, while General Mills faces challenges from private-label competition and the divestiture of its yogurt business.

Costco Wholesale reported July net sales climbed 10.7% year over year to $23.12 billion from $20.89 billion, yet the stock slipped about 0.3% during Friday's regular session. For the first 48 weeks of its fiscal year, net sales surged 10.1% to $273.55 billion from $248.35 billion a year earlier, with July growing faster than the year-to-date average. The update did not include margins or earnings, but demonstrated continued strength in traffic, pricing power, and the membership model. Shares traded roughly 8.2% below GuruFocus' estimated GF Value of $1,030.

Federal Reserve Chairman Kevin Warsh stated the central bank has "no tolerance for persistently elevated inflation," triggering an 840-point drop in the Dow Jones Industrial Average. Warsh, presiding over his second meeting, kept interest rates steady but signaled that the Fed could raise rates if high inflation persists. The Dow's sharp decline reflected broader market concerns that tighter monetary policy could constrain economic activity and pressure stocks. The index has since recovered on rate stability, but investors are advised to hold defensive stocks like Costco Wholesale and TJX Companies in case of future hikes.

Costco Wholesale is accelerating its entry into the weight loss drug market through GLP-1 prescriptions and related healthcare services, competing with Walmart and Amazon as retailers vie for customers seeking these treatments. Industry cutbacks on employer drug coverage are pushing more patients toward direct-to-consumer fulfillment programs, which could influence how Costco uses its membership model and pharmacy network to engage customers and generate revenue. The stock trades around $954.08 and has risen 127.2% over the past five years. The expansion fits with Costco's focus on ancillary services that support traffic and membership retention, though offering high-cost treatments could challenge its narrative around disciplined cost control if reimbursement or compliance issues arise. Investors may watch how quickly Costco scales GLP-1 services and whether it links them with broader healthcare packages like nutrition or telehealth support.

Costco disclosed in its Q3 earnings call that its aggressively low gas prices are the biggest draw for members, even more than grocery deals or the food court. Executive vice president and CFO Gary Millerchip said gas prices have had a major impact on overall growth and now account for a bigger percentage of monthly member spend. While gas itself is not a huge profit driver due to thin margins, it acts as a powerful traffic builder: members who buy gas visit more frequently, spend more overall, and renew at a higher rate. Millerchip noted that a little under half of members enter the warehouse when they fill up, making gas a healthy barometer of long-term growth.

Costco could become a trillion-dollar company by 2035, reaching $2,250 per share, according to a new analysis. The retailer currently has a market cap of $422.14 billion and shares closed at $951.89. The forecast requires earnings per share to compound at 10% to 11% annually through 2035, with forward EPS reaching the mid-$50s and a 40x multiple. Key drivers include executive membership penetration hitting 75%, e-commerce traffic growing 37%, and expansion of the Kirkland Signature brand. The primary risk is any material break in the 89.7% worldwide membership renewal rate.

US companies are gradually dropping coverage for GLP-1 weight-loss drugs such as Wegovy and Zepbound, pushing more patients to buy medications through direct-to-consumer platforms. This opens the door for retail giants like Walmart, Costco, CVS, and Amazon to rapidly expand health services and draw customers into their own ecosystems. Analysts view the monthly refill prescriptions as a tool for building long-term customer relationships. Eric Bormel, managing director of digital health at Solomon Partners, says retailers are competing to become the first point of care for obesity patients. Meanwhile, drugmakers like Eli Lilly and Novo Nordisk have launched DTC programs with price promotions, such as LillyDirect charging around 299 to 449 dollars per month and NovoCare starting at just 199 dollars per month. Costco has partnered with Sesame to sell Wegovy for about 349 dollars per month for members. Walmart, with roughly 4,600 pharmacies, has expanded its Better Care Services platform to become a comprehensive health service hub. Amazon offers medication starting at just 25 dollars per month through Amazon Pharmacy, with same-day delivery in nearly 3,000 cities. A Mercer survey indicates that 6 percent of large employers dropped GLP-1 drug coverage this year after treatment costs surged, with the share of claims for this drug class rising to 11.4 percent from 6.9 percent in 2023. This intensifies competition among retailers and puts heavy pressure on independent pharmacies.

A Supreme Court ruling that President Trump's broad tariffs under the International Emergency Economic Powers Act exceeded congressional authority could lead to as much as $175 billion in tariff refunds for U.S. businesses, according to economists at the Penn Wharton Budget Model. Import-heavy retailers like Walmart, Costco, and Target, which import billions of dollars in merchandise annually, could see stronger cash flow, improved profit margins, or funds for share repurchases and debt reduction. The refunds would apply only to tariffs collected under the unlawful program and to companies that actually paid those duties, with businesses that absorbed higher costs themselves likely benefiting more than those that shifted production or passed costs to consumers. The ruling does not affect tariffs imposed under other trade authorities such as Section 301 and Section 232, and additional legal proceedings and appeals could delay any payouts, making this a potential medium-term catalyst rather than an immediate earnings boost.

Costco's most valuable member benefit is the trust it has built with shoppers, which goes beyond its well-known low prices. The warehouse club carefully curates a limited assortment, with buyers rigorously vetting products, leading members to believe Costco has done the research for them. This trust is especially strong in the Kirkland Signature house brand, which accounts for around $86 billion in annual sales, or roughly a third of Costco's total revenue. U.S. and Canada membership renewal rates reached 92.2% in the third quarter, while the worldwide rate held at 89.7%, underscoring the loyalty driven by quality and value. Retail analysts note that this trust makes price a secondary factor for many members, who also enjoy the treasure-hunt shopping experience.

Coco5, the athlete-owned hydration brand backed by NBA stars Devin Booker, Charles Barkley, Derrick Rose, and D'Angelo Russell, has signed a retail partnership with Costco, bringing its coconut water-based electrolyte drink to millions of new consumers. The brand rolled out an 18-count variety pack featuring Pineapple, Coconut, and the newly launched Grape flavor to Costco locations across the Midwest, priced at $19.99 and available exclusively through the retailer. The launch follows successful Costco Roadshows and will be supported by additional tastings in California, the Southeast, and the Northwest throughout the summer. Coco5, created by Chicago Blackhawks Head Trainer Mike Gapski, contains 26% real coconut water and five naturally occurring electrolytes, and recently secured a $10 million investment led by Loop Capital to accelerate innovation and retail expansion.

Shares of Costco Wholesale, Verizon, and Kroger each gained roughly 2% on Tuesday as traders sold volatile semiconductor stocks and sought stability in defensive dividend payers. The rotation comes amid intensifying competition from Chinese chipmakers and growing doubts that AI spending will deliver promised returns, punishing companies like Alphabet for rising capital expenditures and threatening once-dominant tech leaders such as ASML Holding. Costco is up 13% in 2026, Verizon has gained 19% with free cash flow up 16% in the first half of the year, and Kroger is down 6% year-to-date, trading at about 11 times forward earnings as it cuts prices to attract at-home diners.

Costco Wholesale has begun operating its Port St. Lucie, Florida distribution center entirely off the power grid, using an on-site solar and battery energy system in partnership with Trinity Energy. The move aligns the facility with Costco's broader net zero and sustainability objectives. The stock closed at $951.58, with a return of 11.4% year to date and 76.9% over three years. The project highlights how Costco is approaching energy costs, reliability, and emissions at a key logistics hub, and may shape future infrastructure and capital allocation decisions.

Costco Wholesale has achieved full energy independence at its Port St. Lucie, Florida distribution center through an on-site solar and battery system developed by Trinity Energy. The integrated platform combines solar power, battery storage, and electric fleet charging to ensure 24/7 reliability for all mission-critical loads, including data centers, while delivering significant long-term energy cost savings, IRA tax credits, and avoidance of rising utility rates. The system was installed faster than a traditional backup solution, bypassing grid interconnection queues and permitting delays. Costco executives Shay Reed and Ime Ntekpere highlighted that the project strengthens facility reliability, reduces strain on the local utility grid during peak demand, and supports the company's sustainability and net-zero goals. Trinity Energy's VP of Design and Engineering, Gonzalo Stabile, noted that the platform provides a scalable model for large facilities such as hyperscale data centers, semiconductor plants, and major logistics operators to achieve operational continuity and cost control independent of grid conditions.

Costco's Kirkland Signature private label is evolving into a powerful growth engine, driving member loyalty and merchandising differentiation. Management highlighted that Kirkland Signature continues to drive growth in food and sundries by offering equal or better quality with savings of at least 15% to 20% compared with national brands. New launches during the third quarter of fiscal 2026 included Kirkland Signature Energy Drink, Ultra Filtered Milk, Sea Salt Popcorn, and Oven Roasted Chicken Dog Food, reflecting expansion into faster-growing categories. The company also lowered prices on several Kirkland Signature staples, including Crispy Wings, Milk Chocolate Almonds, Golf Balls, and King Size Sheets, passing cost efficiencies back to members. Costco shares have dropped 5.9% over the past three months, underperforming the industry's 1.4% decline, while its forward 12-month price-to-earnings ratio stands at 41.93, above the industry's 30.58 but below its 12-month median of 46.07.

Costco Wholesale shares have gained 459.6% over the past decade through July 17, nearly doubling the S&P 500 index's 244.7% return. The company reported a 6.6% increase in same-store sales for the fiscal third quarter ended May 10, excluding gasoline and currency effects, while operating income rose 11.3% year over year to $2.8 billion. Paid memberships reached 82.9 million, up from 82.1 million on February 15, with renewal rates near 90%. The stock trades at a price-to-earnings ratio of 47, above its 10-year median of 37 and the S&P 500's multiple of 32, yet the company continues to expand, having opened 16 new warehouses in the first nine months of the fiscal year and planning 13 more in the final quarter.

Costco Wholesale reported record gasoline demand during the quarter ended May 10 as consumers sought lower prices at the pump. Chief Executive Ron Vachris said several warehouses required multiple fuel deliveries each day, while the final five weeks of the quarter were Costco's busiest ever for gasoline volume. Costco fuel prices averaged about 9 cents per gallon below the five largest local competitors and 24 cents below state averages between April 2025 and March 2026, according to a Gordon Haskett study using GasBuddy data. Chief Financial Officer Gary Millerchip said members who purchase gasoline generally visit more frequently, spend more and renew at higher rates, with slightly fewer than half also entering the warehouse during a fuel stop. Membership fees generated more than $5 billion in revenue during 2025, equal to roughly two-thirds of Costco's net income.

JD.com has partnered with Costco, becoming its exclusive e-commerce partner in China. Through this partnership, JD.com will serve as Costco's sole online sales partner in China. Specific transaction terms and launch timing have not been disclosed.

Costco Wholesale is predicted to reach a $1 trillion market capitalization by 2033, driven by its membership-based profit model and ongoing expansion. The company currently has a market cap of roughly $417 billion and would need about 140% growth to hit the milestone. It counts more than 40 million paid household memberships and over 82 million cardholders, with a renewal rate above 92%, generating nearly pure-profit membership fee income that recently increased. Costco is opening more than 30 new warehouses annually and its e-commerce sales have climbed over 20%, aided by AI-driven product recommendations. Valuation risk exists as the stock trades at a premium, but the durable compounding business model supports a credible path to a trillion-dollar valuation within the next several years.

Costco is expanding its pharmacy and prescription services for members, with CFO Gary Millerchip reporting significant market share gains in the third quarter of 2026. The growth is driven by increased demand for GLP-1 medications, the inclusion of Wegovy and Ozempic in the Member Prescription Program, competitive pricing on pet medications, acceptance of Medicare D over-the-counter flex cards, and the expansion of mail order and specialty pharmacy offerings. Membership fee income totaled $1.37 billion during the quarter, underscoring how enhanced pharmacy benefits help strengthen member loyalty and renewal rates.

Costco Wholesale has introduced the Laifen SE High-Speed Hair Dryer at select warehouse locations in the U.S., marking Laifen's largest U.S. retail expansion so far. The product, previously focused on direct-to-consumer channels, is now available to Costco members in store, expanding Costco's premium health and beauty lineup. The move points to Costco's push to appeal to members willing to pay for technology and convenience, not just bulk staples. Costco's stock last closed at $935.8, with a three-year return of 72.7% and a five-year return of 133.4%.