Costco Q4 sales hit $84.4B: What's fueling the 8% revenue growth?

Zacks Zacks Investment Research

Costco Wholesale Corporation (COST) reported a robust financial performance for its fourth quarter of fiscal 2025 with net sales reaching $84.4 billion, an 8% increase from $78.2 billion last year. This growth was supported by strong comparable sales gains across multiple regions and a notable contribution from e-commerce channels.

Comparable sales for the quarter rose 5.7%, reflecting a 5.1% gain in the United States, a 6.3% increase in Canada and a solid 8.6% rise in other international markets. When excluding the impacts of changes in gasoline prices and foreign exchange, total comparable sales rose 6.4%. Canada led with an 8.3% increase, followed by 7.2% growth in other international markets and 6% jump in the U.S market. This highlights Costco’s ability to deliver consistent gains despite currency headwinds and uneven macroeconomic conditions.

E-commerce continued to stand out with comparable sales climbing 13.6% for the quarter, or 13.5% after adjusting for fuel and currency impacts. Momentum was even stronger in August, when the metric surged 18.4%. For the fiscal year, e-commerce comparable sales climbed 15.6%, reinforcing the importance of the company’s investments in omnichannel capabilities.

At quarter-end, Costco operated 914 warehouses globally, including 629 in the United States and Puerto Rico and 110 in Canada, along with a growing presence in markets such as Mexico, Japan and the United Kingdom.

A blend of steady traffic at physical locations, solid international growth and accelerating e-commerce sales powered Costco’s fourth-quarter revenue gains. These factors combined to deliver an 8.1% increase in net sales of $269.9 billion for the fiscal year despite a challenging economic environment.

Walmart and Target’s trends offer industry context

Walmart Inc. (WMT) continued to deliver steady traffic gains with U.S. comparable sales rising 4.6% in the second quarter of fiscal 2026, supported by strength in grocery, health & wellness, and improving trends in general merchandise. E-commerce momentum remained strong as U.S. e-commerce sales advanced 26%, powered by nearly 50% growth in store-fulfilled delivery orders, with roughly one-third completed within three hours.

Target Corporation (TGT) showed early signs of stabilization following a challenging first quarter of fiscal 2025. While second-quarter sales dipped 0.9% year over year, in-store traffic trends improved significantly. Digital performance was also a bright spot, with comparable digital sales growing 4.3%, driven by robust same-day delivery offerings and expanding Drive Up services.

What the latest metrics say about Costco

Costco stock has risen 7.5% over the past year, outpacing the industry’s growth of 6.9%.

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From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 48.45, higher than the industry’s ratio of 30.80. COST carries a Value Score of D.

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The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 8.1% and 11.6%, respectively.

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