Costco (COST.US) Q4 revenue and profit beat expectations, paid membership growth fell short of expectations.

On Thursday after the U.S. stock market close, Costco (COST.US) reported fiscal 2026 fourth-quarter results for the period ended Aug. 30. The data showed that Costco's Q4 total revenue rose 11% year over year to $95.72 billion, beating market expectations; adjusted earnings per share were $6.57, also better than expected, with tariff refunds contributing 15 cents to EPS. The data also showed that in the fourth fiscal quarter, membership fee revenue increased 7% to $1.85 billion, slightly above market expectations. Paid membership growth during the same period fell short of expectations. The company's stock price moved little in after-hours trading. The large warehouse retailer, which operates more than 900 stores worldwide, has gained an edge through competitive prices, bulk-sized products and merchandise that is hard to find elsewhere. Its limited-selection model focusing on only a few choices in each category allows it to respond flexibly and efficiently to tariffs and other macroeconomic challenges. Executives said on a Thursday call with analysts that Costco's gasoline and travel businesses performed well, while home goods, small electronics and beauty products also drove sales growth. Adjusted same-store sales rose 6.7% in the quarter, better than expected. Executives said the company received $184 million in tariff refunds last quarter and has received roughly the same amount in the current quarter. The company mainly used the refund proceeds to lower prices on items such as meat, Shenzhen Agricultural Power Group, beverages and household goods. Chief Financial Officer Gary Millerchip said food inflation has remained at a similar level in recent months. Prices for some non-food products have risen due to higher memory chip costs and higher oil prices caused by Middle East conflicts. The company said younger consumers continue to join Costco, with the number of members under 40 up nearly 60% since the pandemic. This group now accounts for more than 25% of Costco shoppers. Chief Executive Officer Ron Vachris said they initially spend less but eventually accelerate their growth. In recent years, Costco has sought to expand its digital footprint by partnering with third-party delivery companies such as Instacart, DoorDash and Uber Technologies. The company's e-commerce segment is growing faster than other areas and helps attract younger shoppers. On a comparable basis, digital sales rose nearly 20%. In recent months, consumer confidence has remained weak amid high oil prices and inflation. This has triggered increasingly fierce competition, with companies trying to attract price-sensitive shoppers through the right product mix. Walmart Inc., Kroger Co. and Albertsons Companies, Inc. Class A are using tariff refunds to fund price cuts.