TLDR
- Costco net sales grew 14.5% year-over-year to $24.01 billion in May
- Comparable sales rose 12.5%, with the US remaining the top driver
- Digital sales climbed 21.1% during the month
- COST stock is up roughly 12% year-to-date, outpacing Walmart and BJ’s Wholesale
- Analysts hold a Moderate Buy consensus with an average price target of $1,104.95
Costco stock rose about 1% in Thursday’s pre-market session after the company posted May net sales of $24.01 billion, up 14.5% from $20.97 billion a year ago.
Costco Wholesale Corporation, COST
The result builds on a strong third quarter for fiscal 2026, which ended May 10 and saw sales grow 11.6%. Net income for Q3 came in at $2.19 billion, with diluted EPS of $4.93.
For the first 39 weeks of the current fiscal year, net sales reached $221.19 billion â a 10% increase from the same period last year.
Comparable sales, which track stores open for at least a year, rose 12.5% in May. US customers continued to lead that growth.
Digital sales were another bright spot, rising 21.1% during the month. Online growth has been a consistent theme for Costco as more members shift some of their spending to its website.
One product launch worth noting: Costco exclusively rolled out O Positiv Health’s URO Vaginal Probiotic at 235 warehouses and on Costco.com. It’s a small but telling sign of how the retailer is pushing into higher-value wellness categories to keep members engaged.
Gasoline also played a role in Q3 results, with record fuel volumes boosting revenue. The flipside is that high gas sales tend to compress margins, which is something investors are watching.
Why Analysts Are Cautious
Despite the strong numbers, Wall Street isn’t fully convinced. The main concern is valuation â COST currently trades at the highest multiple among large-cap consumer goods companies.
Membership growth has also shown some deceleration, which matters a lot given that fees are central to how Costco makes money. Any softness in renewal rates would be a red flag for the business model.
Gross margin pressure on core categories like food, electronics, and clothing is another sticking point analysts have flagged in recent months.
COST stock is up about 12% year-to-date, ahead of both Walmart and BJ’s Wholesale Club. That outperformance reflects confidence in the business, but it also makes the valuation harder to justify for some.
What Analysts Are Saying
Of 24 analysts covering the stock over the past three months, 16 rate it a Buy, seven say Hold, and one says Sell â giving it a Moderate Buy consensus.
The average price target sits at $1,104.95, implying around 15% upside from current levels.
More bullish analysts project revenue of up to $376.8 billion and earnings near $12.6 billion by 2029. A separate fair value model puts COST at $1,048, suggesting about 9% upside.
Costco’s long-term revenue projection from analysts sits at $329 billion by 2028, with earnings expected to reach $10.4 billion.
The next major data point for investors will be Costco’s full fiscal year results, as the company continues to report monthly sales figures through the remainder of 2026.
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