Costco (COST) Q3 2026 earnings

Costco Wholesale It said Thursday that the fiscal third quarter saw “record-breaking volumes” for gas amid rising fuel prices.

CEO Ron Vachris said the last five weeks of the quarter ending May 10 became Costco’s five highest-volume weeks ever as customers sought cheaper gas amid war in the Middle East.

“In an environment of ongoing macro uncertainty, our focus is on providing quality goods and services at the lowest possible price,” Vachris said on a call with analysts. he said.

The company also said it saw its first customers coming to Costco for gas stations this quarter.

“As members who use our gas stations typically spend more with us at the depot, we believe this will further increase loyalty to these members in the future,” he said.

The comments came as Costco reported an increase in net sales in its fiscal third quarter that beat Wall Street’s revenue expectations for the period.

The company reported net sales of $69.15 billion, up 11.6% from last year. It said adjusted comparable sales rose 6.6% in the quarter, while digital sales rose about 21%.

Here’s how Costco performed: fiscal third quarter, Compared to Wall Street expectations, according to a survey of analysts by LSEG:

• Earnings per share: Expected to be $4.93 while it was $4.93
• Revenues: 70.53 billion dollars, while the expectation was 69.81 billion dollars

For the quarter, Costco reported net income of $2.19 billion, or $4.93 per share, compared to $1.9 billion, or $4.28 per share, in the year-earlier period. Revenue rose to $70.53 billion, up from $63.2 billion in the same period last year.

Costco said paid memberships rose 4.1% in the quarter, while it saw a 37% increase in traffic on its website and app. Its top selling categories include pharmacy, home furniture, and gold and jewellery.

Costco has been at the forefront of a tariff dispute with the Trump administration after a Supreme Court decision invalidated some of President Donald Trump’s tariffs on foreign imports. The retailer had previously said it would reduce its prices if it received a tariff refund following the Supreme Court ruling.

Vachris on Thursday said the company has begun submitting tariff refund requests and expects to gradually receive refunds on its approved requests over the next few months. He added that the plan is to return those funds to members “in some way,” but those details will depend on actual returns.

“Our goal is to be the first to lower prices and the last to raise them,” Vachris said.

Analysts had previously expected the company to see higher demand at the start of the war in the Middle East due to cheaper gas prices and value propositions appealing to more cost-conscious consumers.