Costco (COST) Q3 FY26 earnings call

Earnings call· May 2026 (Q3 FY26)· Consumer Staples· May 28, 2026

Source: earnings call transcript

A textbook Costco quarter: record gas volumes plus deliberate everyday-price investment on staples pressured core-on-core margin, but management framed it as strategic reinvestment funded by a lapping LIFO benefit, not competitive pressure. Membership growth is normalizing to a steadier cadence as new-market openings pause, while digital, pharmacy, and nascent retail media build the next leg. Forward stance: keep investing in growth and stay disciplined on rational pricing.

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COST operating KPIs by quarter

COST operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Feb 2025 Q2 FY25	May 2025 Q3 FY25	Aug 2025 Q4 FY25	Nov 2025 Q1 FY26	Feb 2026 Q2 FY26	This call May 2026 Q3 FY26	Aug 2026 Q4 FY26	Change vs prior quarter
New warehouses opened	1 While we only opened 1 new warehouse in the second quarter of fiscal '25, we have big plans for the rest of the fiscal year. Source: earnings call transcript	—	10 In the fourth quarter, we opened 10 new warehouses, including a relocation in Canada, our 20th warehouse in Korea, our second warehouse in Sweden and 5 net new locations in the US For the fiscal year, we opened 27 new warehouses, including 3 relocations for a total of 24 net new buildings. Source: earnings call transcript	8 In Q1, we opened 8 new warehouses, including a relocation in Canada, our third warehouse in France, 4 net new US locations and 2 additional Canadian business centers. Source: earnings call transcript	—	4 In the quarter, we opened 4 net new warehouses, including 3 in the US and 1 additional Canadian business center. Source: earnings call transcript	12 In the fourth quarter, we opened 12 warehouses, including a relocation in Taiwan, 10 new US buildings and our 43rd warehouse in Mexico. Source: earnings call transcript	+200%
Membership renewal rate US and Canada	93% In terms of renewal rates, at Q2 end, our US and Canada renewal rate was 93%. Source: earnings call transcript	92.7% In terms of renewal rates at Q3 end, our US and Canada renewal rate was 92.7% and the worldwide rate came in at 90.2%. Source: earnings call transcript	92.3% In terms of renewal rates at Q4 end, our US and Canada renewal rate was 92.3% and the worldwide rates came in at 89.8%. Source: earnings call transcript	92.2% In terms of renewal rates, at Q1 end, our US and Canada renewal rate was 92.2%, and the worldwide rate came in at 89.7%, both down 10 basis points from last quarter. Source: earnings call transcript	92.1% In terms of renewal rates, at Q2 end, our US and Canada renewal rate was 92.1%, down 10 basis points from last quarter, and the worldwide rate came in at 89.7%, unchanged from last quarter. Source: earnings call transcript	92.2% In terms of renewal rates, at Q3 end, our US and Canada renewal rate was 92.2%, up 10 basis points from last quarter, and the worldwide rate came in at 89.7%, unchanged from last quarter. Source: earnings call transcript	92.3% In terms of renewal rates, at Q4 end, our US and Canada renewal rate was 92.3%, up 10 basis points from last quarter, and the worldwide rate came in at 89.8%, also up 10 basis points. Source: earnings call transcript	+0.1 pt
Membership renewal rate Worldwide	90.5% The worldwide rate came in at 90.5%. Source: earnings call transcript	90.2% In terms of renewal rates at Q3 end, our US and Canada renewal rate was 92.7% and the worldwide rate came in at 90.2%. Source: earnings call transcript	89.8% In terms of renewal rates at Q4 end, our US and Canada renewal rate was 92.3% and the worldwide rates came in at 89.8%. Source: earnings call transcript	89.7% In terms of renewal rates, at Q1 end, our US and Canada renewal rate was 92.2%, and the worldwide rate came in at 89.7%, both down 10 basis points from last quarter. Source: earnings call transcript	89.7% In terms of renewal rates, at Q2 end, our US and Canada renewal rate was 92.1%, down 10 basis points from last quarter, and the worldwide rate came in at 89.7%, unchanged from last quarter. Source: earnings call transcript	89.7% In terms of renewal rates, at Q3 end, our US and Canada renewal rate was 92.2%, up 10 basis points from last quarter, and the worldwide rate came in at 89.7%, unchanged from last quarter. Source: earnings call transcript	89.8% In terms of renewal rates, at Q4 end, our US and Canada renewal rate was 92.3%, up 10 basis points from last quarter, and the worldwide rate came in at 89.8%, also up 10 basis points. Source: earnings call transcript	+0.1 pt
Paid members	78.4M We ended Q2 with 78.4 million paid household members, up 6.8% versus last year and 140.6 million cardholders, up 6.6% year-over-year. Source: earnings call transcript	79.6M We ended Q3 with 79.6 million paid household members, up 6.8% versus last year and 142.8 million cardholders, up 6.6% year-over-year. Source: earnings call transcript	81M New member sign-ups continue to be strong, and we ended the fiscal year with 81 million total paid members, up 6.3% versus last year and 145.2 million cardholders, up 6.1% year-over-year. Source: earnings call transcript	81.4M We ended the quarter with 81.4 million total paid members, up 5.2% versus last year and 145.9 million cardholders, up 5.1% year-over-year. Source: earnings call transcript	82.1M We ended the quarter with 82.1 million total paid members, up 4.8% versus last year and 147.2 million cardholders, up 4.7% year-over-year. Source: earnings call transcript	82.9M We ended the quarter with 82.9 million total paid members, up 4.1% versus last year and 148.5 million cardholders, up 4% year-over-year. Source: earnings call transcript	84.1M We ended the quarter with 84.1 million total paid members, up 3.8% versus last year and 150.4 million cardholders, up 3.6% year-over-year. Source: earnings call transcript	+1.4%
Cardholders	140.6M We ended Q2 with 78.4 million paid household members, up 6.8% versus last year and 140.6 million cardholders, up 6.6% year-over-year. Source: earnings call transcript	142.8M We ended Q3 with 79.6 million paid household members, up 6.8% versus last year and 142.8 million cardholders, up 6.6% year-over-year. Source: earnings call transcript	145.2M New member sign-ups continue to be strong, and we ended the fiscal year with 81 million total paid members, up 6.3% versus last year and 145.2 million cardholders, up 6.1% year-over-year. Source: earnings call transcript	145.9M We ended the quarter with 81.4 million total paid members, up 5.2% versus last year and 145.9 million cardholders, up 5.1% year-over-year. Source: earnings call transcript	147.2M We ended the quarter with 82.1 million total paid members, up 4.8% versus last year and 147.2 million cardholders, up 4.7% year-over-year. Source: earnings call transcript	148.5M We ended the quarter with 82.9 million total paid members, up 4.1% versus last year and 148.5 million cardholders, up 4% year-over-year. Source: earnings call transcript	150.4M We ended the quarter with 84.1 million total paid members, up 3.8% versus last year and 150.4 million cardholders, up 3.6% year-over-year. Source: earnings call transcript	+1.3%
Executive members	36.9M At Q2 end, we had 36.9 million paid Executive Memberships, up 9.1% versus last year. Source: earnings call transcript	37.6M At Q3 end, we had 37.6 million paid executive memberships, up 9% versus last year. Source: earnings call transcript	38.7M At Q4 end, we had 38.7 million paid executive memberships, up 9.3% versus last year. Source: earnings call transcript	39.7M At Q1 end, we had 39.7 million paid executive memberships, up 9.1% versus last year. Source: earnings call transcript	40.4M At Q2 end, we had 40.4 million paid executive memberships up 9.5% versus last year. Source: earnings call transcript	41.2M At Q3 end, we had 41.2 million paid executive memberships, up 9.6% versus last year. Source: earnings call transcript	42.3M At Q4 end, we had 42.3 million paid executive members, up 9.4% versus last year. Source: earnings call transcript	+2.7%
Warehouses Worldwide	—	—	914 This brings our total warehouse count to 914 worldwide. Source: earnings call transcript	921 This brings our total warehouse count to 921 worldwide. Source: earnings call transcript	924 This brings our total warehouse count to 924 warehouses worldwide. Source: earnings call transcript	928 Those openings brought our total warehouse count to 928 worldwide. Source: earnings call transcript	939 This brings our warehouse count to 939 worldwide. Source: earnings call transcript	+1.2%
Employees	—	—	—	340K+ I'd like to recognize the outstanding work done by our more than 340,000 employees around the world. Source: earnings call transcript	—	—	355K As a management team, we continue to be incredibly proud of our 355,000 employees worldwide and the culture that they help foster. Source: earnings call transcript	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

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