Good: Costco beats on revenue and EPS; comps solid and membership fees surge, though growth cools vs Q3
Verdict: Good. Costco’s Q4 FY2025 topped expectations on both revenue and earnings, supported by healthy comparable sales and a big jump in membership fee income. Total revenue was $86.16B versus $86.06B expected; diluted EPS was $5.87 versus $5.80 expected. Shares were down about 0.3% in after-hours trading around 7:00 p.m. ET on Sep 25. (globenewswire.com)
Comparable sales (same-store sales: sales at locations open at least a year) rose 6.4% excluding gas and currency effects, with e-commerce up 13.5%. Membership fees climbed 14% to $1.72B, aided by last fall’s fee hike and member growth. (globenewswire.com)
What drove the quarter
Top line: Revenue grew 8% year over year to $86.16B. Net income rose to $2.61B (EPS $5.87) from $2.35B ($5.29) a year ago. (globenewswire.com)
Traffic and mix: Adjusted comps were +6.4% overall, with the U.S. at +6.0%, Canada +8.3%, and Other International +7.2%. E-commerce continued to outpace stores at +13.5%. (globenewswire.com)
Margins: Operating income was $3.34B; on our math, operating margin was roughly 3.9%, about flat versus last year. (globenewswire.com)
Members: Membership fee revenue reached $1.72B, up 14% year over year, reflecting higher fees that began Sept. 1, 2024, and continued member growth. (globenewswire.com)
One-offs: Last year’s Q4 included a non-recurring tax benefit worth about $0.14 per share; this year did not, so the underlying EPS improvement is a bit stronger than the headline suggests. (globenewswire.com)
Context vs. expectations and history
Against consensus, Costco beat on both lines: revenue $86.16B vs. $86.06B expected and EPS $5.87 vs. $5.80. The company typically does not provide an annual outlook. (cnbc.com)
Versus last year, adjusted comps slowed to +6.4% from +6.9% in Q4 FY2024, and e-commerce growth cooled to +13.5% from +19.5%. Sequentially, total adjusted comps also eased from +8.0% in Q3 FY2025. These help explain a muted stock reaction despite the beat. (investor.costco.com)
Scale and footprint: Costco ended the quarter operating 914 warehouses worldwide. The Q4 period covered 16 weeks (same as last year), which supports clean year-over-year comparisons. (globenewswire.com)
| Metric | Q4 FY2025 | Consensus/Context | Y/Y detail |
|---|---|---|---|
| Revenue (total) | $86.16B | $86.06B expected (LSEG) | +8% vs. $79.70B |
| Diluted EPS | $5.87 | $5.80 expected (LSEG) | +11% vs. $5.29 |
| Comp sales (ex gas/FX) | +6.4% | — | vs. +6.9% (Q4 FY2024) |
| E-commerce (ex gas/FX) | +13.5% | — | vs. +19.5% (Q4 FY2024) |
| Membership fees | $1.72B | — | +14% y/y |
What to watch next
Member metrics: Renewal rates, Executive-tier mix, and any signs of fee-related churn. Membership fee growth has been a key profit driver; its sustainability matters.
Comp trends: Whether comps stabilize near mid‑single digits or reaccelerate into the holidays, including in non-food discretionary categories and e-commerce.
Costs and margins: Any shift in merchandise mix or price investments that could pressure margins; Costco’s model typically keeps margins thin but steady.
Expansion: New warehouse openings and international momentum, given the 914-warehouse base. (globenewswire.com)