A membership warehouse club that sells groceries, fresh foods, electronics, and household goods in bulk at low prices across hundreds of warehouses in more than a dozen countries, plus its own Kirkland Signature private-label brand. It traces its roots to Sol Price's Price Club, the world's first membership warehouse, opened in 1976 in San Diego; co-founder Jim Sinegal, a Price protégé, opened the first Costco in Seattle in 1983, and the two chains merged in 1993. Fun fact: the Kirkland Signature name came from Kirkland, Washington, where Costco's headquarters sat when the brand launched in 1995 — Sinegal had wanted "Seattle Signature" but couldn't clear the name.
Q3 FY2026 net income rose to $2.2B as membership fee revenue grew 11% to $1.4B
Membership fee grew 11% to $1.4B this quarter. Revenue rose 12.0% to $69.6B and rose 13.4% to $4.58, with up 18.7% as grew 10% and gasoline prices lifted the top line. The renewal rate slipped to 89.7% worldwide, leaving the membership base as the open question.
Key takeaways
Membership fee grew 11% to $1.4B, driven by new sign-ups, fee increases, and Executive upgrades, while the worldwide renewal rate was 89.7%, below the 90.5% level flagged after FY2025.
Total rose 12.0% to $69.6B and 3.4% from Q2 FY2026's $67.3B, with net sales up 12% to $69.2B on 10% growth (7% excluding fuel and FX) and higher gasoline prices.
rose to $2.0B ($4.58 ) from $1.8B ($4.02) a year earlier, with up 18.7% to $2,606M and the down to 25.4% from 26.2%.
Section summaries
Management's Discussion and Analysis
Net sales rose 12% to $69.2B in Q3 FY2026, driven by 10% comparable sales growth and higher gasoline prices.
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Total increased 12% to $69.2B, with up 10% (7% excluding fuel and FX), led by a 7% rise in average ticket and 2% increase in shopping frequency.
Membership fee grew 11% to $1.4B, driven by new sign-ups, fee increases, and Executive upgrades; worldwide renewal rate was 89.7%.
was 12.8%, down 0.3 points from Q2 FY2026's 13.1%; the standalone rate fell 21 to 11.04%, though excluding gasoline price inflation it rose 1 bp on a smaller and pharmacy/e-commerce gains.
increased to $11.1B from $9.5B for the first 36 weeks, supported by higher and faster turns; were $4.2B against a ~$6.5B full-year plan.
SG&A as a percentage of improved 20 to 8.96%, or 2 bps excluding gasoline inflation, aided by the absence of a prior-year vacation charge.
What changed
Q3 FY2026 : the consolidated rate was 12.8%, down 0.3pt from Q2 and below the 12.8% FY2025 level; core merchandise pressure from 2% rewards flagged after Q2 did not deepen as the standalone rate rose 1 bp ex-gasoline.
Worldwide membership renewal was 89.7%, still below the 90.5% flagged after FY2025 and unchanged from Q2 FY2026's 89.7%, not returning above 90.5% as earlier filings watched.
FY2026 pace: $4.2B spent through Q3 against the ~$6.5B plan, after $2.815B in H1, leaving H2 spend on track for the 25 new warehouse openings.
Q3 rose 12% with 10% (7% ex-fuel/FX), confirming the 7% comparable pace from Q2 and above the 6% seen in Q3 FY2025.
Risk factors were restated with no material changes from the FY2025 10-K, so no new company-specific risk emerged this quarter.
What to watch
Next disclosure of worldwide membership renewal rate to see if it returns above 90.5% from 89.7%.
Q4 FY2026 consolidated to see if 12.8% holds or core merchandise pressure from 2% rewards resumes.
Full-year FY2026 against the ~$6.5B plan after $4.2B spent in 36 weeks and the pace of remaining warehouse openings.
Q4 and growth to confirm the 10% comparable pace continues without gasoline price distortion.
percentage decreased 21 to 11.04%, but excluding gasoline price inflation it rose 1 bp, helped by a smaller and pharmacy/e-commerce gains.
as a percentage of improved 20 to 8.96%, or 2 bps excluding gasoline inflation, aided by the absence of a prior-year vacation charge.
increased to $11.1B from $9.5B, supported by higher and faster turns; were $4.2B with full-year plans of ~$6.5B.
The fell to 25.4% from 26.2%, and rose to $2.2B ($4.93 per diluted share) from $1.9B ($4.28 per diluted share).
Quantitative and Qualitative Disclosures About Market Risk
Our direct exposure to financial market risk results from fluctuations in foreign-currency exchange rates and interest rates. There have been no material changes to our market risks as disclosed in our Annual Report on Form 10-K, for the fiscal year ended August 31, 2025.
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Our direct exposure to financial market risk results from fluctuations in foreign-currency exchange rates and interest rates. There have been no material changes to our market risks as disclosed in our Annual Report on Form 10-K, for the fiscal year ended August 31, 2025.
In addition to the other information set forth in the Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K, for the fiscal year ended August 31, 2025. There have been no material c…
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In addition to the other information set forth in the Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K, for the fiscal year ended August 31, 2025. There have been no material changes in our risk factors from those disclosed in our Annual Report on Form 10-K.
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