Costco $COST Wholesale reported fiscal third-quarter net sales of $69.15 billion on Thursday, up 11.6% from a year earlier, as record gasoline volumes and surging e-commerce drove results above Wall Street expectations.
Total revenue, including membership fees, reached $70.53 billion. Analysts had expected $69.81 billion, according to CNBC. Net income for the quarter rose to $2.19 billion, or $4.93 per diluted share, from $1.90 billion, or $4.28 per diluted share, in the same period last year. Adjusted earnings per share of $4.93 met analyst expectations.
Costco CEO Ron Vachris told analysts that gas demand hit unprecedented levels, with the quarter's closing stretch producing the chain's best-ever sales weeks. Vachris said on the call that escalating fuel costs tied to the Middle East conflict had drawn shoppers to Costco's pumps who had never used them before. "Against the backdrop of ongoing macro uncertainty, our focus is providing quality goods and services at the lowest possible price," he said.
When fuel prices are factored in, domestic comparable-store sales climbed 9.4% during the period, outpacing the roughly 7% gain analysts had forecast. Strip out currency swings and fuel price effects and the comparable-sales gain narrows to 6.6%. Online and app visits surged 37%, the company said, while digitally enabled sales increased 21.5%. The membership base expanded 4.1% year over year, and Bloomberg reported a renewal rate of 89.7% for the quarter.
Vachris noted that gas-station users historically generate higher warehouse spending, making the fuel traffic a potential long-term revenue driver. Top-selling categories during the quarter included pharmacy, home furnishings, and gold and jewelry, the company said. Vachris said the retailer is now actively filing for refunds on tariffs struck down by the Supreme Court. He described an ongoing process in which payments would arrive over coming months as claims clear approval, with any money recovered to be passed along to members in some fashion — the exact method depending on how much ultimately comes in. "Our goal is to be the first to lower prices and the last to raise them," he said.
Shares barely moved in after-hours trading Thursday. Heading into the report, the stock had already added roughly 15% in 2026.