Costco Wholesale Corp

Costco Wholesale turned in a convincing fiscal third quarter, posting diluted EPS of $4.28 — a 4.20% beat against the $4.1073 consensus — while revenue of $63.20 billion edged past estimates by 0.20%, as the warehouse giant demonstrated that its membership model and scale continue to insulate it from a choppy consumer environment. Net income climbed 13.2% year-over-year to $1.90 billion, with the headline numbers underpinned by comparable traffic growth of 5.2% across all geographies and a 14.8% surge in e-commerce comparable sales, underscoring that members are shopping more often and across more channels. Gross margin expanded 41 basis points to 11.25%, reflecting disciplined merchandising even as LIFO charges and a new employee agreement introduced some cost pressure. Membership income grew 10.4%, with worldwide renewal rates holding at 90.2%, reinforcing the loyalty flywheel that drives Costco's earnings predictability. With <a href="https://247wallst.com/investing/2025/05/29/costco-cost-earnings-stock-split-buzz-builds-as-shares-test-record-highs/">shares testing record highs</a>, the quarter arrives as Costco actively works to offset tariff headwinds through supplier negotiations and local sourcing rather than passing costs to members.