Costco Wholesale Corp (NASDAQ:COST) stock rose 1.60% (As on March 6, 11:18:12 AM UTC-4, Source: Google Finance) after the company beat estimates for holiday-quarter sales and profit and said it would cut prices if it received any refunds from the U.S. Supreme Court’s decision to strike down President Donald Trump’s emergency tariffs. Costco was among over 1,000 businesses that sued the government saying Trump lacked legal authority to impose tariffs under the 1977 International Emergency Economic Powers Act. The company had cut prices on items such as textiles, bedding and cookware after tariffs were reduced on countries including China following the Supreme Court decision. The company’s quarterly same-store sales, excluding gas, rose 6.7%, compared with analysts’ estimates of a 5.88% rise, according to data compiled by LSEG. Net income for the second quarter rose nearly 14% to $2.04 billion. The balance sheet remains fortress-like, with cash and equivalents swelling to $17.38 billion, up from $14.16 billion at the end of the prior fiscal year. Operating cash flow for the 24-week period was a robust $7.68 billion.
Moreover, U.S. comparable sales rose 5.9%, while Canada and Other International markets showed stronger growth at 10.1% and 13.0%, respectively. Digital sales surged 22.6% during the period. The company reported February sales of $21.69 billion, a 9.5% increase from $19.81 billion in the prior year. Comparable sales for February rose 7.9%, with the timing of Lunar and Chinese New Years positively impacting Other International sales by approximately 4.0%. Costco currently operates 924 warehouses globally, including 634 in the United States and Puerto Rico, 114 in Canada, and 176 across other international markets. The company also operates e-commerce sites in eight countries.
COST in the second quarter of FY26 has reported the adjusted earnings per share of $4.58, beating the analysts’ estimates for the adjusted earnings per share of $4.55. The company had reported the adjusted revenue growth of 9.1 percent to $69.6 billion in the second quarter of FY26, beating the analysts’ estimates for revenue of $69.25 billion. Membership fee income increased by 13.6% year-over-year, driven by growth in the membership base and upgrades to executive memberships. The renewal rate for U.S. and Canada memberships declined by 10 basis points, attributed to lower renewal rates among new online members. Gasoline sales experienced mid-single-digit declines due to price deflation, impacting overall sales growth.
The press release did not provide a formal financial outlook. However, for the current fiscal year 2026, the consensus sales estimate stands at approximately $302.9 billion. For the upcoming third quarter, analysts are projecting sales around $69.65 billion.