Costco Wholesale Corp (NASDAQ:COST) posted solid Q3 results, with a slight beat on revenue at $23.38 billion and earnings per share of $4.28. While there was nothing flashy, the company continues to deliver steady growth in both sales and membership revenue—true to form. E-commerce remains a relatively small piece of the pie, still under 10% of total sales, but it’s growing at a healthy double-digit pace year over year.
Inflation and tariffs remain notable headwinds, particularly since roughly one-third of Costco’s warehouse inventory is imported—much of it from China. Management has taken steps to mitigate these pressures, but further cost impacts are expected. In addition, slightly lower renewal rates in some of Costco’s newer international markets raise questions about long-term growth potential outside the U.S., especially given that international expansion is a key pillar of the revenue growth narrative.
The company’s approach to investor relations continues to reflect its disciplined culture: transparent monthly sales disclosures and clear, focused earnings materials. CFO Gary Millerchip provided thoughtful commentary on how Costco accounts for inflation, proactively walking analysts through key details to avoid misinterpretation—underscoring the company’s commitment to clarity rather than financial smoke and mirrors. Great company and business but the PEG ratio is uncomfortably high.
For more details, key highlights, and commentary, check out the high-level earnings summary.
