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During Costco's Q1 2026 earnings call, management highlighted a robust quarter with net sales reaching $65.98 billion, an 8.2% increase from the prior year. Operating income showed significant growth, driven by strategic expansion plans, including opening eight new warehouses globally and maintaining a focus on improving member experience through digital and technology initiatives. Membership income grew 14% year over year, with substantial upgrades to executive membership representing a key driver. Strategically, Costco is integrating AI into operations, notably in the pharmacy sector, improving inventory management drastically. The call also emphasized ongoing digital advancements such as personalization features to sustain member engagement. While digital acquisition of members poses a slight challenge in renewal rates, management is optimistic about reversing the trend with targeted strategies. The Q&A session reinforced the company's commitment to maintaining competitive pricing while embracing technological innovation for continued growth and efficiency. Analysts expressed positive sentiments around Costco's strategic focus and operational enhancements, with expectations of sustained performance in coming quarters.
In Q1, we opened eight new warehouses, including expansions in Canada and France.
Net income for Q1 2026 is $2.001 billion, or $4.50 per diluted share.
First quarter net sales were $65.98 billion, an increase of 8.2% from last year.
We had 39.7 million paid executive memberships, up 9.1% from last year.
Our same day delivery services through Instacart and others grew rapidly, surpassing overall digital sales.
AI integration in pharmacy improved our in-stocks to over 98% and boosted margins.
Retail media is an emerging opportunity for Costco, leveraging our existing marketing channels.
We are rolling out new personalization features to improve member engagement and relevance.
Member behavior shows consistent consumption patterns despite slight traffic inconsistencies.
We aim to reverse the slight decline in renewal rates by engaging digitally signed up members.
Net Income
$2.001 billion
growth of 13.6%
Earnings Per Share (EPS)
$4.50 per diluted share
growth of 13.6%
Net Sales
$65.98 billion
+8.2%
Comparable Sales
6.4%
Unchanged
Membership Fee Income
$1.329 billion
+14%