Costco Wholesale Corporation

How Costco makes money

Costco operates membership warehouses selling groceries, general merchandise, gasoline and other products. It earns revenue from merchandise sales and membership fees. At the November 10 update it operated 945 warehouses worldwide.

Latest financial record

Fiscal 2026 cash after capital spending was $9.382 billion, calculated from the audited annual report. Membership fee growth reflected new members, upgrades and the earlier U.S. and Canadian fee increase. Faster inventory turnover and improved supplier payment terms also supported operating cash.

In the 16-week fourth quarter ended August 30, net sales were $93.9 billion, up from $84.4 billion. Net income rose to $3.0 billion from $2.6 billion. The quarter included a nonrecurring benefit of $0.15 per diluted share from tariff refunds, after partial reinvestment in member value.

Cash, debt and expansion

At August 30, cash and cash equivalents were $20.207 billion and short-term investments $1.094 billion, together $21.301 billion. The equivalent combined balance a year earlier was $15.284 billion. Cash equivalents included unsettled card receipts, which generally settle within four days.

Debt had a carrying value of $6.162 billion, including a $2.248 billion current portion. Principal maturities scheduled for fiscal 2027 total $2.25 billion.

Costco plans approximately $7.5 billion in fiscal 2027 capital spending and up to 33 warehouse openings, including five relocations. Fiscal 2026 spending was $6.435 billion, with 28 openings including three relocations.

November special dividend and buyback

On November 10, the board declared a special cash dividend of $30 per share, approximately $13.3 billion in total. It is payable December 4, 2026, to shareholders of record at the close of November 24.

A new authorization permits up to $4 billion of share repurchases through November 2030. It replaces the 2023 authorization of the same size, under which $3.1 billion had been purchased.

Our analysis of the special dividend and cash generation compares the payout with annual cash after investment and the accumulated balance.