Costco Reports Strong Q4 2025 Earnings Amid Inflationary Pressures

Costco Wholesale (NASDAQ: COST) reported its fiscal fourth-quarter earnings on September 25, 2025, surpassing Wall Street's expectations with earnings per share (EPS) of $5.87 and revenue of $86.16 billion. Analysts had anticipated an EPS of $5.80 and revenue of $86.01 billion. The company's net income for the quarter rose to $2.61 billion, up from $2.35 billion in the same period last year. Comparable sales in the U.S. increased by 6.4%, while e-commerce sales surged by 13.5% year-over-year.

Quartz

Costco's membership model continues to be a significant driver of revenue, with membership fees contributing $1.72 billion in the reported quarter, reflecting a 14% increase year-over-year. The company raised its membership fees last fall for the first time since 2017, now charging $65 for Gold Star members and $130 for Executive members. This fee increase, coupled with a growing membership base—nearly half of new signups are under 40—has bolstered Costco's financial performance.

CNBC

Costco's Chief Financial Officer, Gary Millerchip, noted that the company has adapted its merchandise assortment to mitigate the impact of tariffs, which affect about a third of its U.S. sales. The retailer has increased its procurement of U.S.-made items and focused on categories with less tariff exposure, such as health and beauty products. Despite these challenges, Costco has maintained competitive pricing, particularly on essentials like butter and eggs, which has attracted cost-conscious consumers.

CNBC

Following the earnings announcement, Costco's shares experienced a slight decline of less than 1% in after-hours trading. Year-to-date, the stock is up approximately 3.8%, but it remains about 13% below its 52-week high of $1,078. Analysts maintain a generally positive outlook on Costco's stock, with price targets ranging from $1,070 to $1,205, indicating potential upside from current levels.

Costco (COST) Q4 2025 Earnings: Revenue $86.16B, EPS $5.87

Despite the strong earnings, some analysts express caution regarding Costco's high valuation, which currently sits at a trailing price-to-earnings ratio of about 54. Concerns have been raised about the sustainability of Costco's growth in a potentially more inflationary environment, as well as the impact of rising costs on consumer spending. Critics note that while Costco has performed well, it faces challenges in maintaining its momentum amid broader economic uncertainties.

Quartz

• “Costco appears to be reinvesting part of last year’s membership fee increase into sharper pricing for members while allowing the remainder to flow through to the bottom line, a win-win for both members and shareholders,” — Arun Sundaram, Analyst, CFRA Research

The Globe and Mail (Toronto)

• “Importantly, in a potentially more inflationary environment, the club model’s value proposition and scale advantage could become even more compelling to consumers.” — Raymond James Analysts

Quartz

Costco's fiscal Q4 2025 results demonstrate resilience in the face of inflation and tariff pressures, driven by a robust membership model and strategic adjustments in its product offerings. While the company continues to attract consumers seeking value, it must navigate potential challenges related to its high valuation and the broader economic landscape as it moves into the next fiscal year.

The Globe and Mail (Toronto)