Costco Wholesale Posts Higher Revenue, Operating Income, Net Income, and Diluted EPS on Both the Quarter and Six-Month Year-to-Date Views in Form 10-Q

Bottom line

For the three-month reporting period covered by 10-Q filed by COSTCO WHOLESALE CORP /NEW under accession 0000909832-26-000029, the company posted higher revenue, higher operating income, higher net income, and higher diluted earnings per share than the prior-year quarter. Diluted Earnings Per Share was $4.58 per diluted share USD/SHARES for the three months ended February 15, 2026, compared with $4.02 per diluted share USD/SHARES for the three months ended February 16, 2025, moving from profit to profit at a higher level. Net Income Attributable to Parent was $2,035,000,000 USD for the three months ended February 15, 2026, compared with $1,788,000,000 USD for the three months ended February 16, 2025, again a profit-to-profit transition at a higher level. Operating Income was $2,606,000,000 USD for the three months ended February 15, 2026, compared with $2,316,000,000 USD for the three months ended February 16, 2025, a profit-to-profit transition at a higher level. Revenue from Contract with Customer, Excluding Assessed Tax was $69,597,000,000 USD for the three months ended February 15, 2026, compared with $63,723,000,000 USD for the three months ended February 16, 2025, higher in both periods. Revenues were also reported as $69,597,000,000 USD for the three months ended February 15, 2026, compared with $63,723,000,000 USD for the three months ended February 16, 2025, higher in both periods.

On the six-month year-to-date basis, the same four lines moved higher as well. Diluted Earnings Per Share was $9.08 per diluted share USD/SHARES for the six months ended February 15, 2026, compared with $8.06 per diluted share USD/SHARES for the six months ended February 16, 2025, a profit-to-profit transition at a higher level. Net Income Attributable to Parent was $4,036,000,000 USD for the six months ended February 15, 2026, compared with $3,586,000,000 USD for the six months ended February 16, 2025, a profit-to-profit transition at a higher level. Operating Income was $5,069,000,000 USD for the six months ended February 15, 2026, compared with $4,512,000,000 USD for the six months ended February 16, 2025, a profit-to-profit transition at a higher level. Revenue from Contract with Customer, Excluding Assessed Tax was $136,904,000,000 USD for the six months ended February 15, 2026, compared with $125,874,000,000 USD for the six months ended February 16, 2025, higher in both periods. Revenues were also reported as $136,904,000,000 USD for the six months ended February 15, 2026, compared with $125,874,000,000 USD for the six months ended February 16, 2025, higher in both periods.

REPORTED RESULTS are read directly from the condensed consolidated statements of income included in the filing; the prior-year comparatives are taken from the same columns of the prior-year condensed consolidated statements. The filing evidence does not attribute this change to any single cause.

The filing describes COSTCO WHOLESALE CORP /NEW as principally engaged, through wholly-owned subsidiaries, in operating membership warehouses and e-commerce sites in multiple countries, but the source narrative attached here does not contain a management commentary section that attributes the quarter or year-to-date changes to specific operating drivers. The filing evidence does not attribute this change to any single cause.

No independent analyst inference is added; the direction statements above are the only year-over-year relations the filing evidence authorizes for these dimensions.

None beyond the prior-year comparatives already cited; the filing presents these four lines as higher in both the quarter and the six-month windows without offsetting disclosures in the attached narrative.

Segment-level breakdowns for revenue and operating income are not included in the source narrative; The filing evidence does not disclose segment-level detail for this dimension. Peer or industry comparison data are not included in the attached source; The filing evidence contains no peer or industry comparison. Specific operational drivers behind the year-over-year changes are not stated in the attached source; The filing evidence does not attribute this change to any single cause.

Financial performance

- For the three months ended February 15, 2026, Revenue from Contract with Customer, Excluding Assessed Tax reached $69,597,000,000 USD, higher than $63,723,000,000 USD reported for the three months ended February 16, 2025. The companion Revenues line shows $69,597,000,000 USD versus $63,723,000,000 USD over the same windows, moving in the same direction. - For the six months ended February 15, 2026, Revenue from Contract with Customer, Excluding Assessed Tax came in at $136,904,000,000 USD, above $125,874,000,000 USD for the six months ended February 16, 2025, with Revenues tracking at $136,904,000,000 USD against $125,874,000,000 USD.

- Reported facts: Operating Income (Loss) for the three months ended February 15, 2026 stood at $2,606,000,000 USD versus $2,316,000,000 USD, and the six-month view was $5,069,000,000 USD against $4,512,000,000 USD. On both windows the period sits above the prior-year comparable, with both periods in profit. - Reported facts: Net Income (Loss) Attributable to Parent measured $2,035,000,000 USD for the three-month window and $4,036,000,000 USD for the six-month window, ahead of $1,788,000,000 USD and $3,586,000,000 USD, respectively.

Both the current and prior periods remain in profit. 06 per diluted share USD/SHARES. Both periods remain profitable on a per-share basis.

- Accounting context: Note 1 covers Description of Business and significant accounting policies, including the basis of presentation that supports the prior-year comparatives carried at restated or equivalent values across the two revenue lines; Note 7 frames the EPS reconciliation between basic and diluted weighted-average share counts using the treasury stock method; and Note 9 restates Segment Reporting with Costco operating as a single reportable segment, so the revenue and operating-income movements shown above are entity-wide rather than split across operating segments.

- Management explanations: Items in Item 4 confirm the company's disclosure controls remained effective during the period, and Note 8 discloses ongoing legal proceedings under Commitments and Contingencies, with the company stating any accrued amount to date is immaterial and additional possible losses cannot be reasonably estimated at this time. - Analyst inference: The reported figures show the topline, operating-income, net-income, and diluted-EPS lines all stepped up versus the prior year on both the three- and six-month views, with the margin-level movements between periods left to be derived from the audited numbers themselves.

The filing evidence does not attribute this change to any single cause. - Counter-evidence and unknowns: The filings do not break out revenue, operating income, or EPS by any segment or geography beyond the single-segment presentation in Note 9, and no peer comparison or industry benchmark is provided alongside this report. The filing evidence contains no peer or industry comparison.

The filing evidence does not disclose segment-level detail for this dimension. - Guidance expectations: Management commentary filed with 10-Q for period-ended-2026-02-15 (accession 0000909832-26-000029, CIK 0000909832, ticker COST, COSTCO WHOLESALE CORP /NEW) does not include quantitative forward-period guidance on revenue or EPS; legal-proceedings disclosure in Note 8 notes only that the loss cannot currently be estimated.

Operating drivers and segments

- The condensed consolidated statements of income present a single operating segment result, with the company describing itself as principally engaged in the operation of membership warehouses through wholly owned subsidiaries in the United States, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Sweden, Iceland and New Zealand, while e-commerce sites are operated in a narrower subset of those countries. - Revenue from Contract with Customer, Excluding Assessed Tax was $63,723,000,000 USD for the three months ended February 16, 2025 and $69,597,000,000 USD for the three months ended February 15, 2026, moving higher on an authorized year-over-year basis at the quarter. - Revenue from Contract with Customer, Excluding Assessed Tax was $125,874,000,000 USD for the six months ended February 16, 2025 and $136,904,000,000 USD for the six months ended February 15, 2026, moving higher on an authorized year-over-year basis at the six-month window. - Operating Income (Loss) was $2,316,000,000 USD for the three months ended February 16, 2025 and $2,606,000,000 USD for the three months ended February 15, 2026, with an authorized year-over-year increase in the three-month period. - Operating Income (Loss) was $4,512,000,000 USD for the six months ended February 16, 2025 and $5,069,000,000 USD for the six months ended February 15, 2026, with an authorized year-over-year increase in the six-month period. - The filing also reports a parallel Revenues line, $63,723,000,000 USD versus $69,597,000,000 USD for the quarter and $125,874,000,000 USD versus $136,904,000,000 USD for the half year, each authorized as higher than the prior period. - No segment-level operating income, segment-level revenue split, or margin disaggregation is presented, so the period-over-period movement cannot be allocated to individual merchandise categories, geographic regions, or the membership-fee stream versus core merchandise sales on the basis of the filing evidence. The filing evidence contains no peer or industry comparison.

- Management frames the business around the membership-warehouse concept, with low prices on a limited selection of nationally-branded and private-label products positioned to drive high sales volumes and rapid inventory turnover across the warehouse and e-commerce footprint described in Note 1 and Note 9. - The filings and notes do not contain a narrative discussion of operating-cost pressures, traffic trends, ticket size, foreign-exchange effects, or any other qualitative driver of the quarter-over-quarter or half-year-over-half-year change in revenue or operating income. The filing evidence does not attribute this change to any single cause. - Because no management commentary explains the year-over-year movement in either the top line or operating income, the only defensible read is that both lines rose on an authorized basis while the reasons given in the filing are limited to the high-level operating description. - Cross-checked against interim reports that describe the opposite direction, the contrast highlights how uniform the limited company-provided framing is for this section. A useful comparator is AES Corp interim filing shows higher revenue and a loss-to-profit swing on net income and diluted EPS for both the quarter and the six-month year-to-date period, while capital and dividend outflows also stepped up., where management supplied richer segment-level commentary than what is available here.

Cash flow and capital

COSTCO WHOLESALE CORP /NEW (the entity behind COST) files its interim results on Form 10-Q for the period covered by period-ended-2026-02-15 under accession 0000909832-26-000029. The six-month year-to-date window identified as the six months ended February 15, 2026 is the reference frame for the cash-flow and capital-allocation discussion that follows, with the six months ended February 16, 2025 supplying the comparative baseline and the balance sheet date of February 15, 2026 marking the balance-sheet date on which cash and equivalents are reported.

REPORTED FACTS

Operating cash generation for the six months ended the six months ended February 15, 2026 is captured at $7,684,000,000 USD, against the prior-year comparative of $6,008,000,000 USD. Investing activity shows a use of cash of -$2,568,000,000 USD for the current six-month window, compared with -$2,007,000,000 USD in the prior-year period. Financing activity is a use of cash of -$1,897,000,000 USD versus -$1,434,000,000 USD in the prior year. The period-end cash position is $17,383,000,000 USD as of the balance sheet date of February 15, 2026.

Capital expenditures, recorded as Payments to Acquire Property, Plant, and Equipment, are reported at $2,815,000,000 USD for the six months ended February 15, 2026 and at $2,401,000,000 USD for the six months ended February 16, 2025. Shareholder returns in the form of Payments of Dividends total $1,154,000,000 USD for the current window and $515,000,000 USD a year earlier, with Payments for Repurchase of Common Stock at $419,000,000 USD versus $412,000,000 USD.

MANAGEMENT EXPLANATIONS

The narrative surrounding the dividend cadence is anchored in the cited dividend note (Note 5), which sets out the per-share quarterly declaration underlying the $1,154,000,000 figure. Long-term debt, whose carrying value is detailed in the cited debt note (Note 4) and whose fair value is referenced through the Level 3 tier discussion, sits alongside the recurring fair-value framework in the cited fair-value note (Note 3) and the investment note (Note 2) to provide context for the cash held at period end. Segment-level granularity on capital allocation is not separately disclosed; per the cited basis-of-reporting note (Note 9), the company reports on a consolidated basis only. The filing evidence does not disclose segment-level detail for this dimension.

ANALYST INFERENCE

On the comparative axes the filing evidence authorises four directional reads. Operating cash flow for the six months ended February 15, 2026 is higher than the prior-year baseline the six months ended February 16, 2025. Investing outflows for the six months ended February 15, 2026 are smaller than the prior-year outflows, indicating less cash absorbed by investing activity than a year ago. Financing outflows for the six months ended February 15, 2026 are larger than the prior-year outflows, indicating a heavier net return of capital to financing counterparties than the year before. Capital expenditures, dividend payments, and share-repurchase payments for the six months ended February 15, 2026 are each higher than their respective prior-year comparatives, signalling continued reinvestment in property and equipment alongside a stepped-up pace of cash returned to shareholders. The filing evidence does not attribute this change to any single cause.

COUNTER-EVIDENCE

No peer or industry benchmark is embedded in the filing for these cash-flow and capital-allocation lines; readers comparing COST's outlay pattern to other warehouse-club or retail issuers would need to look outside the cited document. The filing evidence contains no peer or industry comparison. Pending legal matters described in Note 8 are not quantified in a way that affects the cash position reported at the balance sheet date of February 15, 2026, and no accrual beyond immaterial amounts is recorded.

UNKNOWNS

A clean read on the split between repurchase-driven and dividend-driven shareholder returns versus reinvestment is constrained by the totals alone; the granular mix between regular dividends, special dividends, and repurchase activity is not separately tabulated in the cited catalog. The pace of working-capital movement embedded inside $7,684,000,000 is also not isolated in the cited evidence.

Peer and historical context

Costco Wholesale Corp /New (the Company) reports under 10-Q for period-ended-2026-02-15, filed under accession 0000909832-26-000029 with ticker COST (CIK 0000909832). Because the Company's membership warehouse business spans the U.S., Canada, Mexico, Japan, the U.K., Korea, Australia, Taiwan, China, Spain, France, Sweden, Iceland and New Zealand, the segment view in Note 9 is geographically organized and is reviewed by the CODM on the same operating-income basis reported in the condensed consolidated statement of income.

On a year-over-year basis, the half-year period the six months ended February 15, 2026 shows revenue, operating income, and net income each higher than the prior-year comparative the six months ended February 16, 2025. The three-month period the three months ended February 15, 2026 likewise shows revenue, operating income, and net income each higher than the prior-year comparative the three months ended February 16, 2025, and diluted EPS rose on both windows. The Company's statements present two parallel revenue presentations for the same postings — $136,904,000,000 vs $125,874,000,000 and $69,597,000,000 vs $63,723,000,000 under the contract-with-customer heading, alongside $136,904,000,000 vs $125,874,000,000 and $69,597,000,000 vs $63,723,000,000 under a total revenues heading — and both series move higher versus their respective prior-year comparatives.

Operating profitability moves with the top line: $5,069,000,000 sits above $4,512,000,000, and $2,606,000,000 sits above $2,316,000,000. The bottom line tracks that pattern, with $4,036,000,000 above $3,586,000,000 and $2,035,000,000 above $1,788,000,000. Net cash from operations strengthened as well: $7,684,000,000 is higher than $6,008,000,000 across the six-month window.

Because the filing carries only the Company's own results, The filing evidence contains no peer or industry comparison.; readers should not read the year-over-year gains as evidence of share gain or relative outperformance against any other warehouse-club, mass-merchant, or grocery operator, and no industry benchmark is implied. The filing evidence does not attribute this change to any single cause.

For cross-issuer context on how other recent quarterly filers line up against their own prior-year comparatives, the most directly comparable peer-shaped pieces in this coverage set are SMITH A O CORP (AOS) Reports Softer Revenue, Operating Income, Net Income, and Diluted EPS on Both the Quarter and Six-Month Year-to-Date Views in Form (Accession and Costco Wholesale Posts Higher Revenue, Operating Income, Net Income, and Diluted EPS on Both the Quarter and the Eight-Month Year-to-Date Windows, each of which uses the same revenue/operating-income/net-income/EPS lens on its issuer.

LINKS:

Scenario analysis

In the central case, Costco's top line and earnings track the directional pattern authorized by the filing: Revenue from Contract with Customer, Excluding Assessed Tax for the three months ended February 15, 2026 is higher than the three months ended February 16, 2025, the same revenue line for the six months ended February 15, 2026 is higher than the six months ended February 16, 2025, and Revenues for both the three months ended February 15, 2026 and the six months ended February 15, 2026 likewise sit above their prior-year comparables. On the bottom line, Net Income (Loss) Attributable to Parent for the three months ended February 15, 2026 is higher than the three months ended February 16, 2025 and for the six months ended February 15, 2026 is higher than the six months ended February 16, 2025, with the diluted share metric moving in the same direction across both windows. The base case treats the membership-warehouse model and the segment footprint described in Note 9 as continuing to generate the combination of higher revenue, higher operating income, and higher net income that the authorized comparisons imply, without leaning on a specific driver story that the filing evidence does not record.

The constructive case layers additional favorable outcomes on top of the base pattern: Revenue from Contract with Customer, Excluding Assessed Tax for the six months ended February 15, 2026 of $136,904,000,000 USD, compared with $125,874,000,000 USD for the six months ended February 16, 2025, accompanied by Revenues for the six months ended February 15, 2026 of $136,904,000,000 USD against $125,874,000,000 USD for the six months ended February 16, 2025. Net Income (Loss) Attributable to Parent for the six months ended February 15, 2026 of $4,036,000,000 USD versus $3,586,000,000 USD for the six months ended February 16, 2025 reinforces the picture, and the quarter view of Net Income (Loss) Attributable to Parent of $2,035,000,000 USD against $1,788,000,000 USD for the three months ended February 16, 2025 lines up with the higher diluted earnings per share comparison for the three months ended February 15, 2026 relative to the three months ended February 16, 2025. This scenario assumes the prior trends simply continue; it does not assert what specifically lifts results, and where the filing does not assign credit for the directional changes, the writer declines to do so here as well, marking such gaps with The filing evidence does not attribute this change to any single cause. rather than improvising a cause.

The cautious case reads the same authorized comparisons but stresses risks: Revenue from Contract with Customer, Excluding Assessed Tax for the three months ended February 15, 2026 of $69,597,000,000 USD against $63,723,000,000 USD for the three months ended February 16, 2025, paired with Revenues for the three months ended February 15, 2026 of $69,597,000,000 USD against $63,723,000,000 USD for the three months ended February 16, 2025, could soften if consumer spending tightens, even though the filing authorizes the higher direction. Litigation exposure, including the pixel-tracker class actions and the Kirkland Signature tequila class actions referenced in the legal-proceedings discussion, plus the False Claims Act investigation described in Note 8, could pressure results, although management's view is that none, alone or in aggregate, will have a material adverse effect. Operating Income (Loss) for the six months ended February 15, 2026 versus the six months ended February 16, 2025 and Net Income (Loss) Attributable to Parent for the six months ended February 15, 2026 of $4,036,000,000 USD against $3,586,000,000 USD for the six months ended February 16, 2025 would be the lines most exposed if momentum stalls. The contrast with a softer peer window, such as the SMITH A O CORP (AOS) Reports Softer Revenue, Operating Income, Net Income, and Diluted EPS on Both the Quarter and Six-Month Year-to-Date Views snapshot, illustrates the alternative path. The filing evidence contains no peer or industry comparison specific to Costco, so the cross-reference is contextual only: The filing evidence contains no peer or industry comparison..

Risks and what to watch

- Reported legal exposures sit across two named matters, both still unresolved. One centers on allegations that Kirkland Signature tequilas labeled as agave-derived contain alcohol from non-agave sugars, and the other centers on a government False Claims Act investigation into whether the Company presented or caused to be presented false claims to the federal government for payment relating to prescription medications. Management has stated that it does not believe any pending claim, proceeding or litigation, alone or in the aggregate, will have a material adverse effect on financial position, results of operations or cash flows, but it has acknowledged that an unfavorable outcome, though considered unlikely, could result in a charge that might be material to the results of an individual fiscal quarter or year.

The cited note addressing contingencies and legal proceedings frames the matter, and the same note is the place where any escalation in reserve or settlement would first show up. - Geographic concentration is a structural exposure that does not depend on either legal matter. Per the segment reporting note, the Company operates membership warehouses through wholly owned subsidiaries across a long list of countries, and the CODM evaluates performance and allocates resources using operating income reported in the condensed consolidated statement of income.

A swing in any one country therefore has a path to flow through consolidated results, which means that country-level currency, demand, or regulatory surprises are a direct risk to the figures cited elsewhere in this analysis. - Counter-evidence to the cautious framing above comes from the authorized year-over-year movements rather than from any management rebuttal. Net Income (Loss) Attributable to Parent was $4,036,000,000 USD for the six months ended February 15, 2026 versus $3,586,000,000 USD for the six months ended February 16, 2025, and was $2,035,000,000 USD for the three months ended February 15, 2026 versus $1,788,000,000 USD for the three months ended February 16, 2025, in each case higher than the prior period with a profit-to-profit transition.

Revenue from Contract with Customer, Excluding Assessed Tax was $136,904,000,000 USD for the six months ended February 15, 2026 versus $125,874,000,000 USD for the six months ended February 16, 2025, and was $69,597,000,000 USD for the three months ended February 15, 2026 versus $63,723,000,000 USD for the three months ended February 16, 2025. The alternative revenues line was $136,904,000,000 USD for the six months ended February 15, 2026 versus $125,874,000,000 USD for the six months ended February 16, 2025, and $69,597,000,000 USD for the three months ended February 15, 2026 versus $63,723,000,000 USD for the three months ended February 16, 2025.

The filing evidence does not attribute this change to any single cause. - Unknowns that remain after reading the filing center on whether either legal matter moves from investigation into a quantified reserve, whether any single-country operating income swings materially, and whether the difference between the two revenue lines on the face of the income statement narrows or widens. The filing evidence does not attribute this change to any single cause.

- Metrics to watch next period include the top-line figure (Revenue from Contract with Customer, Excluding Assessed Tax and the alternative Revenues line) for both the quarter and the year-to-date window, Net Income (Loss) Attributable to Parent on the same windows, and any new disclosure under the legal proceedings note that would change the framing above. A reader doing cross-issuer work can pair this view with the AES Corp interim filing shows higher revenue and a loss-to-profit swing on net income and diluted EPS for both the quarter and the six-month year-to-date period, while capital and dividend outflows also stepped up to compare how a loss-to-profit transition differs from the profit-to-profit transition reported here.