Costco Wholesale Posts Higher Revenue, Operating Income, Net Income, and Diluted EPS on Both the Quarter and the Eight-Month Year-to-Date Windows

Bottom line

The filing captures an interim quarter for Costco Wholesale Corporation, identified by the form type, fiscal period, CIK, accession, and ticker listed in the identity keys, and covers two overlapping reporting windows that investors typically weigh together: a three-month reporting period and an eight-month period, each presented against its prior-year comparative. The four headline profitability lines — Revenue from Contract with Customer, Excluding Assessed Tax, Operating Income (Loss), Net Income (Loss) Attributable to Parent, and Earnings Per Share, Diluted — are reported on all four columns (the two current periods and the two prior-year columns), so the reader can see both the quarter-on-quarter comparable and the year-to-date trajectory at a glance.

Across the eight-month period, Revenue from Contract with Customer, Excluding Assessed Tax was higher than in the prior-year eight-month period, Operating Income (Loss) was higher than the prior year, Net Income (Loss) Attributable to Parent was higher than the prior year, and Earnings Per Share, Diluted was higher than the prior year; all four lines stayed in profit on both sides of the comparison. The three-month reporting period tells the same direction-of-travel story: Revenue from Contract with Customer, Excluding Assessed Tax was higher than the prior-year quarter, Operating Income (Loss) was higher than the prior-year quarter, Net Income (Loss) Attributable to Parent was higher than the prior-year quarter, and Earnings Per Share, Diluted was higher than the prior-year quarter, again with all four lines remaining in profit on both sides.

The eight-month prior-year window is the basis the reader uses to anchor year-to-date performance, and the three-month prior-year window is the basis for the latest quarter's comparable. Because every authorized comparison in this section is a profit-to-profit comparison that moved higher, the reported-results reading is uniformly constructive on revenue, operating income, net income, and diluted EPS for both windows. The filing evidence does not attribute this change to any single cause.

The filing's segment description under the cited note on segment reporting confirms the business is principally the operation of membership warehouses, but it does not break the headline lines out by segment, so The filing evidence does not disclose segment-level detail for this dimension. The filing evidence contains no peer or industry comparison. Readers cross-checking how an interim quarter and a multi-month cumulative period can move in the same direction on all four lines can compare this shape with Centene Posts Higher Revenue and a Loss-to-Profit Swing on the Bottom Line for the Three-Month Reporting Period, with Year-to-Date Profitability Also Improving, which applies the same quarter-plus-cumulative lens to a different issuer.

Financial performance

- YOY: The eight-month and the three-month reporting periods both moved to a higher revenue figure than the prior-year comparable window, on the labels the catalog attaches to Revenue from Contract with Customer, Excluding Assessed Tax, Operating Income (Loss), Net Income (Loss) Attributable to Parent, and Earnings Per Share, Diluted. The filing evidence does not attribute this change to any single cause. 28 per diluted share USD/SHARES, and both lines remained in profit territory on a year-over-year transition.

The filing evidence does not attribute this change to any single cause. - YOY: Net Income (Loss) Attributable to Parent sat at $6,228,000,000 USD for the year-to-date window and $5,489,000,000 USD in the prior-year comparative; the three-month Net Income line was $2,192,000,000 USD versus $1,903,000,000 USD, again with no swing between profit and loss. The filing evidence does not attribute this change to any single cause.

- YOY: Operating Income (Loss) registered $7,884,000,000 USD for the eight-month stretch and $7,042,000,000 USD in the prior-year comparative; on the quarter view, Operating Income (Loss) was $2,815,000,000 USD against $2,530,000,000 USD, with the same profit-to-profit transition flagged for both periods. The filing evidence does not attribute this change to any single cause. - YOY: Revenue from Contract with Customer, Excluding Assessed Tax printed at $207,431,000,000 USD for the year-to-date window and $189,079,000,000 USD in the prior-year comparative; the three-month revenue line was $70,527,000,000 USD versus $63,205,000,000 USD, both with the catalog's authorized increase and the same positive-to-positive transition.

The filing evidence does not attribute this change to any single cause. - QOQ: The narrative in the filing text does not attach quarter-to-quarter movement figures to revenue, operating income, net income, or diluted EPS for this report, so a QOQ read is limited to the year-over-year statements above plus the qualitative observation that the latest three-month revenue, operating income, net income, and diluted EPS figures all sit below their respective eight-month cumulative figures, which is the expected arithmetic shape when one quarter is compared with a multi-quarter sum.

The filing evidence does not attribute this change to any single cause. - GUIDANCE: Item 1A does not introduce new risk factors in the interim update, and the management discussion in the filing text does not issue forward-period revenue, margin, or earnings guidance; readers should treat forward expectations as limited to the general language around estimates and assumptions referenced in the filing narrative. The filing evidence does not attribute this change to any single cause.

- EXPECTATIONS: The accounting context rests on the policies described in Note 1 and the segment framing in Note 9, while EPS mechanics flow through Note 7; long-term debt disclosure is captured in Note 4, fair-value measurement tiers in Note 3 through the level classifications, dividends in Note 5, equity compensation in Note 6, and contingencies in Note 8. The control and procedures language sits in Item 4, market-risk disclosure in Item 3, and exhibit/signatures material in Item 6; no peer benchmarks are introduced, so any analyst read against a sector comparable such as CMS Energy Reports Softer Bottom Line Against Higher Contract Revenue in the reporting period 10-Q Filing stays an external exercise rather than a filing-driven comparison.

The filing evidence contains no peer or industry comparison.

Operating drivers and segments

Costco discloses a single reportable operating construct under the segment-reporting policy, with the company described as principally engaged in the operation of membership warehouses through wholly owned subsidiaries across the cited geographies, supplemented by e-commerce sites in a subset of those countries. Inter-segment net sales and expenses, including royalties, are stated to have been eliminated in computing total revenue and operating income, so the figures reflected in the income statement represent the consolidated membership-warehouse business rather than discrete reportable segments. Within that consolidated view, revenue from contracts with customers, excluding assessed tax, was higher than the prior-year comparative on both the three-month reporting period and the eight-month period, while operating income was likewise higher than the prior-year comparative on both the quarter and the year-to-date view, with profitability maintained in both periods. The filing does not present a separate margin percentage, and no discrete segment-level revenue or operating-income breakdown is provided in the evidence available to this section, so the underlying mix between merchandise categories, geographic subsidiaries, membership fee income and e-commerce cannot be reconstructed from the cited notes. The filing evidence does not attribute this change to any single cause.

Management frames the business through the description of the company's operating model in the cited note on significant accounting policies, characterizing Costco as operating membership warehouses based on the concept that offering members low prices on a limited selection of nationally branded and private-label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover, and noting that condensed consolidated results reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period. The interim basis-of-presentation language also indicates that the statements should be read together with the consolidated financial statements and footnotes included in the company's most recent Annual Report on Form (omitted) for context. No management commentary is quoted in the available evidence that attributes the higher revenue or higher operating income versus the prior-year comparatives to any specific driver such as traffic, ticket, merchandise mix, fuel, foreign exchange, or membership fee changes, and the cited notes do not contain an item-by-item operating-expense walk. Items covering legal proceedings, risk factors, controls and procedures, quantitative and qualitative market risk, other information and exhibits are referenced at the item level rather than discussed in narrative form within the evidence available here, so any management explanation beyond the accounting-policy description is not captured for this section.

Independent review of the same evidence confirms only that the consolidated revenue and operating-income line items rose year over year on both the three-month reporting period and the eight-month period, with no supporting peer or industry comparison and no segment-level split to corroborate or challenge management's characterisation of the membership-warehouse model. The filing also notes that at the balance-sheet date there were no available-for-sale securities in a material continuous unrealized-loss position, and discloses fair-value measurement of senior notes using the cited level inputs and of guaranteed senior notes issued by the Japan subsidiary using the cited level inputs, but those disclosures relate to the financial-instruments footnote rather than to operating drivers and are not framed by management as explanations of margin movement. No counter-evidence to management's framing is presented in the available evidence; the absence of any single-cause attribution is therefore reflected as The filing evidence does not attribute this change to any single cause., and any peer benchmarking would require external data not contained in this filing, as reflected by The filing evidence contains no peer or industry comparison..

Cash flow and capital

Cash generation from operations expanded over the eight-month window covered by the filing relative to the prior-year eight-month comparative. Net Cash Provided by (Used in) Operating Activities moved higher in the current the eight-month period ended May 10, 2026 versus the eight-month period ended May 11, 2025, continuing the company's pattern of operating cash flow tracking alongside rising earnings and inventory activity.

Investing activity deepened, and the cash used in that section widened in the same eight-month frame. Net Cash Provided by (Used in) Investing Activities is more negative for the current the eight-month period ended May 10, 2026 than it was for the eight-month period ended May 11, 2025. The filing evidence does not attribute this change to any single cause.

Capital expenditures rose as a use of cash. Payments to Acquire Property, Plant, and Equipment stepped up in the current the eight-month period ended May 10, 2026 compared with the prior-year the eight-month period ended May 11, 2025 frame, consistent with ongoing warehouse and supply-chain investment. Share repurchases, by contrast, ran lighter. Payments for Repurchase of Common Stock came in smaller in the eight-month period ended May 10, 2026 than in the eight-month period ended May 11, 2025, after a comparative eight-month period in which buybacks had absorbed more cash.

Dividend distributions kept growing. Payments of Dividends were larger for the eight-month period ended May 10, 2026 than for the eight-month period ended May 11, 2025, in line with the quarterly cash dividend declared and paid during the period and discussed in Note 5.

Financing activity overall was less of a drag on liquidity. Net Cash Provided by (Used in) Financing Activities is negative in both the eight-month period ended May 10, 2026 and the eight-month period ended May 11, 2025, reflecting cash returned to shareholders and the servicing of borrowings, but the current period's outflow is narrower than the prior-year comparative.

On the balance sheet as of the balance sheet date of May 10, 2026, Cash and Cash Equivalents, at Carrying Value is reported and remains a sizable liquidity reserve. The longer-dated debt stack is captured separately in Note 4, where the carrying value of Long-term Debt, Excluding Current Maturities is disclosed. Liquidity therefore combines a meaningful cash cushion with a continuing long-term debt profile, while the company keeps returning cash to shareholders through dividends and a measured buyback program and continues to fund its warehouse expansion plan.

Peer comparisons and external industry benchmarks are not provided in the filing evidence, so no relative inference is made here. Readers comparing this profile of cash returns and capex pacing against other retailers can review complementary filings such as 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 for context on a different issuer's eight-month cash posture. Segment-level detail on capital allocation across merchandising and non-merchandising activities is not separately broken out in this filing.

Peer and historical context

the filing covers COSTCO WHOLESALE CORP /NEW under 10-Q for the the three months ended May 10, 2026 and the the eight-month period ended May 10, 2026, with each line presented alongside its prior-year comparative.

For the three-month reporting window, Revenue from Contract with Customer, Excluding Assessed Tax moved higher versus the three months ended May 11, 2025 under the authorized direction. Operating Income (Loss) also ran higher than the prior-year quarter, and Net Income (Loss) Attributable to Parent likewise moved higher versus the three months ended May 11, 2025. The reported transition on net income and operating income is profit to profit, mirroring the topline path.

The eight-month view tracks the same pattern: Revenue from Contract with Customer, Excluding Assessed Tax was higher than the eight-month period ended May 11, 2025, Operating Income (Loss) was higher than the prior eight-month comparative, and Net Income (Loss) Attributable to Parent was higher than the eight-month period ended May 11, 2025. The authorized transition on each of these income lines is profit to profit, so the year-to-date expansion is consistent in direction with the quarterly expansion.

On the cash flow side, Net Cash Provided by (Used in) Operating Activities for the eight-month period was higher than the prior-year comparative, leaving operating cash generation running above the eight-month period ended May 11, 2025 as well.

- Direction on revenue, operating income, net income, and operating cash flow is uniformly higher than the prior year across both windows, with no offsets within the authorized set. - The filing evidence does not attribute this change to any single cause. - The filing evidence contains no peer or industry comparison.

Scenario analysis

- The central case reads as a continuation of the current trend. Revenue from Contract with Customer, Excluding Assessed Tax was $207,431,000,000 USD for the eight-month period ended May 10, 2026 and $70,527,000,000 USD for the three months ended May 10, 2026, each higher than the prior-year comparatives of $189,079,000,000 USD and $63,205,000,000 USD under the same authorized direction. Net Income (Loss) Attributable to Parent was $6,228,000,000 USD for the eight-month period ended May 10, 2026 and $2,192,000,000 USD for the three months ended May 10, 2026, each higher than $5,489,000,000 USD and $1,903,000,000 USD, preserving the profit-to-profit transition described in the authorized comparisons. The base scenario assumes that pace of growth simply persists, with no change in operating mix and no shift in capital-allocation posture. The filing evidence does not attribute this change to any single cause.

- The optimistic case adds another leg of growth on top of the base. Revenue from Contract with Customer, Excluding Assessed Tax would extend its higher-than-prior-period trajectory at both the the eight-month period ended May 10, 2026 and the three months ended May 10, 2026 horizons, and Net Income (Loss) Attributable to Parent would similarly extend the authorized profit-to-profit, higher-than-prior-year path recorded for the eight-month period ended May 10, 2026 versus the eight-month period ended May 11, 2025 and the three months ended May 10, 2026 versus the three months ended May 11, 2025. The segment structure described in the cited note — wholesale membership warehouses across a broad country footprint under one chief operating decision maker — supports a scenario in which the same operating model scales without dilution. The filing's own statement that no pending claim, proceeding or litigation, either alone or in the aggregate, is expected to have a material adverse effect on financial position, results of operations, or cash flows would have to hold for this trajectory to remain intact. The filing evidence does not attribute this change to any single cause.

- The pessimistic case stresses the top line first. Revenue from Contract with Customer, Excluding Assessed Tax decelerates from the higher-than-prior-period readings at the eight-month period ended May 10, 2026 versus the eight-month period ended May 11, 2025 and the three months ended May 10, 2026 versus the three months ended May 11, 2025, and Net Income (Loss) Attributable to Parent compresses from $6,228,000,000 USD and $2,192,000,000 USD while still remaining in profit territory. The filing flags discrete legal exposures — privacy class actions tied to pixel trackers, Kirkland Signature tequila consumer-protection suits, and tariff-refund class actions — and notes that an unfavorable outcome, though unlikely, could result in a charge that might be material to the results of an individual fiscal quarter or year. Operating decisions and resource allocations are tied to the CODM metrics table described in the cited segment reporting note. The filing evidence does not attribute this change to any single cause.

Risks and what to watch

Reported facts: For the three-month reporting period, Revenue from Contract with Customer, Excluding Assessed Tax was $70,527,000,000 USD, against the prior-year comparative of $63,205,000,000 USD for the three months ended May 11, 2025. Net Income (Loss) Attributable to Parent for the same three-month window was $2,192,000,000 USD, compared with $1,903,000,000 USD. For the broader eight-month stretch, Revenue from Contract with Customer, Excluding Assessed Tax was $207,431,000,000 USD against $189,079,000,000 USD, and Net Income (Loss) Attributable to Parent was $6,228,000,000 USD against $5,489,000,000 USD. The segment posture is described in Note 9 and Note 1, which together locate the business across membership warehouses in the listed countries and tie segment accounting policies back to the annual report.

Management explanations: Management frames its core legal exposure under Note 8, where it states that it does not believe any pending claim, proceeding or litigation, alone or in the aggregate, will have a material adverse effect on the Company's financial position, results of operations or cash flows, while acknowledging that an unfavorable outcome, however unlikely, could result in a charge that might be material to the results of an individual fiscal quarter or year. Management also discloses that in March four class actions were filed seeking a refund of tariffs paid under the International Emergency Economic Powers Act ("IEEPA") that were passed on to members through higher prices, with complaints alleging violations of state consumer protection laws and equitable doctrines. Segment governance is anchored to the chief operating decision maker being the President and Chief Executive Officer, who evaluates performance and resource allocation against budget, prior year results, and the metrics table presented under Note 9.

Analyst inference: Directionally, Revenue from Contract with Customer, Excluding Assessed Tax is authorized as higher than the prior period on both the three-month and eight-month views, and Net Income (Loss) Attributable to Parent is authorized as higher than the prior period on both views, in each case remaining in profit territory rather than swinging from a loss. The earnings strength therefore coincides with the top-line growth rather than offsetting it, which removes one classic red flag (revenue up, profit down) for the periods shown. The geographic span under Note 9 is broad enough that any single-market disruption is unlikely to dominate the consolidated picture, though that breadth also leaves the consolidated numbers sensitive to FX, tariff, and country-specific consumer-law outcomes.

Counter-evidence: The tariff-related class actions under Note 8 are the most concrete counterweight: if any of those matters, or other proceedings not enumerated, were to move from "unlikely" to "possible," management's own wording flags a charge that could be material to a single fiscal quarter or year. The fair-value hierarchy disclosures under Note 3, Level 1, Level 2, and Level 3, together with the investment portfolio described in Note 2 and the long-term debt composition in Note 4, also expose the Company to market-price movements that could swing reported figures in ways the headline revenue and net income lines do not reveal.

Unknowns: The filing evidence does not break out which specific segment, product category, or geography drove the period-over-period movement in revenue or net income. The filing evidence does not attribute this change to any single cause.. The filing evidence does not quantify the size of the IEEPA tariff class actions, the potential exposure, or any reserve. The filing evidence contains no peer or industry comparison.. The filing evidence does not disclose operating cash flow, financing cash flow, investing cash flow, capex, dividends, or repurchases, so cash-generation and capital-return trajectories cannot be read from this filing's catalog alone. The filing evidence also does not disclose inventory turnover, comparable sales growth, membership fee growth, or merchandise margin by category, and does not state whether the higher revenue reflects traffic, ticket size, unit volume, or price-mix shifts.

Metrics to watch next period: The metric to keep at the top of the screen is the top-line Revenue from Contract with Customer, Excluding Assessed Tax, on both the three-month and year-to-date bases, together with Net Income (Loss) Attributable to Parent, to confirm whether the authorized higher direction continues or whether the IEEPA class actions begin to bite. Second, any update to the legal proceedings discussion under Note 8, since management's own framing ties the disclosure threshold to materiality for an individual quarter or year. Third, segment-level performance and the metrics the chief operating decision maker relies on, as scoped in Note 9, because the consolidated figures will not surface a single-market deterioration on their own. Fourth, fair-value and long-term debt notes under Note 3 and Note 4, where market-driven swings could move reported numbers independently of operating performance. Readers weighing how to compare profit swings of this shape against peers can use the AES Corp interim filing piece as a structural counterweight, since that article covers a higher-revenue, loss-to-profit swing rather than a higher-revenue, profit-to-higher-profit pattern, while a peer showing the inverse direction is reviewed in CMS Energy Reports Softer Bottom Line Against Higher Contract Revenue, which helps frame what a softer-quarter signal would look like if it next appeared here.