May 11

Costco Q3 2025 Earnings Report

Costco reported strong Q3 results with solid top-line growth and rising profitability.

Key Takeaways

Costco delivered a robust third quarter, with revenue reaching $63.21 billion and net income of $1.90 billion, supported by significant e-commerce growth and strong comparable sales across regions.

Revenue rose to $63.21 billion, up from $58.52 billion a year ago.

Net income increased to $1.90 billion, with EPS at $4.28.

E-commerce comparable sales rose 15.7% adjusted for gas and FX.

All major geographic segments showed solid comparable sales growth adjusted for gas and FX.

Total Revenue
$63.2B
Previous year: $58.5B
+8.0%
EPS
$4.28
Previous year: $3.78
+13.2%
U.S. Comp Sales ex-FX/Gas
7.9%
Previous year: 6%
+31.7%
Canada Comp Sales ex-FX/Gas
7.8%
Previous year: 7.4%
+5.4%
Int’l Comp Sales ex-FX/Gas
8.5%
Previous year: 8.5%
+0.0%
Gross Profit
$7.34B
Previous year: $7.34B
+0.0%
Cash and Equivalents
$13.8B
Previous year: $11.5B
+20.3%
Free Cash Flow
$1.94B
Previous year: $1.94B
+0.0%
Total Assets
$75.5B
Previous year: $67.9B
+11.1%

Costco

Costco

Forward Guidance

No formal guidance was issued, but management commentary remains positive on continued sales momentum, particularly in digital and U.S. core business.

Positive Outlook

  • Strong U.S. comparable sales growth
  • E-commerce expansion outpacing physical stores
  • Improved EPS and net income margins
  • Increased membership fees revenue
  • Stable cost control and SG&A management

Challenges Ahead

  • Other income declined versus prior year
  • Interest income down from previous year
  • International sales growth lags U.S.
  • Foreign exchange remains a headwind
  • Capex remains elevated with ongoing warehouse expansion