Costco Wholesale (COST) Financials

Costco Wholesale continued to deliver strong top-line growth and steady profitability in Q2 fiscal 2026, while maintaining a very healthy cash position and conservative balance sheet. Over the last four years, the company has shown a consistent pattern of rising revenue, resilient earnings, and substantial operating cash flow, even as it keeps spending heavily on stores, distribution capacity, dividends, and buybacks.

• Revenue has climbed consistently over the multi-year period, reaching $69.6 billion in Q2 2026 versus $57.8 billion in Q1 2024 and $50.4 billion in Q1 2023.
• Quarterly net income remains strong at $2.0 billion in Q2 2026, up modestly from $2.0 billion in Q1 2026 and well above the $1.8 billion to $1.9 billion range seen a year earlier.
• Operating cash flow was excellent in Q2 2026 at $3.0 billion, showing Costco continues to convert earnings into cash effectively.
• The company ended Q2 2026 with $18.2 billion in cash and short-term investments, giving it plenty of liquidity.
• Retained earnings have steadily grown to $25.1 billion in Q2 2026 from $18.7 billion in Q1 2025, reflecting accumulated profitability.
• Gross profit has expanded over time alongside revenue, showing the business is scaling well despite Costco’s low-margin model.
• The company continues to produce meaningful free cash after capital spending, supporting dividends and share repurchases.
• Capital spending remains elevated, with $1.3 billion spent on property and equipment in Q2 2026, consistent with Costco’s ongoing store and infrastructure investments.
• Dividend policy appears stable, with quarterly dividends per share holding at $1.30 in the latest reported periods.
• Share count has been fairly steady, suggesting buybacks are being used more as a capital-return tool than as a major EPS driver.
• Operating margin remains thin, with Q2 2026 operating income of $2.6 billion on $69.6 billion in revenue, underscoring Costco’s low-margin retail model.
• Current liabilities remain large at $40.8 billion, which is normal for a retailer but still far higher than current assets on a gross basis.
• Accounts payable and other short-term obligations are substantial, so Costco depends on very efficient working-capital management.
• AOCI remains negative at -$1.6 billion, and long-term debt, while manageable, still sits near $5.7 billion.

Bottom line: Costco’s financial profile remains exceptionally strong for a retailer. Revenue growth has been steady, profits are durable, and cash generation is robust. The main watch item is margin pressure, since the company’s model prioritizes traffic and membership value over fat operating margins. Even so, the balance sheet and cash flow trends look solid and supportive of long-term shareholder returns.