Costco reports strong Q3 results with sales up 8% and net income up 13.2%.

From Yahoo Finance: 2025-06-09 11:30:00

Costco Wholesale Corporation (COST) shares were trading at $1,051.69 as of June 4th, with trailing and forward P/E ratios of 59.65 and 51.81 respectively. In Q3 FY2025, Costco reported sales up 8% y/y to $63.2bn and net income up 13.2% to $1.90bn, driven by strong membership income and strategic operational decisions.

Despite inflation and tariff challenges, Costco’s low-SKU model and agile sourcing strategies have allowed it to maintain value for members without significant price hikes. With disciplined capex, focus on membership income, and consistent growth in revenue and net profits, Costco continues to be a top-performing retail compounder in the market.

While some investors have expressed caution due to Costco’s premium valuation, others see the company as a high-quality compounder with long-term potential. With 93 hedge fund portfolios holding COST at the end of Q1 2025, the stock remains a popular choice among investors. However, some believe that other AI stocks may offer higher returns with lower downside risk.



Read more at Yahoo Finance: Costco Wholesale Corporation (COST): A Bull Case Theory