Costco exceeded analyst expectations in the fiscal fourth quarter with earnings per share of $5.87 compared to $5.80 expected and revenue of $86.16 billion compared to $86.06 billion expected. Net income rose to $2.61 billion, with revenue up from $79.7 billion a year earlier. Same-store sales grew by 6.4%, while e-commerce sales increased by 13.5%.

Costco’s growth is attributed to attracting younger shoppers with convenient online shopping, a wider variety of merchandise, and cheaper meals. The company’s revenue, which includes membership fees, reached $275.24 billion for the full year, up 8.1% year over year. Membership fee total jumped 14% in the quarter, reflecting an increase in paying shoppers and higher fees.

Despite the impact of tariffs, Costco is well-positioned due to its focus on groceries and frequent merchandise turnover. The company has taken steps to reduce tariff-related costs, including rushing orders to the U.S. before duties took effect and sourcing more items for its private brand in regions where they are sold. Shares of Costco have increased by 180% over the past five years.

Costco’s success is seen in its ability to adapt to changing consumer preferences and economic challenges. The company’s focus on value, variety, and convenience has attracted a broader demographic of members, leading to revenue growth and increased membership fees. Costco’s strategic actions to mitigate tariff-related costs demonstrate its resilience in a competitive retail landscape.

Read more at CNBC: Costco (COST) Q4 2025 earnings