Costco Wholesale delivered fiscal fourth-quarter results that exceeded expectations, reinforcing Goldman Sachs’ conviction that the stock is positioned for a substantial advance. The investment bank maintained its buy rating on the retailer, though it trimmed its price target to $1,134 from $1,159—a level that still implies roughly 26% upside from Thursday’s close.
“Costco is prioritizing tariff refunds for price investments,” analyst Kate McShane wrote in a Friday note to clients. “The company is well positioned to benefit from younger members and additional delivery options.”
The warehouse club operator posted earnings of $6.60 per share, comfortably ahead of the $6.53 consensus estimate compiled by LSEG. Revenue reached $95.72 billion, also surpassing forecasts. Despite the solid performance, shares have declined approximately 5% over the past 12 months as investors weighed the impact of elevated fuel costs and intensifying e-commerce competition.
Goldman Sachs sees several catalysts that could reverse that trend. Notably, Costco plans to open 28 net new warehouses in fiscal 2027, with the majority slated for underserved markets. The firm’s outlook aligns with broader Wall Street sentiment: 25 of the 39 analysts covering the stock carry buy or strong-buy ratings, according to LSEG data. JPMorgan, Bank of America, and Morgan Stanley all reaffirmed buy-equivalent recommendations following the earnings release.
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