Key Points
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Revenue and comparable sales have accelerated.
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Management cites rising oil prices as a factor boosting traffic at gas stations.
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The May sales report recorded the strongest increase since 2021.
Costco Wholesale (NASDAQ: COST) posted robust earnings for the 2026 fiscal third quarter (ended May 10). The warehouse retailer is seeing accelerating sales growth and growing appeal among price‑sensitive shoppers amid inflation.
Although the results were strong, they initially failed to lift the share price, which slipped after the announcement. Nonetheless, the broader market had expressed concerns about a potential slowdown as inflation persists, even though Costco’s performance has remained positive.
Accelerating Sales Performance
Key third‑quarter highlights include:
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Sales grew 11.6% year‑over‑year.
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Comparable sales rose 9.8%.
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Earnings per share increased from $4.28 to $4.93.
Image source: Getty Images.
Membership metrics reveal deeper trends: membership rose 4.1%, and the adjusted fee increased 7%. Renewal rates stayed strong at 92.2% in North America and 89.7% globally. While the global renewal rate has modestly dipped since the rollout of online registration, the channel is attracting younger members, supporting long‑term growth.
Costco continues to integrate digital solutions that align with its business model. While it does not pursue traditional e‑commerce, it operates a vigorous buy‑online‑in‑store‑pickup service and partners with third‑party platforms for same‑day grocery deliveries. Digital‑enabled sales grew 21.5% year‑over‑year in the third quarter.
Gas stations represent another growth engine. As shoppers seek the lowest fuel prices, many who have not previously shopped at Costco are trying its pumps. CEO Ron Vachris noted, “We expect this to deepen loyalty, as members who use our gas stations typically increase their overall spending at the warehouse.”
Even Stronger Outlook
Costco is among the few public companies that disclose select monthly results alongside quarterly data, and May showed continued acceleration. Total revenue rose 14.5% year‑over‑year, with comparable sales up 12.5%. Domestic comparable sales increased 13.7%, marking the best monthly performance since late 2021.
Higher oil prices appear to be a key driver of this acceleration. However, the commentary suggests that customers may continue to frequent Costco for fuel, sustaining engagement across the business. While the near‑term sales boost may be linked to a temporary rise in oil prices, there is potential for lasting benefits.
