Costco Earnings Beat Estimates as U.S. Sales Rise Amid Value Focus and Tariff Pressures

Sophia Reyes · September 26, 2025 3:19 PM

Costco (COST) reported fourth-quarter earnings Thursday after the market close, slightly surpassing Wall Street expectations as it navigated a challenging consumer environment, tariff pressures, and competition from peers like Walmart’s (WMT) Sam’s Club.

Revenue for the quarter reached $86.16 billion, edging past the $86.03 billion forecast, while adjusted earnings per share came in at $5.87, above the $5.82 consensus. Same-store sales grew 6.4%, slightly above the 6.2% analysts expected. In the U.S., same-store sales rose 6%, just below the 6.1% forecast, while Canada led growth with an 8.3% increase versus the anticipated 6.8%. Other international markets delivered 7.2% growth, matching estimates. For comparison, Sam’s Club reported 5.9% same-store sales growth in its latest quarter.

Fiscal 2025 annual results showed revenue of $275.24 billion and adjusted EPS of $18.21, both slightly exceeding expectations of $275 billion and $18.10 per share. Annual same-store sales climbed 7.6%, beating the 7.5% forecast. Despite the positive results, Costco stock fell roughly 0.5% in after-hours trading. Year-to-date, shares have underperformed the broader market, rising about 2.5% compared with the S&P 500’s 13.5% gain.

Analyst Rupesh Parikh of Oppenheimer remains optimistic on Costco’s long-term outlook, citing the company’s value proposition, global growth strategy, and consistent shareholder returns. “Management has the potential for sustainable top- and bottom-line delivery even against a more competitive retail backdrop,” he said. Still, he noted that Amazon’s same-day delivery rollout has pressured Costco and other retailers, including BJ’s (BJ), Dollar General (DG), Dollar Tree (DLTR), and Kroger (KR).

Evercore ISI analyst Greg Melich highlighted Costco’s advantages in the current environment, stating, “We believe Costco is well positioned to win share and leverage scale and supply chain strengths to navigate tariff impacts amidst a choppy consumer backdrop.” CEO Ron Vachris has previously noted that one-third of U.S. sales are imported, with two-thirds of those non-food items and Chinese imports accounting for 8% of U.S. sales.

A snapshot of Costco’s enduring value proposition is the Kirkland Signature $1.50 hot dog and soda combo, which has held the same price since 1985 despite inflation and rising consumer costs.