How Costco’s Q1 2026 Results and Tariff Strategy At Costco Wholesale (COST) Has Changed Its Investment Story

• In its recently reported fiscal first quarter of 2026, Costco Wholesale posted revenue of US$67,307 million and net income of US$2,001 million, with earnings per share rising year on year as sales grew across regions and channels.
• Beyond the headline figures, Costco is reshaping its product assortment and sourcing to blunt tariff impacts while accelerating warehouse expansion and digital investments, even as it confronts softer membership renewal trends.
• Next, we’ll examine how Costco’s solid quarterly performance and tariff-mitigation efforts influence its existing investment narrative and future expectations.

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Costco Wholesale Investment Narrative Recap

To own Costco today, you have to believe its membership model, warehouse expansion and growing digital channel can justify a premium price tag, even as costs and tariffs fluctuate. The latest quarter supports that thesis with broad-based sales and earnings growth, but softer membership renewal trends and persistent tariff uncertainty remain the key near term swing factors. On balance, this report does not materially change those core catalysts or the biggest risk to the story.

The most relevant recent development is Costco’s tariff focused lawsuit and its efforts to reshape product sourcing toward more U.S. made goods. Together with the company’s moves to trim tariff heavy items, this sits squarely at the intersection of its biggest current risk higher import costs and its main catalyst expanding warehouses and e commerce while trying to protect price leadership and margins.

But investors should also be aware that if tariff volatility persists and import costs stay elevated, Costco’s ability to hold its pricing edge and membership appeal could...

Read the full narrative on Costco Wholesale (it's free!)

Costco Wholesale’s narrative projects $329.0 billion in revenue and $10.4 billion in earnings by 2028.

Uncover how Costco Wholesale's forecasts yield a $1056 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Twenty nine members of the Simply Wall St Community value Costco between about US$581 and US$1,225 per share, showing a wide range of expectations. Against that backdrop, Costco’s ongoing warehouse expansion and digital investments feature heavily in how these investors think about the company’s long term performance and invite you to consider multiple angles on its prospects.

Explore 29 other fair value estimates on Costco Wholesale - why the stock might be worth as much as 39% more than the current price!

Build Your Own Costco Wholesale Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Costco Wholesale research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Costco Wholesale research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Costco Wholesale's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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