Costco Wholesale Corp (COST) delivered another solid quarter that has Wall Street feeling pretty confident about the warehouse retailer's momentum. Despite some early trading volatility on Friday, analysts are doubling down on their bullish stance after the company reported fiscal first-quarter results that handily beat expectations.
The numbers tell a straightforward story: Costco posted earnings of $4.50 per share, crushing the consensus estimate of $4.27. Total sales jumped 8.3% to $67.3 billion, topping the $67.1 billion analysts were expecting. Operating margin expanded by 13 basis points to 3.7%, right in line with forecasts.
What Analysts Are Saying
BofA Securities analyst Robert Ohmes kept his Buy rating and $1,095 price target intact. He pointed out that comparable store sales grew 6.4% overall and 5.9% in the U.S., with growth coming from both higher traffic and bigger basket sizes. That's the kind of balance retailers dream about. Ohmes raised his fiscal 2026 earnings estimate to $20.00 per share from $19.72, noting that extended store hours and an Instacart-funded $10 credit should help cushion any slowdown as the company faces tougher year-over-year comparisons starting in December.
Over at Telsey Advisory Group, analyst Joseph Feldman maintained his Outperform rating with a $1,100 price target. He credited the quarter's success to Costco's business model and the remarkable loyalty of its membership base. With roughly 145.9 million total cardholding members, the company has built a powerful data asset that helps it introduce trend-right products, maintain consistently low prices, and enhance digital capabilities.
Feldman expects the retailer to keep gaining market share and capturing a bigger slice of existing members' wallets through new store openings and smart merchandising. That membership loyalty isn't just nice to have—it's the engine driving everything else.
COST Price Action: Costco shares were down 1.02% at $875.43 at the time of publication on Friday.
