Costco Earnings Preview: Retail Giant Expected to Post Double-Digit Profit Growth
Analysts see EPS rising 12.4% in Q3; Membership fee hike seen boosting profitability
Costco Wholesale Corp. (NASDAQ: COST) is scheduled to report its fiscal th ird-quarter 2025 earnings after the market closes on Thursday, May 29.
Analysts expect the retail heavyweight to deliver a profit of $4.25 per share, marking a 12.4% increase from the $3.78 per share reported in the same quarter a year ago, according to Nasdaq.
The company has exceeded Wall Street’s bottom-line expectations in two of the past three quarters, while falling short in one instance. For the full fiscal year 2025, analysts project earnings per share (EPS) of $17.96, up 11.5% from the $16.11 reported in fiscal 2024.
Executives have previously stated that the impact of the membership fee hike, implemented at the start of fiscal 2025 in September, is expected to start contributing positively to profits in the second half of the fiscal year and continue into fiscal 2026. Analysts note that this high-margin membership revenue could help Costco weather tariff pressures without the need to raise prices.
Market sentiment remains bullish ahead of the results. Of the 16 analysts tracked by Visible Alpha, ten rate the stock a “buy,” while six maintain a “hold” rating. The average price target is $1,058.40, indicating an approximate 5% upside from Costco's closing price last Friday, as reported by Investopedia.
Costco shares saw a boost on April 17, outperforming the broader market after the company announced a 12% increase in its quarterly dividend, raising the payout from $1.16 to $1.30 per share.
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