Costco Wholesale Corporation

Strong Q4 and FY 2026 operating momentum (with “core” strength) - Q4 net income: $2.998B ($6.75 EPS). Includes a nonrecurring $0.15 EPS benefit from IEEPA tariff refunds (net of partial reinvestment). - Q4 net sales: $93.87B, +11.2% YoY; comp sales +9.4%, and +6.7% excluding gas price inflation & FX (per management’s adjusted comp metrics). - Traffic and basket: worldwide shopping frequency +3.3%, average ticket +5.9% (worldwide). - Digital: digitally enabled comparable sales +19.5% and +19.8% ex-FX; total site/app traffic +30%; digitally enabled sales > $33B for the year (+20%).

Membership remains a key story: quality up, growth normalizing - Total paid members: 84.1M (+3.8% YoY). Executive penetration hit an all-time high; paid executive members 42.3M (+9.4% YoY). - Renewal rates improved: U.S./Canada 92.3% (+10 bps vs last quarter) and worldwide 89.8% (+10 bps)—management expects executive mix to further support renewals. - Investor concern addressed: membership growth vs unit growth narrowing was framed as not alarming, with emphasis on continued new sign-ups, younger member mix, and renewal stabilization (normalization as newer cohorts mature).

Guidance/outlook: warehouse growth plan remains the major capex-driven growth lever - FY 2026 warehouse openings: 28 new (including 3 relocations, 25 net new) → 939 total warehouses worldwide. - FY 2027 plan: open 33 warehouses total, including 5 relocations, targeting ~30 net new openings/year (aligned to store-growth goal). - Geographic mix for FY27: Europe 4, Canada 5, Mexico 1; Asia/Australia pipeline referenced for FY28. - Capital expenditures: $6.4B for FY 2026; FY 2027 capex ~$7.5B (increase driven by more warehouse pipeline + “outsized” supply chain spending).