Costco Wholesale Corporation

Strong FY26 performance; Q4 profitability +11% ex-tariff refunds - Q4 net income: $2.998B, EPS $6.75 (reported). - Includes nonrecurring IEEPA tariff refund benefit of $0.15 EPS; ex this item: net income +12.3% and EPS +12.4% vs. prior year. - Q4 net sales: $93.87B (+11.2% YoY); comps +9.4%, or +6.7% adjusted for gas price inflation & FX; digital comps +19.5% (or +19.8% ex FX). - Traffic +3.3% worldwide; ticket +5.9% worldwide (ticket +3.3% ex gas/FX).

Membership momentum is quality-led (executive penetration at all-time high) - Total paid members: 84.1M (+3.8% YoY); cardholders 150.4M (+3.6%). - Executive paid members: 42.3M (+9.4%)—record high executive penetration (supporting higher loyalty/renewals). - Renewal rates: U.S./Canada 92.3% (+10 bps QoQ), Worldwide 89.8% (+10 bps). - Management view: narrowing membership vs unit growth is likely partly normalizing/noise; the key is younger members + higher exec mix + renewal improvement.

Value strategy continues (tariff refunds reinvested via price reductions); comps remain resilient - Q4 tariff refunds received: $184M ($174M refunds + $10M interest), about ~1/3 of expected total. - Costco reinvested most of the dollars into member value, mainly price reductions across the second half of Q4 (produce/meat/beverages and some nonfood like home furnishings/hardware). - CEO/CFO takeaway: despite no “step-change” in sales trajectory yet, they expect resilience; excluding gas, comps are still in the ~6–7% adjusted range.