Have you evaluated the performance of Costco's (COST Quick QuoteCOST - Free Report) international operations during the quarter that concluded in August 2025? Considering the extensive worldwide presence of this warehouse club operator, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

Upon examining COST's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

For the quarter, the company's total revenue amounted to $86.16 billion, experiencing an increase of 8.1% year over year. Next, we'll explore the breakdown of COST's international revenue to understand the importance of its overseas business operations.

Exploring COST's International Revenue Patterns

Other International accounted for 14% of the company's total revenue during the quarter, translating to $12.03 billion. Revenues from this region represented a surprise of +1.73%, with Wall Street analysts collectively expecting $11.82 billion. When compared to the preceding quarter and the same quarter in the previous year, Other International contributed $8.57 billion (13.6%) and $10.7 billion (13.4%) to the total revenue, respectively.

During the quarter, Canada contributed $11.9 billion in revenue, making up 13.8% of the total revenue. When compared to the consensus estimate of $12.09 billion, this meant a surprise of -1.58%. Looking back, Canada contributed $8.32 billion, or 13.2%, in the previous quarter, and $11.09 billion, or 13.9%, in the same quarter of the previous year.

Projected Revenues in Foreign Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that Costco will post revenues of $66.98 billion, which reflects an increase of 7.8% the same quarter in the previous year. The revenue contributions are expected to be 14.1% from Other International ($9.47 billion), and 13.5% from Canada ($9.06 billion).

For the full year, the company is expected to generate $296.32 billion in total revenue, up 7.7% from the previous year. Revenues from Other International and Canada are expected to constitute 14.1% ($41.83 billion), and 13.6% ($40.33 billion) of the total, respectively.

Closing Remarks

Relying on international markets for revenues, Costco faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.

Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

Costco, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Costco's Recent Stock Market Performance

The stock has declined by 4.3% over the past month compared to the 4% increase of the Zacks S&P 500 composite. Meanwhile, the Zacks Retail-Wholesale sector, which includes Costco,has decreased 3.5% during this time frame. Over the past three months, the company's shares have experienced a loss of 3.8% relative to the S&P 500's 8.8% increase. Throughout this period, the sector overall has witnessed a 3.3% increase.