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Costco's Sales Momentum Builds as Q4 Traffic and Ticket Rise
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Key Takeaways
Costco Q4 net sales rose 11.2%, while total company comparable sales increased 9.4%.
Costco's global traffic climbed 3.3%, while average transaction size increased 5.9%.
Costco digitally-enabled comparable sales jumped 19.5%, or 19.8% adjusted for currency changes.
Costco Wholesale Corporation (COST - Free Report) demonstrated strong sales momentum in the fourth quarter of fiscal 2026, driven by gains in shopping frequency and average transaction value. Net sales reached $93,873 million, up 11.2% year over year. Total company comparable sales expanded 9.4%. On an adjusted basis — excluding the impacts of gasoline price changes and foreign exchange fluctuations — comparable sales grew 6.7% across the company.
A primary catalyst for this top-line growth was balanced growth between global store traffic and ticket sizes. Worldwide traffic, or shopping frequency, increased 3.3% during the 16-week fourth quarter ended Aug. 30, 2026. The average transaction size, or ticket, rose 5.9% globally. When adjusted for gasoline prices and foreign exchange, the average ticket advanced 3.3% worldwide.
Regional segment performance highlighted broad-based strength in customer activity. In the United States, reported comparable sales climbed 10.7%, supported by a 7.3% increase in ticket and a 3.2% rise in traffic. On an adjusted basis, U.S. comparable sales were up 7.2%, with ticket rising 3.9% and traffic up 3.2%. Canada reported adjusted comparable sales growth of 4.6%, backed by a 2.1% ticket gain and a 2.5% traffic rise. Other International markets recorded an adjusted comparable sales increase of 6.2%, with traffic expanding 4.5% and ticket rising 1.7%.
Costco’s performance was strong across warehouses, ancillary businesses and digital platforms. Digitally-enabled comparable sales saw significant gains, jumping 19.5% on a reported basis and 19.8% when adjusted for changes in foreign exchange rates.
Costco’s fourth-quarter comparable sales growth was supported by a balanced contribution from higher member visits and increased spending per transaction.
Competitor Sales Momentum: Walmart & Target
Walmart Inc. (WMT - Free Report) also saw sales growth supported by higher customer activity and digital momentum. Walmart U.S. comparable sales increased 2.6% in the second quarter of fiscal 2027, driven by higher transactions, while average ticket rose 1.1%. Globally, Walmart reported 23% growth in e-commerce sales, reflecting continued strength in pickup, delivery and marketplace channels.
Target Corporation (TGT - Free Report) reported improving traffic trends in the second quarter of fiscal 2026, with comparable sales rising 3.8%, driven by a 3.6% increase in comparable traffic. Target also recorded an 8.7% improvement in comparable digital sales, supported by same-day delivery growth of more than 25%. Target noted that top-line strength was broad-based across channels and categories, with all six core merchandising categories growing year over year.
What the Latest Metrics Say About Costco
Costco has seen its shares tumble 2.5% over the past three months compared with the industry’s decline of 2.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 40.59, higher than the industry’s ratio of 27.39. However, it is trading below its 12-month median level of 45.14, indicating some moderation in valuation.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current fiscal-year sales and earnings per share implies year-over-year growth of 7.9% and 10.4%, respectively. For the next fiscal year, the consensus estimate indicates a 7% rise in sales and 9.5% growth in earnings.
The Zacks Consensus Estimate for earnings for the current fiscal year has increased by 7 cents to $22.57 per share, while the estimate for the next fiscal year has risen by 25 cents to $24.71 per share over the past seven days.
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Costco's Sales Momentum Builds as Q4 Traffic and Ticket Rise
Key Takeaways
Costco Wholesale Corporation (COST - Free Report) demonstrated strong sales momentum in the fourth quarter of fiscal 2026, driven by gains in shopping frequency and average transaction value. Net sales reached $93,873 million, up 11.2% year over year. Total company comparable sales expanded 9.4%. On an adjusted basis — excluding the impacts of gasoline price changes and foreign exchange fluctuations — comparable sales grew 6.7% across the company.
A primary catalyst for this top-line growth was balanced growth between global store traffic and ticket sizes. Worldwide traffic, or shopping frequency, increased 3.3% during the 16-week fourth quarter ended Aug. 30, 2026. The average transaction size, or ticket, rose 5.9% globally. When adjusted for gasoline prices and foreign exchange, the average ticket advanced 3.3% worldwide.
Regional segment performance highlighted broad-based strength in customer activity. In the United States, reported comparable sales climbed 10.7%, supported by a 7.3% increase in ticket and a 3.2% rise in traffic. On an adjusted basis, U.S. comparable sales were up 7.2%, with ticket rising 3.9% and traffic up 3.2%. Canada reported adjusted comparable sales growth of 4.6%, backed by a 2.1% ticket gain and a 2.5% traffic rise. Other International markets recorded an adjusted comparable sales increase of 6.2%, with traffic expanding 4.5% and ticket rising 1.7%.
Costco’s performance was strong across warehouses, ancillary businesses and digital platforms. Digitally-enabled comparable sales saw significant gains, jumping 19.5% on a reported basis and 19.8% when adjusted for changes in foreign exchange rates.
Costco’s fourth-quarter comparable sales growth was supported by a balanced contribution from higher member visits and increased spending per transaction.
Competitor Sales Momentum: Walmart & Target
Walmart Inc. (WMT - Free Report) also saw sales growth supported by higher customer activity and digital momentum. Walmart U.S. comparable sales increased 2.6% in the second quarter of fiscal 2027, driven by higher transactions, while average ticket rose 1.1%. Globally, Walmart reported 23% growth in e-commerce sales, reflecting continued strength in pickup, delivery and marketplace channels.
Target Corporation (TGT - Free Report) reported improving traffic trends in the second quarter of fiscal 2026, with comparable sales rising 3.8%, driven by a 3.6% increase in comparable traffic. Target also recorded an 8.7% improvement in comparable digital sales, supported by same-day delivery growth of more than 25%. Target noted that top-line strength was broad-based across channels and categories, with all six core merchandising categories growing year over year.
What the Latest Metrics Say About Costco
Costco has seen its shares tumble 2.5% over the past three months compared with the industry’s decline of 2.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 40.59, higher than the industry’s ratio of 27.39. However, it is trading below its 12-month median level of 45.14, indicating some moderation in valuation.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current fiscal-year sales and earnings per share implies year-over-year growth of 7.9% and 10.4%, respectively. For the next fiscal year, the consensus estimate indicates a 7% rise in sales and 9.5% growth in earnings.
The Zacks Consensus Estimate for earnings for the current fiscal year has increased by 7 cents to $22.57 per share, while the estimate for the next fiscal year has risen by 25 cents to $24.71 per share over the past seven days.
Image Source: Zacks Investment Research
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.