We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Costco's 19% September Digital Sales Growth Signals Strong Momentum
Read MoreHide Full Article
Key Takeaways
Costco's digitally enabled sales rose 19% in September 2026, or 19.1% excluding currency fluctuations.
Digital comparable sales grew 19.5% in fiscal Q4 and 20.9% for the full year, reflecting sustained demand.
Costco's website and app traffic jumped 30% in the final quarter of fiscal 2026.
Costco Wholesale Corporation (COST - Free Report) continued to demonstrate solid momentum across its digital operations in September 2026, reinforcing the strength of its online shopping ecosystem. The warehouse retailer reported a 19% year-over-year increase in digitally enabled sales for the five weeks ended Oct. 4, 2026. Excluding foreign exchange fluctuations, growth stood at 19.1%, suggesting that the reported jump was largely driven by underlying business activity rather than currency fluctuations.
The September results extend the healthy digital trends witnessed in the fourth quarter of fiscal 2026, when digitally enabled comparable sales advanced 19.5%, or 19.8% on an adjusted basis. For the full fiscal year, digitally enabled comparable sales increased 20.9%, highlighting sustained demand for Costco's digital offerings.
Costco defines digitally enabled sales as transactions initiated through digital devices, regardless of whether orders are fulfilled through warehouses, distribution centers or Costco Travel.
Costco's ongoing digital improvements provide additional context for this momentum. During the fourth quarter, e-commerce website and app traffic increased 30%, while personalized initiatives generated triple-digit sales growth. Costco expanded its same-day delivery options through partnerships with Uber Eats and DoorDash, alongside its established Instacart relationship.
September's performance reflects the continuation of an established digital growth trend, supported by broader shopping access, improving personalization and stronger engagement across Costco's digital channels.
How Walmart & Target Are Scaling Digital Sales
Walmart Inc.’s (WMT - Free Report) digital momentum remains strong, with global e-commerce sales rising 23% in second-quarter fiscal 2027 and accounting for 24% of total net sales. Walmart U.S. e-commerce grew 24%, supported by store-fulfilled delivery and marketplace expansion. Walmart also reported more than 40% growth in store-fulfilled deliveries, while fast delivery grew 48%, underscoring how Walmart is using speed, assortment and fulfillment density to deepen digital engagement.
Target Corporation (TGT - Free Report) also posted healthy digital growth, with second-quarter fiscal 2026 comparable digital sales increasing 8.7%, led by more than 25% growth in same-day delivery. Target is supporting this momentum through digital personalization, AI-powered shopping tools and enhanced app experiences. Target’s digital traffic from external AI platforms is also rising more than 3.5 times the industry rate, suggesting Target is increasingly using technology and convenience to strengthen online discovery and engagement.
How Does Costco Stack Up Against Its Industry?
Costco has seen its shares jump 2.2% over the past three months compared with the industry’s rise of 0.3%.
Image Source: Zacks Investment Research
What Does Costco’s Current Valuation Suggest?
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 41.03, higher than the industry’s ratio of 27.78. However, it is trading below its 12-month median level of 44.82, indicating some moderation in valuation.
Image Source: Zacks Investment Research
What Do Earnings Estimates Signal for Costco?
The Zacks Consensus Estimate for Costco’s current fiscal-year sales and earnings per share implies year-over-year growth of 8.2% and 11.7%, respectively. For the next fiscal year, the consensus estimate indicates a 7.1% rise in sales and 9.1% growth in earnings.
Image Source: Zacks Investment Research
Costco remains well-positioned for steady growth, supported by robust comparable sales, strong membership loyalty, accelerating digital engagement and warehouse expansion. However, inflationary pressures and lingering tariff-related uncertainties warrant caution. While its resilient business model and value-driven strategy support long-term prospects, these near-term challenges justify a balanced outlook. Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
Image: Bigstock
Costco's 19% September Digital Sales Growth Signals Strong Momentum
Key Takeaways
Costco Wholesale Corporation (COST - Free Report) continued to demonstrate solid momentum across its digital operations in September 2026, reinforcing the strength of its online shopping ecosystem. The warehouse retailer reported a 19% year-over-year increase in digitally enabled sales for the five weeks ended Oct. 4, 2026. Excluding foreign exchange fluctuations, growth stood at 19.1%, suggesting that the reported jump was largely driven by underlying business activity rather than currency fluctuations.
The September results extend the healthy digital trends witnessed in the fourth quarter of fiscal 2026, when digitally enabled comparable sales advanced 19.5%, or 19.8% on an adjusted basis. For the full fiscal year, digitally enabled comparable sales increased 20.9%, highlighting sustained demand for Costco's digital offerings.
Costco defines digitally enabled sales as transactions initiated through digital devices, regardless of whether orders are fulfilled through warehouses, distribution centers or Costco Travel.
Costco's ongoing digital improvements provide additional context for this momentum. During the fourth quarter, e-commerce website and app traffic increased 30%, while personalized initiatives generated triple-digit sales growth. Costco expanded its same-day delivery options through partnerships with Uber Eats and DoorDash, alongside its established Instacart relationship.
September's performance reflects the continuation of an established digital growth trend, supported by broader shopping access, improving personalization and stronger engagement across Costco's digital channels.
How Walmart & Target Are Scaling Digital Sales
Walmart Inc.’s (WMT - Free Report) digital momentum remains strong, with global e-commerce sales rising 23% in second-quarter fiscal 2027 and accounting for 24% of total net sales. Walmart U.S. e-commerce grew 24%, supported by store-fulfilled delivery and marketplace expansion. Walmart also reported more than 40% growth in store-fulfilled deliveries, while fast delivery grew 48%, underscoring how Walmart is using speed, assortment and fulfillment density to deepen digital engagement.
Target Corporation (TGT - Free Report) also posted healthy digital growth, with second-quarter fiscal 2026 comparable digital sales increasing 8.7%, led by more than 25% growth in same-day delivery. Target is supporting this momentum through digital personalization, AI-powered shopping tools and enhanced app experiences. Target’s digital traffic from external AI platforms is also rising more than 3.5 times the industry rate, suggesting Target is increasingly using technology and convenience to strengthen online discovery and engagement.
How Does Costco Stack Up Against Its Industry?
Costco has seen its shares jump 2.2% over the past three months compared with the industry’s rise of 0.3%.
Image Source: Zacks Investment Research
What Does Costco’s Current Valuation Suggest?
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 41.03, higher than the industry’s ratio of 27.78. However, it is trading below its 12-month median level of 44.82, indicating some moderation in valuation.
Image Source: Zacks Investment Research
What Do Earnings Estimates Signal for Costco?
The Zacks Consensus Estimate for Costco’s current fiscal-year sales and earnings per share implies year-over-year growth of 8.2% and 11.7%, respectively. For the next fiscal year, the consensus estimate indicates a 7.1% rise in sales and 9.1% growth in earnings.
Image Source: Zacks Investment Research
Costco remains well-positioned for steady growth, supported by robust comparable sales, strong membership loyalty, accelerating digital engagement and warehouse expansion. However, inflationary pressures and lingering tariff-related uncertainties warrant caution. While its resilient business model and value-driven strategy support long-term prospects, these near-term challenges justify a balanced outlook. Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.