Costco (COST) Membership Revenue Hits $5.3 Billion in 2026 with Nearly 90% Renewal Rate
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
Should l Buy COST?
Source: Fool
- Membership Revenue Growth: In 2025, Costco's membership revenue reached $5.3 billion, driven by an increase in paid memberships and a fee hike implemented in late 2024, with renewal rates nearing 90% globally, showcasing strong brand appeal and customer loyalty.
- International Expansion Potential: Operating over 900 warehouses globally, Costco has seen strong performance in markets like China, with future success hinging on converting international locations into high-quality membership bases that maintain North American renewal rates, thereby driving long-term growth.
- Profitability and Valuation: Costco's stock trades at a premium valuation above retail peers and historical averages, with investors looking for continued earnings growth in 2026 driven by operating leverage, steady sales growth, and expanding membership income to justify its high valuation.
- Execution Challenge: 2026 will serve as a test of Costco's execution capabilities, as investors seek evidence of the company's performance in global expansion, sustained membership growth, and profitability to reinforce its status as a reliable compounder in the market.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy COST?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on COST
Wall Street analysts forecast COST stock price to rise
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 1014.530
Low
769.00
Averages
1061
High
1205
Current: 1014.530
Low
769.00
Averages
1061
High
1205
About COST
Costco Wholesale Corporation (Costco) operates membership warehouses and e-commerce sites that offer a selection of nationally branded and private-label products in a wide range of categories. The Company buys the majority of its merchandise directly from suppliers and route it to cross-docking consolidation points (depots) or directly to its warehouses. It operates 891 warehouses, including 614 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 35 in Japan, 29 in the United Kingdom, 19 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, two in France, and one each in Iceland, New Zealand and Sweden. It also operates e-commerce sites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan and Australia. The Company provides wide selection of merchandise, plus the convenience of specialty departments and exclusive member services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Comparison: Walmart vs. Costco
- Walmart's Market Advantage: With over 5,000 locations in the U.S. covering 90% of the population, Walmart leverages its stores as e-commerce distribution centers, achieving a 24% growth in e-commerce in Q4 2026, showcasing its competitive edge.
- Commitment of a Dividend King: Walmart has raised its dividend for 53 consecutive years, currently yielding 0.74%, providing shareholders with stable returns while increasing its market share among high-income households.
- Costco's Membership Loyalty: Costco boasts a renewal rate of 92.1% in the U.S. and Canada, and 89.7% globally, with executive members accounting for 76% of total sales, reflecting its efficient business model and strong customer retention.
- E-commerce Sales Growth: Costco's e-commerce sales increased by 24% year-over-year in Q2, with total sales up 9.1%, indicating that its investments in a tech-driven market are paying off, promising continued returns for shareholders.
See More
Analysis of Competitive Advantages Between Walmart and Costco
- Customer Base Expansion: Walmart has successfully expanded its market share by attracting higher-income customers earning over $100,000, demonstrating strong resilience during economic downturns, which enhances its competitive position in the retail market.
- Significant E-commerce Growth: Walmart's e-commerce business grew by 24% year-over-year in the fiscal fourth quarter of 2026, leveraging its stores as e-commerce distribution centers to enhance customer responsiveness and drive overall sales growth, showcasing its success in digital transformation.
- High Membership Renewal Rates: Costco achieved a membership renewal rate of 92.1% in the second quarter of 2026, with an increasing number of members upgrading to executive memberships that cost double, which not only boosts customer loyalty but also means executive members account for 76% of total sales, further solidifying its market position.
- Stable Dividend Yields: As a
See More
Walmart: A Model for Long-Term Investment
- Outstanding Stock Performance: Walmart's stock has risen approximately 3,240% over the past 30 years, significantly outperforming the S&P 500's 916% gain, demonstrating its reliability and stability as a long-term investment.
- Consistent Dividend Growth: Walmart has raised its dividend for 53 consecutive years, earning the title of 'Dividend King', maintaining this record even during economic turmoil, which reflects its strong cash flow and profitability.
- E-commerce and Market Expansion: Walmart effectively counters Amazon's competition by expanding its e-commerce marketplace, upgrading delivery services, and launching the Walmart+ subscription service, with future growth expected from its e-commerce and advertising segments.
- Future Growth Expectations: Analysts project that from fiscal 2026 to 2029, Walmart's revenue and EPS will grow at CAGRs of 5% and 10%, respectively, indicating its long-term growth potential in the retail sector.
See More
Robinhood CFO Discusses Gold Membership Strategy
- Significant Gold Membership Growth: Robinhood's Gold membership reached a record 4.34 million in Q1 2026, marking a 36% year-over-year increase and a sequential rise of 170,000, indicating strong demand and success in user retention strategies.
- Enhanced User Engagement: Gold members deposit funds at twice the rate of average users, with significantly higher trading frequency and product adoption, demonstrating the effectiveness of the membership in fostering loyalty and activity.
- Costco-Inspired Pricing Strategy: Priced at $5 per month, the Gold membership aims to attract users through a low-cost strategy, with Verma noting that the 3% IRA match alone can offset the subscription cost, enhancing perceived value.
- Expanding Product Bundle Strategy: Robinhood is adopting an Amazon-like bundling approach, offering Gold members various benefits such as a 3% IRA match and a 3.35% annual yield on uninvested cash, with expectations to exceed one million Gold cardholders by the end of 2026, driving future revenue growth.
See More
Investment Comparison: Walmart vs. Costco
- Membership Renewal Advantage: Costco boasts a 92.1% membership renewal rate in the U.S. and Canada, with a global rate of 89.7%, leading to membership fee revenue of $5.3 billion in fiscal 2025, which grew by 13.6% in Q2 of fiscal 2026, showcasing its business stability and resilience against economic downturns.
- Walmart Advertising Revenue Growth: Walmart's global advertising revenue surged 37% to $6.4 billion annually, with U.S. e-commerce up 27%, indicating that its retail media network is effectively converting traffic into high-margin ad revenue, driving a transformation in its business model.
- Profitability Comparison: Costco's return on invested capital stands at 26%, compared to Walmart's approximately 16%, and while Walmart's forward P/E ratio is lower, its earnings diversification and rapid growth potential make it more attractive in the current market environment.
- Market Dynamics Impact: Amid inflationary pressures, Walmart's core customer base tends to gain incremental wallet share, while Costco's wealthier clientele makes it somewhat less resilient during economic downturns.
See More
Investment Value Analysis of Amazon vs. Costco
- Market Share Comparison: Amazon's market cap of $2.7 trillion is over five times that of Costco, indicating that while both companies excel in their respective industries, Amazon has greater growth potential, particularly in e-commerce and cloud computing.
- Cost Control Strategy: Amazon is enhancing efficiency by deploying industrial robots in its warehouses, which is expected to further reduce costs and improve gross margins, strengthening its competitive edge in a challenging market.
- Membership Model Advantage: Costco's membership model incentivizes customers to continue shopping, maintaining its competitiveness in the retail sector, while its rapidly growing e-commerce business contributes positively to overall revenue growth.
- Dividend Appeal: With a dividend yield of 0.51% and a history of increasing payouts for over 20 years, Costco attracts income-seeking investors, whereas Amazon does not pay dividends, making it less appealing for conservative investors.
See More
Investment Comparison: Walmart vs. Costco
- Walmart's Market Advantage: With over 5,000 locations in the U.S. covering 90% of the population, Walmart leverages its stores as e-commerce distribution centers, achieving a 24% growth in e-commerce in Q4 2026, showcasing its competitive edge.
- Commitment of a Dividend King: Walmart has raised its dividend for 53 consecutive years, currently yielding 0.74%, providing shareholders with stable returns while increasing its market share among high-income households.
- Costco's Membership Loyalty: Costco boasts a renewal rate of 92.1% in the U.S. and Canada, and 89.7% globally, with executive members accounting for 76% of total sales, reflecting its efficient business model and strong customer retention.
- E-commerce Sales Growth: Costco's e-commerce sales increased by 24% year-over-year in Q2, with total sales up 9.1%, indicating that its investments in a tech-driven market are paying off, promising continued returns for shareholders.
See More
Analysis of Competitive Advantages Between Walmart and Costco
- Customer Base Expansion: Walmart has successfully expanded its market share by attracting higher-income customers earning over $100,000, demonstrating strong resilience during economic downturns, which enhances its competitive position in the retail market.
- Significant E-commerce Growth: Walmart's e-commerce business grew by 24% year-over-year in the fiscal fourth quarter of 2026, leveraging its stores as e-commerce distribution centers to enhance customer responsiveness and drive overall sales growth, showcasing its success in digital transformation.
- High Membership Renewal Rates: Costco achieved a membership renewal rate of 92.1% in the second quarter of 2026, with an increasing number of members upgrading to executive memberships that cost double, which not only boosts customer loyalty but also means executive members account for 76% of total sales, further solidifying its market position.
- Stable Dividend Yields: As a
See More
Walmart: A Model for Long-Term Investment
- Outstanding Stock Performance: Walmart's stock has risen approximately 3,240% over the past 30 years, significantly outperforming the S&P 500's 916% gain, demonstrating its reliability and stability as a long-term investment.
- Consistent Dividend Growth: Walmart has raised its dividend for 53 consecutive years, earning the title of 'Dividend King', maintaining this record even during economic turmoil, which reflects its strong cash flow and profitability.
- E-commerce and Market Expansion: Walmart effectively counters Amazon's competition by expanding its e-commerce marketplace, upgrading delivery services, and launching the Walmart+ subscription service, with future growth expected from its e-commerce and advertising segments.
- Future Growth Expectations: Analysts project that from fiscal 2026 to 2029, Walmart's revenue and EPS will grow at CAGRs of 5% and 10%, respectively, indicating its long-term growth potential in the retail sector.
See More
Robinhood CFO Discusses Gold Membership Strategy
- Significant Gold Membership Growth: Robinhood's Gold membership reached a record 4.34 million in Q1 2026, marking a 36% year-over-year increase and a sequential rise of 170,000, indicating strong demand and success in user retention strategies.
- Enhanced User Engagement: Gold members deposit funds at twice the rate of average users, with significantly higher trading frequency and product adoption, demonstrating the effectiveness of the membership in fostering loyalty and activity.
- Costco-Inspired Pricing Strategy: Priced at $5 per month, the Gold membership aims to attract users through a low-cost strategy, with Verma noting that the 3% IRA match alone can offset the subscription cost, enhancing perceived value.
- Expanding Product Bundle Strategy: Robinhood is adopting an Amazon-like bundling approach, offering Gold members various benefits such as a 3% IRA match and a 3.35% annual yield on uninvested cash, with expectations to exceed one million Gold cardholders by the end of 2026, driving future revenue growth.
See More
Investment Comparison: Walmart vs. Costco
- Membership Renewal Advantage: Costco boasts a 92.1% membership renewal rate in the U.S. and Canada, with a global rate of 89.7%, leading to membership fee revenue of $5.3 billion in fiscal 2025, which grew by 13.6% in Q2 of fiscal 2026, showcasing its business stability and resilience against economic downturns.
- Walmart Advertising Revenue Growth: Walmart's global advertising revenue surged 37% to $6.4 billion annually, with U.S. e-commerce up 27%, indicating that its retail media network is effectively converting traffic into high-margin ad revenue, driving a transformation in its business model.
- Profitability Comparison: Costco's return on invested capital stands at 26%, compared to Walmart's approximately 16%, and while Walmart's forward P/E ratio is lower, its earnings diversification and rapid growth potential make it more attractive in the current market environment.
- Market Dynamics Impact: Amid inflationary pressures, Walmart's core customer base tends to gain incremental wallet share, while Costco's wealthier clientele makes it somewhat less resilient during economic downturns.
See More
Investment Value Analysis of Amazon vs. Costco
- Market Share Comparison: Amazon's market cap of $2.7 trillion is over five times that of Costco, indicating that while both companies excel in their respective industries, Amazon has greater growth potential, particularly in e-commerce and cloud computing.
- Cost Control Strategy: Amazon is enhancing efficiency by deploying industrial robots in its warehouses, which is expected to further reduce costs and improve gross margins, strengthening its competitive edge in a challenging market.
- Membership Model Advantage: Costco's membership model incentivizes customers to continue shopping, maintaining its competitiveness in the retail sector, while its rapidly growing e-commerce business contributes positively to overall revenue growth.
- Dividend Appeal: With a dividend yield of 0.51% and a history of increasing payouts for over 20 years, Costco attracts income-seeking investors, whereas Amazon does not pay dividends, making it less appealing for conservative investors.
See More
