Costco Reports $1.329 Billion Membership Fee Income, Up 14%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Yahoo Finance
- Membership Income Growth: Costco reported $1.329 billion in membership fee income for Q1 2026, reflecting a $163 million increase or 14% year-over-year, indicating a robust expansion of its membership base and upgrade trends.
- Increase in Membership Numbers: As of the end of Q1, Costco had 81.4 million total paid members, up 5.2% year-over-year, with executive memberships reaching 39.7 million, a 9.1% increase, showcasing the company's success in attracting new members and encouraging upgrades.
- Stable Renewal Rates: Although the renewal rate for U.S. and Canada slightly declined to 92.2% and the global rate to 89.7%, this minor drop was less than anticipated, indicating effective strategies in maintaining member loyalty.
- Importance of Membership Cards: CEO Ron Vachris emphasized that the membership card is the most critical item sold by Costco, with membership fees contributing 2% of total revenue but accounting for 65% of net operating income in 2024, highlighting the significance of member relationships for profitability.
COST
$873.35+Infinity%1D
Analyst Views on COST
Wall Street analysts forecast COST stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for COST is 1092 USD with a low forecast of 907.00 USD and a high forecast of 1218 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
24 Analyst Rating
16 Buy
8 Hold
0 Sell
Moderate Buy
Current: 871.860
Low
907.00
Averages
1092
High
1218
Current: 871.860
Low
907.00
Averages
1092
High
1218
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.
