Costco (COST): $303 billion of revenue on a 3.9% operating margin, 84 million paying members and five special dividends

Costco runs membership warehouse clubs: members pay an annual fee, $65 in the U.S., to buy a limited selection of products at low prices. In fiscal 2026, which ended August 30, 2026, revenue reached $303.2 billion, up 10.1%, and net income was $9.23 billion, or $20.76 a share. The stock closed at $1,018.21 on October 22, 2026, for a market value of $451 billion, 7.0% below its highest close of $1,094.32 on May 19, 2026.

From Seattle to Price/Costco

Costco began operations in 1983 in Seattle, co-founded by James Sinegal and Jeffrey Brotman. In October 1993 it merged with The Price Company, which had pioneered the membership warehouse in 1976; each Costco share became one share of the combined Price/Costco. The company took the Costco Wholesale Corporation name again in 1999. It is based in Issaquah, Washington, trades on Nasdaq and has been run since January 2024 by Ron Vachris, previously its president and chief operating officer.

What it sells, and how little comes from fees

Foods and sundries, which in Costco’s definition also include liquor and tobacco, and fresh foods together were 53% of fiscal 2026 net sales. Gasoline alone was 11% of net sales, sold at 774 stations. Membership fees were only 1.9% of revenue. At the end of the fiscal year Costco had 84.1 million paid members, 42.3 million of them on the higher-fee Executive membership, and a renewal rate of 92.3% in the U.S. and Canada. Kirkland Signature, its private-label brand, generally earns higher margins than national brands, the company says.

The model runs on thin margins. Gross margin was 11.09% of net sales in fiscal 2026 and the operating margin 3.9% of revenue. By region, the United States, including Puerto Rico, was 72.5% of revenue with a 3.5% operating margin; Canada 13.4% with 5.2%; and other countries 14.1% with 4.5%. Of the 939 warehouses on October 14, 2026, 647 were in the United States and Puerto Rico, 115 in Canada and 43 in Mexico.

Fiscal 2020 to 2026

Costco’s fiscal year ends on the Sunday nearest the end of August, and some years have 53 weeks instead of 52 — fiscal 2012, 2017 and 2023 — which distorts the growth of those years and the next. Fourth-quarter 2026 earnings included a one-time benefit of $0.15 a share from tariff refunds, the company said. On fiscal 2026 earnings, the stock trades at about 49 times earnings.

Dividends, regular and special

Costco declared its first quarterly dividend in April 2004; the latest, declared on October 14, 2026, is $1.47 a share, a yield of about 0.6% at the October 22 price. It has also paid five special dividends: $7.00 in December 2012, $5.00 in February 2015, $7.00 in May 2017, $10.00 in December 2020 and $15 in January 2024, the last costing about $6.66 billion.

Bought at the first close after the 1993 merger, $9.50 on October 22, 1993 (adjusted for the 2000 two-for-one split), $1,000 of Costco stock would be worth about $107,000 at the October 22, 2026 close, or about $161,000 with dividends reinvested. Price data before the merger is not usable in this comparison: the series misses two stock splits from 1991 and 1992.

Who owns it, and who sold

Six of the 38 investment managers this site tracks held Costco at the end of June, all with more than $1 million, down from eight in March; Steve Cohen’s Point72 and Renaissance Technologies sold out. The largest holder was Cliff Asness’s AQR, with 1.25 million shares worth $1.17 billion on June 30, after adding 22%. Israel Englander’s Millennium nearly tripled its stake. The stock has risen 8.8% since June 30. Among all shareholders, Vanguard held 9.79% and BlackRock 7.83%, according to the December 2025 proxy statement.

In the twelve months to October 22, 2026, Costco insiders sold $18.3 million of stock in 15 sales and bought none. None of the sales was made under a 10b5-1 trading plan. The largest sellers were executive vice presidents Claudine Adamo ($5.3 million), William Wilcox ($3.3 million) and Javier Polit ($2.3 million); the chief executive and the chief financial officer did not sell.

The figures above come from Costco’s filings and the 13F, Form 4 and Form 144 filings listed below. They describe what happened; they are not a forecast and not investment advice.