Costco Reports Fourth Quarter and 2025 Revenue Results
Costco Wholesale shared its fourth-quarter and 2025 financial results on Thursday, highlighting the benefits from new global locations, digital enhancements, and expanded hours for executive members.
Since June, the retailer has introduced exclusive morning hours for executive members, along with extended Saturday night hours available to all customers in the US.
Ron Vachris, Costco’s President and CEO, mentioned that these changes aimed to “enhance value and convenience.”
“We’re seeing that these added times have boosted US sales by around 1% since they were implemented,” he noted, adding that executive members also receive over $10 a month in credits on Instacart, totaling around $150. “Our members have really responded positively to this.”
These new benefits have contributed to a significant uptick in upgrades from Gold Star members to executive memberships, he explained.
In the fourth quarter alone, Costco opened 10 new warehouses—this includes a relocation in Canada, the 24th warehouse in Korea, a second in Sweden, and five in the US.
Throughout the fiscal year, Costco added 27 new warehouses, which includes 24 net new locations, according to Vachris.
“Looking ahead, we plan to open an additional 35 warehouses in the fiscal year 2026, five of which will be relocations,” he stated.
The company currently has 81 million paid members, reflecting a 6.3% increase from the previous year. The renewal rate stood at 92.3% in the US and Canada, with a global rate of 89.8%, as reported by Gary Millerchip, executive vice president and chief financial officer, during a revenue call.
“The drop in renewal rates mainly relates to the influx of online sign-ups affecting the renewal figures. Additionally, this quarter saw a significant impact from a large Groupon campaign back in December 2023,” Millerchip explained.
Quarterly net sales climbed 8% to reach $84.4 billion, compared to $78.2 billion from a year earlier. For the fiscal year, net sales totaled $269.9 billion, marking an 8.1% increase from last year’s $249.6 billion.
Recently, Costco celebrated multiple milestones, including the 40th anniversary of its $1.50 hot dog and soda combo.
Reflecting on the entire 2025 fiscal year, Vachris stated, “Our merchandising and operations teams have done an incredible job investing in our employees while achieving strong financial results and enhancing value and convenience for our members.”
“Our merchants have adapted their strategies to lessen the impact of tariffs and to source items our members need. By ensuring we offer the lowest prices with the best value, we respond flexibly to challenges like pay raises,” he added.
