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Costco Tops Q1 Targets as Valuation Concerns Cloud 2026 Outlook

A rich 46x earnings multiple leaves little room for stumbles at a retailer posting steady single-digit growth.

Overview

  • Net sales rose just over 8% to just under $66 billion in fiscal Q1 2026, and earnings beat expectations.
  • Shares are down roughly 6% year to date in 2025 despite consistent operational performance.
  • The stock trades near 46 times earnings, a premium that analysts say could limit gains into next year.
  • Global renewal rate slipped to 89.7% after the rollout of online registration and a higher mix of promotional members, from about 90.2% previously.
  • E-commerce remains a bright spot, up 20.5% year over year in fiscal Q4, though a recent analyst downgrade weighed on the stock after the latest report.