Costco Q1 2026 Earnings Beat Expectations with Record Holiday Sales

Costco Wholesale has reported a strong start to its fiscal year 2026, driven by robust holiday season sales that exceeded Wall Street expectations. The company's first-quarter revenue reached $67.31 billion, surpassing the forecasted $67.14 billion, while earnings per share were $4.50 compared to the expected $4.27. This performance reflects consumers' strategic shopping behaviors focused on value and budget management during the holiday period. Significant sales milestones included a 31% increase in whole pizza sales at U.S. food courts, totaling approximately 358,000 pizzas served. Additionally, around 4.5 million pies were sold in the three days preceding Thanksgiving, with an average of 7,000 pies sold per warehouse. Online non-food orders on Black Friday exceeded $250 million, marking a record for Costco's U.S. e-commerce division. The retail giant continues to attract younger demographics, with nearly half of new members under the age of 40, which counters broader industry trends of declining in-store traffic. This trend suggests Costco's value proposition and operational strategies remain effective in engaging new and existing customers. Costco's stock experienced a slight dip in after-hours trading despite the strong quarterly results, reflecting market dynamics possibly linked to broader economic considerations. The company is also involved in legal actions challenging federal tariffs imposed on imported goods, which could impact its cost structure and profitability if resolved favorably. These developments indicate Costco's strategic positioning in balancing competitive pricing, product innovation, and e-commerce expansion while navigating regulatory challenges. The company’s financial outcomes and customer engagement metrics offer insight into retail sector adaptations amid shifting consumer preferences and economic conditions.