Overview
- Citi raised its Costco price target to $1,000 with a Neutral rating, and Evercore ISI lifted its target to $1,050 with an Outperform rating after what they called a modest fiscal Q2 beat.
- January net sales reached $21.33 billion, up 9.3% year over year, with adjusted comparable sales up 7.5% and online sales surging more than 34% during the holiday period.
- Membership economics stayed robust in fiscal Q1 2026 as fee income rose 14% to $1.329 billion, paid members increased 5.2% to 81.4 million, and Executive memberships grew 9.1% to 39.7 million.
- Growth in warehouses and cardholders continued into Q1 2026, but the global renewal rate slipped to 89.7% and the company cautioned that digitally signed members are renewing at slightly lower rates.
- Shares trade at roughly 49 times this year’s earnings and remain below Wall Street’s average $1,062 target and top $1,205 target, leaving the outlook sensitive to renewal stabilization and any shift in valuation multiples.