Retailer Costco Wholesale Corporation (NASDAQ:COST) could highlight record holiday sales and comment on the Supreme Court tariff ruling when the company reports second-quarter financial results Thursday after market close.
Here are the earnings estimates, analyst ratings and key items to watch.
• Costco Wholesale stock is showing positive momentum. What’s the outlook for COST shares?
Costco Q2 Earnings Estimates
Analysts expect Costco to report second-quarter revenue of $69.28 billion, up from $63.72 billion in last year's second quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in five straight quarters and in eight of the past 10 quarters overall.
Analysts expect Costco to report second-quarter earnings per share of $4.54, up from $4.02 in last year's second quarter.
The company has beaten analyst estimates for earnings per share in three straight quarters and in nine of the past 10 quarters overall.
Costco Analyst Ratings and Comments
Bank of America Securities analyst Christopher Nardone said Costco is "well-positioned" in the K-shaped economy that is happening now in a recent investor note.
The analyst highlighted the appeal of Costco to both value-focused consumers and higher-income shoppers.
Nardone said Costco stands out in the retail sector with its private label Kirkland brand that allows the retailer to enhance supplier leverage and protect margins.
The analyst has a Buy rating on Costco with a price target of $1,185.
JPMorgan analyst Christopher Horvers recently reiterated an Overweight rating on Costco with a price target of $1,000.
The analyst said the retailer is likely gaining market share in several categories with strong traffic trends.
Horvers highlighted the company's recurring revenue model of membership fees, strong pricing power and rising e-commerce profitability.
Here are other recent analyst ratings for Costco and their price targets:
- Evercore ISI Group: Maintained Outperform rating, raised price target from $1,025 to $1,050
- DA Davidson: Maintained Neutral rating, with price target of $1,000
- Wells Fargo: Maintained Equal-Weight rating, raised price target from $900 to $950
Key Items to Watch in Costco's Q2 Results
Among the big topics that could be covered in Thursday's results and management commentary could be the Supreme Court ruling against President Donald Trump's tariffs.
Costco was one of the first American companies to file a lawsuit against the tariffs, asking for money back on the fees previously collected. The company could share details of the victory and the timetable for a potential refund.
Costco's second fiscal quarter includes the full months of December and January, along with a portion of November and February. The first quarter ended on Nov. 23, just shy of Thanksgiving Day (Nov. 27).
The retailer previously highlighted several records set around Thanksgiving, including a record number of pies (4.5 million) sold in the three days before Thanksgiving 2025. This figure was up around 500,000 pies from 2024.
While the revenue from pies could be low compared to the overall results, the record could indicate strong traffic and purchases in stores around the holiday.
Costco also said it saw a record Black Friday for e-commerce with more than $250 million in non-food online orders.
Recent reports from Costco have pointed to strong monthly sales in December and January.
In December, total sales were $29.86 billion, up 8.5% year-over-year. Total comparable sales were up 7.0%, with U.S. comps up 6.0% for the month.
In January, total sales were $21.33 billion, up 9.3% year-over-year. Total comparable sales were up 7.1%, with U.S. comps up 5.8% for the month.
Costco's earnings report could put sectors like retail and consumer staples in the spotlight and also make ETFs that cover the sectors volatile.
Costco is the second-largest holding at 9.28% in the SPDR Consumer Staples Sector ETF (NYSE:XLP), trailing only Walmart (11.66%).
Costco Stock Price Action
Costco stock is up 0.22% to $1,009.78 on Wednesday versus a 52-week trading range of $844.06 to $1,067.08. Costco shares are up 17.4% year-to-date in 2026, but remain down 3.3% over the last 52 weeks.
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