Costco Q3 2025 Earnings Report

Introduction to Costco’s Quarterly Earnings

The sign on the side of a Costco is seen in Hawthorne, California, on April 4, 2025. Costco on Thursday posted quarterly earnings and revenue that topped estimates as its sales climbed 8%.

Quarterly Earnings and Revenue

Here’s how the warehouse club retailer did in its fiscal third quarter compared to what Wall Street was expecting:

• Earnings per share: $4.28 vs. $4.24 expected
• Revenue: $63.21 billion vs. $63.19 billion expected

Net Income and Revenue Growth

Costco’s net income for the three-month period that ended May 11 rose to $1.90 billion, or $4.28 per share, compared to $1.68 billion, or $3.78 a year earlier. Revenue rose from $58.52 billion in the year-ago period.

Impact of Tariffs on Costco

As tariffs raise economic worries, and potentially consumer prices, Costco could stand to benefit. Unpredictable tariff policy could help drive more customers to the warehouse club, which is known for its competitive prices and bulk discounts, and encourage them to renew membership. Its clubs also sell discounted gas and groceries, which are steadier traffic drivers even when consumers pull back on spending. And compared with some other retailers, Costco has a stronger hand in price negotiations with suppliers because of its large size.

CEO’s Perspective

On the company’s earnings call in March, CEO Ron Vachris said customers rely on Costco more in a challenging economy. "In uncertain times, our members have historically placed even greater importance on the value of high-quality items at great prices, and our teams will continue to rise to this challenge by leveraging our global buying power, strong supplier relationships and innovation," Vachris said at the time.

Imports and Tariff Effects

About a third of Costco’s U.S. sales are goods brought in from other countries, with less than half of those imports coming from China, Mexico, and Canada, Vachris said in March. Yet tariffs could also add expenses for Costco, which could mean higher prices for shoppers.

Industry Comparison

Earlier on Thursday, Best Buy CEO Corie Barry said the retailer had already raised prices on some consumer electronics because of tariffs. Cosmetics company E.l.f. Beauty announced a price increase on its makeup last week. And Walmart CFO John David Rainey warned earlier this month that higher prices were coming to the discounter’s stores and website in late May or June.

Stock Performance

As of Thursday’s close, shares of Costco are up about 10% so far this year. That has outpaced the S&P 500’s less than 1% gains during the same period.

Conclusion

Costco’s quarterly earnings and revenue have topped estimates, with an 8% climb in sales. The company’s ability to negotiate prices with suppliers and its focus on value could help it navigate the challenges posed by tariffs. However, the impact of tariffs on consumer prices remains a concern.

FAQs

• Q: How did Costco perform in its fiscal third quarter?
  A: Costco posted quarterly earnings and revenue that topped estimates, with sales climbing 8%.
• Q: What is the impact of tariffs on Costco?
  A: Tariffs could drive more customers to Costco due to its competitive prices, but may also add expenses and lead to higher prices for shoppers.
• Q: How does Costco’s performance compare to the industry?
  A: Costco’s stock is up about 10% this year, outpacing the S&P 500’s gains, while other retailers like Best Buy and Walmart have announced price increases due to tariffs.
• Q: What did Costco’s CEO say about the company’s strategy?
  A: CEO Ron Vachris said customers rely on Costco more in challenging economic times and that the company will continue to leverage its global buying power and strong supplier relationships to offer value to its members.