Costco’s Membership Boom and Soaring Sales Defy Market Expectations
Costco continues to show strong growth as its membership numbers and sales figures climb. The retail giant now holds 81.4 million membership accounts, marking a 5.2% rise from the previous year. Recent financial performance and market trends suggest the company remains a dominant force in the sector.
The company’s stock has performed well over the long term, with a compound annual growth rate of 20% across the past decade. Currently trading at $954 per share, analysts believe a 5% increase would push it past the $1,000 mark. Their consensus price target stands at $1,033, implying an 8% upside from today’s level.
Costco’s same-store sales rose by 7% in December 2025, building on earlier gains of 5.9% in fiscal 2025 and 5.3% in fiscal 2024. The company’s premium valuation is reflected in its price-to-earnings ratio of 51, well above the broader market average. Meanwhile, analysts project revenue and earnings per share to grow by 8% and 11%, respectively, between fiscal 2025 and 2026.
The Federal Reserve’s recent shift toward rate cuts and quantitative easing has added to positive market sentiment. Costco’s strong brand recognition and cost advantages further solidify its position as a retail leader, even as the S&P 500 averages a 10% annualised return.
With steady membership growth and rising sales, Costco maintains its upward trajectory. The company’s stock performance and analyst forecasts point to continued expansion in the coming years. Investors and industry watchers will likely keep a close eye on its next financial updates.
