Issue 002 · COST · FY2026
Costco
Almost all of the revenue is merchandise. A small, recurring fee sits next to a thin warehouse margin.
50.6%
Membership fees ($5.9B) divided by operating income ($11.7B). That is a comparison of a revenue line to a profit line, not a share-of-profit allocation, and not a claim that fees are “pure profit.”
Figure 01
Membership fees, FY2022–FY2026
Membership fees USD billions. Two display decimals on this series.
| Series | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Membership fees | $4.22B | $4.58B | $4.83B | $5.32B | $5.91B |
Fees rose 39.8% from FY2022 to FY2026. The FY2026 10-K attributes the latest increase to new sign-ups, fee increases, and Executive upgrades. Fee revenue is recognized ratably over the membership year, net of refunds — not cash collected, and not member growth by itself.
Source: Form 10-K, FY2026 Consolidated Statements of Income; FY2022–FY2023 from FY2024 10-K. Comparative filing: https://www.sec.gov/Archives/edgar/data/909832/000090983224000049/cost-20240901.htm www.sec.gov/Archives/edgar/data/909832/000090983226000093/cost-20260830.htm
Figure 02
Fees in the mix
Share of total revenue Share of total revenue, percent. Derived.
| Series | Membership fees | Net sales |
|---|---|---|
| Share of total revenue | 1.9% | 98.1% |
Total revenue was $303.2B. Membership fees were 1.9% of that; net sales were 98.1%. The warehouse is the volume. The card is the quiet line.
Source: Form 10-K, FY2026 Consolidated Statements of Income. www.sec.gov/Archives/edgar/data/909832/000090983226000093/cost-20260830.htm
Figure 03
Merchandise gross margin
Dollars per $100 of net sales Per $100 of net sales. Derived from net sales and merchandise costs.
| Series | Merchandise cost | Merchandise gross margin |
|---|---|---|
| Dollars per $100 of net sales | 88.91 | 11.09 |
Merchandise gross margin is 11.09% of net sales (the filing prints 11.09%). It is computed on net sales, not total revenue, and it excludes membership fees. Costco’s MD&A reports the same FY2026 rate.
Source: Form 10-K, FY2026 Item 7, Gross Margin, and Consolidated Statements of Income. www.sec.gov/Archives/edgar/data/909832/000090983226000093/cost-20260830.htm
Figure 04
Paid members
Paid members Millions. Company-reported operating metric.
| Series | FY24 | FY25 | FY26 |
|---|---|---|---|
| Paid members | 76.2 | 81.0 | 84.1 |
84.1 million paid members at FY2026 year-end. The filing’s count includes some memberships that have expired and not yet renewed; it is not strictly active households. Reported renewal: 92.3% in the U.S. and Canada, 89.8% worldwide. Warehouses: 939 at year-end.
Source: Form 10-K, FY2026 Item 1, Membership, and Item 7, Membership Fees. www.sec.gov/Archives/edgar/data/909832/000090983226000093/cost-20260830.htm
Figure 05
Segment revenue, FY2026
USD billions. Includes membership fees.
| Category | Value |
|---|---|
| U.S. & Puerto Rico | $219.8B |
| Canada | $40.6B |
| Other International | $42.8B |
The three segments sum to total revenue. U.S. includes Puerto Rico. 72.5% of FY2026 revenue sat in that segment.
Source: Form 10-K, FY2026 Note 11, Segment Reporting. www.sec.gov/Archives/edgar/data/909832/000090983226000093/cost-20260830.htm
Figure 06
Cash returned
Repurchases of common stock Cash dividend payments USD billions. FY2024 dividends include a $15 special dividend.
| Series | FY24 | FY25 | FY26 |
|---|---|---|---|
| Repurchases of common stock | $0.70B | $0.90B | $0.85B |
| Cash dividend payments | $9.04B | $2.18B | $2.46B |
FY2024 dividend cash includes a $15 per share special dividend ($6.655B). That amount is already inside the $9.041B line; it is not added again. No FY2026 special dividend is claimed. Cash-flow repurchase figures are used rather than the equity-note program table, which the filing notes can differ by timing.
Source: Form 10-K, FY2026 Consolidated Statements of Cash Flows; Note 6, Equity, Dividends. www.sec.gov/Archives/edgar/data/909832/000090983226000093/cost-20260830.htm
No affiliation with Costco, no price target, no recommendation. Membership operating profit is not a disclosed line.