Costco Q4 Revenue Hits $95.7B as E-Commerce Surge Offsets Tariff Refund Impact

Key points

• Costco's fourth-quarter revenue reached $95.7 billion, surpassing market expectations.
• E-commerce sales experienced a massive surge, contributing to the strong performance.
• The company noted a non-recurring benefit from IEEPA tariff refunds in the quarter, which partially offset increased investments in member value.
• Costco shares increased by 2.93% to close at $922.77, reflecting positive market sentiment.
• The results follow a fiscal year 2026 where net sales totaled $297.2 billion and digital sales grew 20.9%.

Background

Costco recently shut down its Costco Next online marketplace in early September 2026, a program that allowed members to buy discounted items from partner vendors. This closure occurred shortly before the company reported its fiscal 2026 results, which showed net sales of $297.2 billion and a 20.9% increase in digital sales. The current quarter's performance highlights the continued strength of Costco's core e-commerce operations despite the discontinuation of the third-party marketplace.

Why it matters

Costco's ability to beat estimates despite the absence of the Costco Next marketplace and the presence of non-recurring tariff refunds underscores the resilience of its core business model. The surge in e-commerce sales indicates a successful transition of digital growth from third-party partnerships to direct sales, which is critical for maintaining margins and member engagement in a competitive retail landscape.

What to watch

Investors will monitor how the discontinuation of Costco Next affects long-term digital growth rates and whether the current e-commerce surge can sustain momentum in the next quarter. The company's ability to manage member value investments while maintaining profitability will be a key focus for upcoming earnings reports.