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Costco’s Margin Squeeze — Gasoline, E-Commerce & Pharmacy Mix Hit Profitability!

Costco Wholesale Corporation reported its financial results for the third quarter of fiscal 2026, ending May 10, 2026, reflecting a combination of growth drivers and margin pressures amid a complex macroeconomic environment. The company saw net income rise by 15% year-over-year to $2.192 billion, or $4.93 per diluted share, supported by an 11.6% increase in net sales to $69.15 billion. Comparable sales growth stood at 9.8%, with a 6.6% increase after adjusting for gasoline price inflation and foreign exchange impacts. Excluding gas sales and currency effects, comparable sales also increased by 6.6%. Growth was bolstered by a record-breaking performance in the gasoline segment, driven by heightened consumer price sensitivity amid Middle East-related supply disruptions, which resulted in successive volume sales records.