Costco Q4 Sales Hit $84.4B: What's Fueling the 8% Revenue Growth?

Costco Wholesale Corporation COST reported a robust financial performance for its fourth quarter of fiscal 2025 with net sales reaching $84.4 billion, an 8% increase from $78.2 billion last year. This growth was supported by strong comparable sales gains across multiple regions and a notable contribution from e-commerce channels.Comparable sales for the quarter rose 5.7%, reflecting a 5.1% gain in the United States, a 6.3% increase in Canada and a solid 8.6% rise in other international markets. When excluding the impacts of changes in gasoline prices and foreign exchange, total comparable sales rose 6.4%. Canada led with an 8.3% increase, followed by 7.2% growth in other international markets and 6% jump in the U.S market. This highlights Costco’s ability to deliver consistent gains despite currency headwinds and uneven macroeconomic conditions.E-commerce continued to stand out with comparable sales climbing 13.6% for the quarter, or 13.5% after adjusting for fuel and currency impacts. Momentum was even stronger in August, when the metric surged 18.4%. For the fiscal year, e-commerce comparable sales climbed 15.6%, reinforcing the importance of the company’s investments in omnichannel capabilities.At quarter-end, Costco operated 914 warehouses globally, including 629 in the United States and Puerto Rico and 110 in Canada, along with a growing presence in markets such as Mexico, Japan and the United Kingdom.A blend of steady traffic at physical locations, solid international growth and accelerating e-commerce sales powered Costco’s fourth-quarter revenue gains. These factors combined to deliver an 8.1% increase in net sales of $269.9 billion for the fiscal year despite a challenging economic environment.Walmart and Target’s Trends Offer Industry ContextWalmart Inc. WMT continued to deliver steady traffic gains with U.S. comparable sales rising 4.6% in the second quarter of fiscal 2026, supported by strength in grocery, health & wellness, and improving trends in general merchandise. E-commerce momentum remained strong as U.S. e-commerce sales advanced 26%, powered by nearly 50% growth in store-fulfilled delivery orders, with roughly one-third completed within three hours.Target Corporation TGT showed early signs of stabilization following a challenging first quarter of fiscal 2025. While second-quarter sales dipped 0.9% year over year, in-store traffic trends improved significantly. Digital performance was also a bright spot, with comparable digital sales growing 4.3%, driven by robust same-day delivery offerings and expanding Drive Up services.What the Latest Metrics Say About CostcoCostco stock has risen 7.5% over the past year, outpacing the industry’s growth of 6.9%.  Image Source: Zacks Investment ResearchFrom a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 48.45, higher than the industry’s ratio of 30.80. COST carries a Value Score of D. Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 8.1% and 11.6%, respectively.  Image Source: Zacks Investment ResearchCostco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Target Corporation (TGT): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks