Don't Overlook Costco (COST) International Revenue Trends While Assessing the Stock

Did you analyze how Costco (COST) fared in its international operations for the quarter ending November 2025? Given the widespread global presence of this warehouse club operator, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.While delving into COST's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.The company's total revenue for the quarter amounted to $67.31 billion, showing rise of 8.3%. We will now explore the breakdown of COST's overseas revenue to assess the impact of its international operations.A Closer Look at COST's Revenue Streams AbroadDuring the quarter, Other International contributed $9.67 billion in revenue, making up 14.4% of the total revenue. When compared to the consensus estimate of $9.58 billion, this meant a surprise of +0.87%. Looking back, Other International contributed $12.03 billion, or 14%, in the previous quarter, and $8.66 billion, or 13.9%, in the same quarter of the previous year.Of the total revenue, $9.07 billion came from Canada during the last fiscal quarter, accounting for 13.5%. This represented a surprise of -0.81% as analysts had expected the region to contribute $9.15 billion to the total revenue. In comparison, the region contributed $11.9 billion, or 13.8%, and $8.4 billion, or 13.5%, to total revenue in the previous and year-ago quarters, respectively.Revenue Projections for Overseas MarketsWall Street analysts expect Costco to report $68.75 billion in total revenue for the current fiscal quarter, indicating an increase of 7.9% from the year-ago quarter. Other International and Canada are expected to contribute 14.8% (translating to $10.2 billion), and 13.4% ($9.19 billion) to the total revenue, respectively.For the full year, the company is expected to generate $295.98 billion in total revenue, up 7.5% from the previous year. Revenues from Other International and Canada are expected to constitute 14.2% ($41.99 billion), and 13.6% ($40.29 billion) of the total, respectively.Final ThoughtsCostco's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.Currently, Costco holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .Examining the Latest Trends in Costco's Stock ValueThe stock has witnessed a decline of 4% over the past month versus the Zacks S&P 500 composite's an increase of 2.5%. In the same interval, the Zacks Retail-Wholesale sector, to which Costco belongs, has registered an increase of 3.9%. Over the past three months, the company's shares saw a decrease of 9.1%, while the S&P 500 increased by 2.4%. In comparison, the sector experienced a decline of 3.5% during this timeframe.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 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