--- title: "Costco's earnings are due. The bar for growth is higher this time around." description: "Costco is set to report its quarterly earnings, with analysts divided on growth potential. While some see limited upside, others believe the company is regaining momentum. Analysts expect adjusted ear" type: "news" locale: "en" url: "https://longbridge.com/en/news/258751516.md" published_at: "2025-09-24T18:28:00.000Z" --- # Costco's earnings are due. The bar for growth is higher this time around. > Costco is set to report its quarterly earnings, with analysts divided on growth potential. While some see limited upside, others believe the company is regaining momentum. Analysts expect adjusted earnings per share of $5.80 and revenue of $86.01 billion for the fourth quarter. Recent strategies, like extended shopping hours for Executive members, have improved customer experience. Despite challenges, Costco's strong customer loyalty and supply chain capabilities position it well for future growth, although stock valuation remains a concern. By Bill Peters Some analysts see 'limited' upside. Others say 'the bulls are regaining control.' Costco's stock is up around 3% so far this year. As Costco Wholesale Corp. prepares to report quarterly results on Thursday, Wall Street analysts generally have had nice things to say about the membership warehouse retailer. But some still have questions about how long the company can keep investors happy as it runs up against a higher bar for growth. The chain over the past few years has found ways to keep prices lower and draw more customers, even as inflation and worries about tariffs keep budgets tighter. But after bigger run-ups in previous years, Costco shares (COST) are only up around 3% so far this year. "Near term, we see limited \[earnings-per-share\] upside potential, and COST is up against very difficult comparisons in the nonfoods category," Oppenheimer analysts said in a research note last week. They noted that Costco's stock has fallen following four of its past six earnings reports. What to expect Earnings: Analysts polled by FactSet expect Costco to report adjusted earnings per share of $5.80 for its fiscal fourth quarter. Sales: Wall Street expects $86.01 billion in fourth-quarter revenue, with a 5.9% same-store sales gain. However, Costco has already reported monthly sales for June, July and August; those results showed solid gains, staving off some worries about a slowdown. What analysts are saying Regardless, UBS analysts last month said judging Costco on a month-to-month basis was the wrong way to look at the company. While they said Costco wasn't benefiting as much from sales of things like gold bars, which were a hit last year, it had been able to find new ways every month - like leaning on cellphones or gift cards - to drive sales. According to retail-analytics firm Placer.ai, Costco's decision this summer to begin allowing its Executive members an extra hour of shopping time also appears to have helped shoppers and the company, leading to more earlier visits and keeping stores less crowded later in the day. "Shoppers using early access seem to shop more efficiently, with Costco seeing a rise in 30-45 minute visits and a drop in 45-60 minute visits following the implementation of the extended hours," the firm said. "The policy improved customer experience without requiring additional staff, highlighting the impact of data-driven scheduling," it added. Even as Costco's share gains ease, the Oppenheimer analysts said any dips could represent longer-term buying opportunities, and said investors who were optimistic on the stock could still benefit from "short-term bumps." Still, they noted, the extra hour for Executive members would push the company's costs higher. Raymond James analysts, in a research note on Monday, also said that Costco's stock valuation was "challenging versus historical standards." But they said customer loyalty to the chain remained one of its primary strengths. "In addition, Costco's supply-chain capabilities, strong vendor relationships and pricing discipline leave it better positioned than most to navigate any tariff-related pressures," the Raymond James analysts said. "Importantly, in a potentially more inflationary environment, the club model's value proposition and scale advantage could become even more compelling to consumers." Or, as J.P. Morgan analysts put it in a note this month: "We believe the bulls are regaining control." \-Bill Peters This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal. ### Related Stocks - [COST.US - Costco Wholesale](https://longbridge.com/en/quote/COST.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | Costco Ties European Delivery Push To Tighter Membership Food Court Perks | Costco Wholesale has expanded same-day delivery to France and Spain via Instacart, while tightening food court access fo | [Link](https://longbridge.com/en/news/275753279.md) | | Wulff Hansen & CO. Trims Stake in Costco Wholesale Corporation $COST | Wulff Hansen & CO. has reduced its stake in Costco Wholesale Corporation by 43.4% in the third quarter, now holding 2,03 | [Link](https://longbridge.com/en/news/275978833.md) | | Shell Asset Management Co. 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