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<h2>Key Points</h2><ul><li>When evaluating the top line, Walmart generates significantly higher total revenue than Costco Wholesale across all measured historical periods.</li><li>Both companies demonstrate steady long-term growth trajectories alongside recurring quarter-over-quarter seasonal fluctuations that regularly impact their top-line results.</li><li>Both companies are placing greater emphasis on AI initiatives to drive efficencies and improve the customer experience.</li><li>Investors should closely monitor whether the absolute revenue gap between the two companies continues to steadily widen or starts to narrow in upcoming quarters.</li><li>10 stocks we like better than Walmart ›</li></ul><p>These retail rivals have similar margins, but different revenue and growth profiles. <strong>Walmart</strong> <span class="ticker">(NASDAQ:WMT)</span> enjoys far greater scale and revenue, and its stock has significantly outperformed <strong>Costco Wholesale</strong>’s <span class="ticker">(NASDAQ:COST)</span> over the last two years. This is despite Costco posting a 9.2% year-over-year increase in sales last quarter, higher than Walmart’s 5.6%.</p><p>But recent growth doesn’t tell the whole story. Both companies are investing in technology that could be a deciding factor in how these stocks perform over the next five years and beyond.</p><h2 id="walmart-maintaining-high-revenue-volumes">Walmart: Maintaining High Revenue Volumes</h2><p>Walmart primarily generates revenue through its massive global network of retail supercenters, warehouse clubs, and diverse e-commerce websites.</p><p>It recently announced a massive reinvestment plan to remodel hundreds of stores across multiple states. In the quarter that ended Jan. 31, 2026, it reported a net income margin of 2.3%.</p><h2 id="costco-wholesale-generating-steady-sales">Costco Wholesale: Generating Steady Sales</h2><p>Costco Wholesale<strong> </strong>primarily earns revenue by operating a wide network of membership warehouses that offer bulk branded and private-label merchandise to consumers.</p><p>While navigating several recent product recalls and ongoing class-action litigation, it implemented a nationwide rollout of membership-card scanners. For the quarter that ended Feb. 15, 2026, it reported a net income margin of 2.9%.</p><h2 id="why-revenue-matters-for-retail-investors">Why Revenue Matters for Retail Investors</h2><p>Revenue is the most fundamental measure of a company’s performance. Changes over time can tell investors how well the company is executing its growth strategy, including its efforts to reach new customers. It becomes a very useful measure for comparing companies in the same industry, like Walmart and Costco.</p>
<img alt="Walmart vs Costco Wholesale Revenue chart" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9jaGFydHMvcHJvZHVjdGlvbi9wcm9jZXNzZWQvd210LWNvc3QvcXVhcnRlci9yZXZlbnVlL2Jhci9wcmltYXJ5L3N0YW5kYXJkL2xpbWl0LTgvbGF0ZXN0L3dtdC1jb3N0X3F1YXJ0ZXJfcmV2ZW51ZV9iYXJfcHJpbWFyeV9zdGFuZGFyZF9saW1pdDgucG5nJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="525" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9jaGFydHMvcHJvZHVjdGlvbi9wcm9jZXNzZWQvd210LWNvc3QvcXVhcnRlci9yZXZlbnVlL2Jhci9wcmltYXJ5L3N0YW5kYXJkL2xpbWl0LTgvbGF0ZXN0L3dtdC1jb3N0X3F1YXJ0ZXJfcmV2ZW51ZV9iYXJfcHJpbWFyeV9zdGFuZGFyZF9saW1pdDgucG5nJnc9NzAw"/>
<p style="color: #666">Image source: The Motley Fool.</p>
<h2 id="quarterly-revenue-for-walmart-and-costco-wholesale">Quarterly Revenue for Walmart and Costco Wholesale</h2><section><table><tbody><tr><th>Quarter (Period End)</th><th>Walmart Revenue</th><th>Costco Wholesale Revenue</th></tr><tr><td>Q2 2024</td><td>$161.5 billion (period ended April 2024)</td><td>$58.5 billion (period ended May 2024)</td></tr><tr><td>Q3 2024</td><td>$169.3 billion (period ended July 2024)</td><td>$79.7 billion (period ended Sept. 2024)</td></tr><tr><td>Q4 2024</td><td>$169.6 billion (period ended Oct. 2024)</td><td>$62.2 billion (period ended Nov. 2024)</td></tr><tr><td>Q1 2025</td><td>$180.6 billion (period ended Jan. 2025)</td><td>$63.7 billion (period ended Feb. 2025)</td></tr><tr><td>Q2 2025</td><td>$165.6 billion (period ended April 2025)</td><td>$63.2 billion (period ended May 2025)</td></tr><tr><td>Q3 2025</td><td>$177.4 billion (period ended July 2025)</td><td>$86.2 billion (period ended Aug. 2025)</td></tr><tr><td>Q4 2025</td><td>$179.5 billion (period ended Oct. 2025)</td><td>$67.3 billion (period ended Nov. 2025)</td></tr><tr><td>Q1 2026</td><td>$190.7 billion (period ended Jan. 2026)</td><td>$69.6 billion (period ended Feb. 2026)</td></tr></tbody></table></section><p><em>Data source: Company filings. Data as of May 10, 2026.</em></p><h2 id="foolish-take">Foolish Take</h2><p>The revenue performance between these two competitors paints a clear contrast. While Walmart’s quarterly revenue is massive compared to Costco’s, Costco has consistently reported higher year-over-year growth. </p><p>But Costco’s superior quarterly growth hasn’t translated to better returns to shareholders. Walmart stock has outperformed Costco over the past two years, rising 115%, compared with Costco’s 30% return. </p><p>Looking forward, the better stock may be the one that can better leverage artificial intelligence (AI) and e-commerce investments to drive greater revenue growth and earnings. </p><p>Walmart has its AI shopping assistant, Sparky, that is already driving higher order values. Meanwhile, Costco is touting its digital investments, including AI, for driving meaningful improvements in checkout speed and employee productivity in the latest quarter.</p><p>The better stock over the next five years will likely center on each company’s ability to leverage technology to improve the customer experience and reduce operational costs. Watch to see if Costco can use its digital initiatives to not only close the revenue gap with Walmart, but potentially better earnings growth. </p><h2>Should you buy stock in Walmart right now?</h2>
<p>Before you buy stock in Walmart, consider this:</p>
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<p style="color: #767676; text-align: left"><em>*Stock Advisor returns as of May 19, 2026. </em></p><p><em>John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool has a disclosure policy.</em></p>
<p>The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.</p>
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<p>Walmart significantly outperforms Costco in total revenue, but Costco shows higher year-over-year growth. Both companies are investing in AI to enhance customer experience. Walmart's revenue for Q1 2026 was $190.7 billion, while Costco's was $69.6 billion. Despite Costco's recent growth, Walmart's stock has risen 115% over the past two years compared to Costco's 30%. Future performance may depend on how well each company leverages technology to drive revenue and earnings growth.</p>

- Walmart consistently generates higher revenue than Costco, with substantial growth in its revenue streams.  
- Both companies are investing in AI to enhance efficiency and customer experience, impacting their future performance.  
- Investors should monitor the revenue gap and performance as both retailers leverage technology for sustainable growth.

Walmart vs. Costco Wholesale: Comparing Revenue Scale and Consistency