Costco (NASDAQ:COST) delivered a robust Q3 beat, with net sales up 8% to $61.96 billion and EPS soaring to $4.28 from $3.78 a year ago. Costco’s scale helped absorb tariff and inflation headwinds, driving an 8.1% gain in adjusted comps and widening its pricing lead over grocery and convenience peers.
Morgan Stanley’s Simeon Gutman lifted his Overweight target to $1,225, praising the share gains and scale leverage. Oppenheimer’s Rupesh Parikh called the results unsurprising but said they reinforce confidence in Costco’s ongoing outperformance, flagging a potential stock split as a near-term catalyst.
UBS’s Michael Lasser highlighted the chain’s consistency and execution, while Jefferies’ Corey Tarlowe pointed to pilot programs like Scan-and-Go as proof of Costco’s tech edge.
Investors should care because Costco’s ability to pass through costs without denting traffic underscores its membership moat and sets the stage for continued market-share gains even in a tougher consumer backdrop.
This article first appeared on GuruFocus.
DJ Kamal Mustafa
I’m DJ Kamal Mustafa, the founder and Editor-in-Chief of EMEA Tribune, a digital news platform that focuses on critical stories from Europe, the Middle East, Africa, and Pakistan. With a deep passion for investigative journalism, I’ve built a reputation for delivering exclusive, thought-provoking reports that highlight the region’s most pressing issues.
I’ve been a journalist for over 10 years, and I’m currently associated with EMEA Tribune, ARY News, Daily Times, Samaa TV, Minute Mirror, and many other media outlets. Throughout my career, I’ve remained committed to uncovering the truth and providing valuable insights that inform and engage the public.
