:max_bytes(150000):strip_icc()/GettyImages-2207949971-5d4cfef7fd374f3a9774820e31882065.jpg "Costco Stock: Analyst Ratings & Earnings Preview")
Costco Stock: Analyst Ratings & Earnings Preview
- Costco Wholesale (COST) is scheduled to announce its fiscal third-quarter results after trading concludes Thursday.
- Of the analysts surveyed by Visible Alpha, 10 rate Costco as a "buy," while six recommend a "hold." The average price target is $1,058.40, representing a potential 5%...
- The consensus forecast anticipates an 8% increase in Costco's sales compared to the same period last year,reaching $63.19 billion.
Anticipate Costco’s Q3 2025 earnings: analysts predict robust growth fueled by membership fees and strategic tariff management. Most experts rate the Costco stock as a “buy,” while expecting limited price movement despite strong sales forecasts, anticipating roughly $63.19 billion in revenue. UBS highlights Costco’s proactive approach to navigating economic hurdles, particularly concerning tariffs. Membership growth, reaching almost 80 million, remains a crucial factor in Costco’s profitability. This news, as presented by News Directory 3, underscores the company’s strong position. Discover what’s next for Costco Wholesale and its investors.
Costco Wholesale Expected to Post Solid Q3 Earnings
Updated May 26,2025
Costco Wholesale (COST) is scheduled to announce its fiscal third-quarter results after trading concludes Thursday. Analysts are generally optimistic about the company’s prospects, though important stock price gratitude is not widely anticipated.
Of the analysts surveyed by Visible Alpha, 10 rate Costco as a “buy,” while six recommend a “hold.” The average price target is $1,058.40, representing a potential 5% increase from Friday’s closing price, but still shy of the record closing price of nearly $1,077 recorded Feb. 13.
The consensus forecast anticipates an 8% increase in Costco’s sales compared to the same period last year,reaching $63.19 billion. Earnings per share are projected to rise by 14% to $4.31. Membership is also expected to grow, with the retailer reporting 79.6 million paying members,up from 78.4 million in the previous quarter. Costco’s membership fees are a key driver of profitability.
UBS analysts believe Costco is well-positioned to navigate macroeconomic uncertainties due to its ability to quickly adapt its product offerings. The company can discontinue products that are no longer profitable due to tariffs and replace them with alternatives.
Company executives anticipate that the recent membership fee increase,implemented at the beginning of the fiscal year in September,will positively impact profits in the second half of fiscal 2025 and into fiscal 2026. Analysts note that high-margin membership revenue should provide Costco with greater adaptability to absorb tariff impacts without raising prices for consumers. This effective tariff management is key to maintaining customer loyalty.
“There’s probably not a lot that can come from this print that will change the market’s perception that [Costco] is a good place to be,” UBS analysts wrote. “Though, its superior position, levers, and capabilities to manage the upcoming headwinds will probably be more evident as the impact of tariffs become translucent in the coming months.”
Costco shares are up approximately 10% year-to-date in 2025, despite some volatility.
What’s next
Investors will be watching closely to see if Costco’s earnings report confirms analysts’ positive outlook and demonstrates the company’s ability to manage costs and maintain growth in a challenging economic environment.