By Teresa Rivas

Costco Wholesale is the last major retailer to report results this earnings season. After multiple retailers noted, however cautiously, that consumers are still spending, investors will be looking to see if Costco does the same.

For its fiscal third quarter, Costco is expected to earn $4.98 a share, a 16.3% increase from the year-ago period, on a 10% rise in revenue to $69.68 billion. The company's most recent earnings, reported in March, beat expectations. It is scheduled to report results after the market close Thursday.

Warehouse clubs like Costco have boosted their value bona fides during the inflation era, and data from Placer.ai show that both overall visits and same-store visits (which typically measure locations open at least a year) were up every month from November through April at Costco. The spike in gas prices is likely part of the uptick in visits, as Walmart noted on its conference call.

Costco also tends to cater to a generally higher income shopper, which has been less stressed by rising prices.

A good quarter might not be good enough, though, given Costco stock's strong run and lofty valuation. Costco shares have jumped nearly 17%, ahead of the S&P 500, since the start of 2026, reaching new all-time highs. Shares of its rival BJ's fell despite a solid earnings report last week. However, Costco stock has sold off over the past week, which could take some pressure off the results.

The company raised its dividend in April, and some strategists see the potential for a special dividend on the horizon, as the Costco dukes it out with the government over tariffs.

Aside from the health of the consumer, perhaps the most pressing question on investors' minds could be around the state of its famous hot dog combo.

Write to Teresa Rivas at teresa.rivas@barrons.com

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May 28, 2026 01:30 ET (05:30 GMT)

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