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Costco posts strong Q4 with 11.2% revenue and 15% EPS growth but valuation limits upside

Company Fundamentals
25 Sep 2026
Seeking Alpha
View Source
Neutral
Costco posts strong Q4 with 11.2% revenue and 15% EPS growth but valuation limits upside

Costco Wholesale reported a robust Q4, achieving 11.2% revenue growth and 15% earnings per share growth, reinforcing its status as a reliable long-term compounder. The company’s disciplined approach to warehouse expansion and strong membership growth underpin its stable outlook. However, a discounted cash flow analysis suggests the stock is overvalued by about 32% compared to its current market price, even after recent corrections. Despite excellent results, the market already prices in strong growth, so the analyst maintains a 'Sell' rating due to limited upside and risk of negative surprises.

Costco trades at USD 895.02 on Pluang as of Sep 25, 2026 13:41 WIB, slightly down 0.16% for the day. The stock holds a market cap of $398.87B and a dividend yield of 0.65%. Pluang users show a majority sell interest at 62%, reflecting cautious sentiment despite the company’s strong fundamentals.

More News (COST)

Costco beats Q4 EPS estimates with $6.75 despite slight revenue miss, driven by strong sales growth and tariff refunds.

Costco beats Q4 EPS estimates with $6.75 despite slight revenue miss, driven by strong sales growth and tariff refunds.

Costco reported a strong Q4 earnings per share (EPS) of $6.75, surpassing analyst expectations of $6.54, helped by tariff refunds. Although quarterly revenue of $93.87 billion slightly missed the $94.97 billion forecast, net sales rose 11.2% year-ove...

Company Fundamentals
Bullish
12 hours ago
Costco stock could rise 28% to $1,150 by 2027 driven by strong membership growth and digital sales.

Costco stock could rise 28% to $1,150 by 2027 driven by strong membership growth and digital sales.

Costco's stock has underperformed recently but the company continues to show strong fundamentals, including consistent earnings beats and growing membership fees. Analysts project revenue growth to $326.6 billion by fiscal 2027, with a consensus pric...

Analyst Insights
Bullish
20 hours ago
Costco reports strong Q4 sales growth ahead of full earnings release on Sept 24

Costco reports strong Q4 sales growth ahead of full earnings release on Sept 24

Costco Wholesale announced $93.9 billion in net sales for its fiscal Q4, up 11.3% from last year, with comparable sales rising 9.4%. The full earnings report on September 24 will reveal membership fees, total revenue, expenses, and profit details. An...

Company Fundamentals
Neutral
1 day ago
Walmart, Target, and Costco show mixed technical signals amid earnings and market shifts.

Walmart, Target, and Costco show mixed technical signals amid earnings and market shifts.

Walmart shares are attempting a rebound but face resistance near key moving averages after a recent drop around earnings, reflecting broader sector concerns about rising interest rates and consumer impact. Target shows a bullish technical pattern sug...

Technical Signals
Bullish
2 days ago
Costco's strong membership model drives steady profits and hints at a special dividend ahead of its key quarter.

Costco's strong membership model drives steady profits and hints at a special dividend ahead of its key quarter.

Costco operates a membership-driven business model that generates predictable and growing cash flow, with renewal rates above 92% and nearly $9 billion in gross membership income. This stable profit base is expected to accelerate into fiscal year 202...

Company Fundamentals
Bullish
3 days ago
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