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Costco's Q3 revenue beats expectations; membership growth seen as a strong moat despite high valuation.

Company Fundamentals
29 May 2026
Seeking Alpha
View Source
Bullish
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Costco reported Q3 revenue of $70.5 billion, beating expectations, with a 15.2% EPS growth despite a slight miss. Membership income rose 10.7%, driven by a subscription model with low churn and high renewal rates, creating a strong and growing moat comparable to Amazon Prime. Despite a high forward P/E of 53x, this premium reflects the value of Costco's intangible assets and subscription business stability. The article argues that Costco remains a bullish investment due to its unique and expanding competitive advantage.

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