Costco posts strong Q3 earnings and sees mixed investor moves amid valuation debate

Costco Wholesale reported fiscal third‑quarter results with revenue of roughly $70 billion, surpassing analysts’ expectations. Same‑store sales rose between 6.6% and 9.8% depending on the measure, driven by robust e‑commerce growth (digital revenue up 21.5%) and record gasoline volumes. Membership revenue jumped 10.7% to $1.37 billion, with paid memberships reaching 82.9 million households and executive memberships at 41.2 million. The retailer opened four new warehouses and plans 12 more, bringing its global count to 928 locations.

Investor activity was mixed. Birinyi Associates trimmed its Costco stake by 63.4% to 1,150 shares worth about $992 k, while other funds such as Hurley Capital and Entrust Financial increased their holdings. Analysts raised price targets, with consensus rating a “moderate buy” and an average target near $1,056 per share. The company also noted plans to return U.S. tariff revenues.

Overall, Costco’s strong sales and membership performance underline its recession‑resistant model, but a high forward P/E ratio keeps valuation concerns alive among investors.