Costco reports membership‑driven earnings growth as shares rise 2.6%

Costco Wholesale posted fiscal 2025 net sales of $269.9 billion with a low 11.1% gross margin, highlighting that its profitability hinges on membership fees rather than merchandise margins. Membership revenue reached $5.3 billion, up from $4.8 billion a year earlier, while the total paid‑member base grew to 81.0 million, with executive members increasing to 38.7 million.

In the first half of fiscal 2026, net sales rose 8.7% to $68.2 billion and membership fees jumped 13.8% to $1.36 billion, supporting a 12.3% rise in operating income. The strong fee growth and higher renewal rates reinforced Costco’s low‑price strategy and boosted investor confidence, sending the stock up 2.6%.

Separately, investment firm Gambit Capital Management acquired 715 Costco shares, a modest transaction that reflects continued interest in the retailer’s membership model.