Costco Wholesale delivered a resilient QQ3 2025 performance with a reported revenue of $63.205 billion, up 8.02% year-over-year and a slight QoQ decline of 0.81%. The gross profit totaled $8.209 billion, yielding a gross margin of approximately 12.99%, with operating income of $2.53 billion and an operating margin near 4.00%. Net income was $1.903 billion and earnings per diluted share $4.28–$4.29, reflecting a double-digit percentage improvement versus the prior-year period. The quarter benefited from steady traffic, favorable product mix, and ongoing productivity initiatives that supported earnings growth despite modest sequential topline pressure.
Costco’s balance sheet remains highly robust. Total assets stand at $75.48 billion against $48.36 billion in liabilities and $27.13 billion in shareholders’ equity, yielding a liquidity profile underpinned by $13.84 billion in cash and equivalents and $1.01 billion in short-term investments (cash and short-term investments of $14.85 billion). Net debt is negative (net cash) at approximately $(5.66) billion, reflecting substantial liquidity to fund capex, dividends, and potentially selective share repurchases. Free cash flow for the period was $2.329 billion, supported by operating cash flow of $3.46 billion and capital expenditures of $1.131 billion. Management’s disciplined capital allocation, including a $0.211 billion net share repurchase and $0.515 billion in dividends, reinforces Costco’s ability to return capital while maintaining a strong balance sheet.
Looking forward, the company benefits from a persistent membership-driven model, ongoing cost-control measures, and the potential for continued strength in non-food categories and international markets. However, near-term inputs such as wage costs, currency effects in international operations, and broader macro consumer demand will influence margin trajectory and growth rates. Overall, Costco’s QQ3 2025 results reinforce its position as a cash-flow-generative, defensively positioned retailer with ample financial flexibility to invest in growth and return capital to shareholders.