COST changes
Pick any two versions below to diff them.
- Balance sheet
- Costco has a net cash balance sheet and uses very little debt. At August 30, 2026, cash and short-term investments were $21.3 billion, against $6.2 billion of long-term debt. $2.25 billion of senior notes matures in May and June 2027. Net cash was about $15.1 billion, before about $2.4 billion of long-term operating lease liabilities. In fiscal 2026, operating income of $11.7 billion covered interest expense of $145 million about 80 times. Much of the cash comes from how the business works. Accounts payable of $22.6 billion were larger than inventory of $19.3 billion, so suppliers fund the stock on the shelves. Members also pay $3.0 billion of fees in advance. S&P rates Costco AA with a stable outlook, raised from A+ in January 2025. In fiscal 2026, operating cash flow was $15.8 billion. It paid for $6.4 billion of capital spending, $2.5 billion of regular dividends and $0.8 billion of buybacks. The cash pile still grew by $6.0 billion. This large surplus gives room for another special dividend or more stores. Costco has paid special dividends from such surpluses before, most recently $12 per share in January 2026. As of 2026-08-30.
- Checkpoints
- Nov 2026 (estimate): October sales report: comparable sales without gasoline. Pending. Watch: US comparable sales growth excluding gasoline and currency that stays in the mid-single digits or higher passes; a clear slowdown once the gasoline price boost fades fails. Dec 24, 2026 (estimate): Q1 fiscal 2027 earnings: renewals, margins, tariffs. Pending. Watch: Worldwide renewal rate near 90% and membership fee growth with stable gross margin despite tariffs pass; falling renewal rates or a margin squeeze from absorbed tariffs fail. Jan 2027 (estimate): Buyback authorization expires; new capital return decision. Pending. Watch: A new buyback authorization or a special dividend paid from the net cash passes; no new program while cash keeps building fails.