Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Costco Wholesale Corp., consolidated income statement

US$ in millions

12 months ended:	Aug 31, 2025	Sep 1, 2024	Sep 3, 2023	Aug 28, 2022	Aug 29, 2021	Aug 30, 2020
Net sales	269,912)	249,625)	237,710)	222,730)	192,052)	163,220)
Merchandise costs	(239,886)	(222,358)	(212,586)	(199,382)	(170,684)	(144,939)
Gross margin	30,026)	27,267)	25,124)	23,348)	21,368)	18,281)
Membership fees	5,323)	4,828)	4,580)	4,224)	3,877)	3,541)
Selling, general and administrative	(24,966)	(22,810)	(21,590)	(19,779)	(18,537)	(16,387)
Operating income	10,383)	9,285)	8,114)	7,793)	6,708)	5,435)
Interest expense	(154)	(169)	(160)	(158)	(171)	(160)
Interest income	469)	533)	470)	61)	41)	89)
Foreign-currency transaction gains, net	84)	26)	29)	106)	56)	7)
Other, net	36)	65)	34)	38)	46)	(4)
Interest income and other, net	589)	624)	533)	205)	143)	92)
Other income (expense)	435)	455)	373)	47)	(28)	(68)
Income before income taxes	10,818)	9,740)	8,487)	7,840)	6,680)	5,367)
Provision for income taxes	(2,719)	(2,373)	(2,195)	(1,925)	(1,601)	(1,308)
Net income including noncontrolling interests	8,099)	7,367)	6,292)	5,915)	5,079)	4,059)
Net income attributable to noncontrolling interests	—)	—)	—)	(71)	(72)	(57)
Net income attributable to Costco	8,099)	7,367)	6,292)	5,844)	5,007)	4,002)

Based on: 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30).

Net Sales: Net sales have shown a consistent upward trend over the periods analyzed, increasing steadily from $163,220 million in 2020 to $269,912 million in 2025. This growth reflects a solid expansion of the company's revenue base year over year.
Merchandise Costs: Merchandise costs have also increased correspondingly with net sales, rising from $144,939 million in 2020 to $239,886 million in 2025. The increase in costs is proportionate to net sales growth, but the effect on gross margin indicates improving operational efficiency.
Gross Margin: Gross margin has increased from $18,281 million in 2020 to $30,026 million in 2025, showing a positive trend. This increase suggests enhanced profitability at the gross profit level, which may result from favorable pricing, cost control, or product mix improvements.
Membership Fees: Membership fees have steadily increased from $3,541 million in 2020 to $5,323 million in 2025. This consistent rise underscores the continuing value derived from a loyal member base and potentially growing membership numbers.
Selling, General, and Administrative Expenses (SG&A): SG&A expenses have risen from $16,387 million in 2020 to $24,966 million in 2025, reflecting higher operational expenditures consistent with business growth. Although SG&A costs increased, the growth in operating income suggests effective management of these expenses relative to revenue expansion.
Operating Income: Operating income has shown a robust upward trajectory, climbing from $5,435 million in 2020 to $10,383 million in 2025. This indicates enhanced operational profitability and efficient cost management relative to sales growth.
Interest Expense and Interest Income: Interest expense remained relatively stable around $160 million annually, showing minimal fluctuation. Interest income, however, showed a notable increase from $89 million in 2020 to a peak of $533 million in 2024, before slightly declining to $469 million in 2025, likely contributing positively to overall other income.
Foreign-Currency Transaction Gains and Other Income: Foreign-currency transaction gains generally increased, peaking at $106 million in 2022, then fluctuating but maintaining positive contributions. Other income, net, shows slight variability but overall improved, contributing positively alongside interest to other income and expense lines.
Income Before Income Taxes: Income before income taxes expanded from $5,367 million in 2020 to $10,818 million in 2025, reflecting consistent growth in the company's profitability before tax considerations.
Provision for Income Taxes: Provision for income taxes increased from $1,308 million in 2020 to $2,719 million in 2025, in line with higher pre-tax income. This indicates stable effective tax rates given the proportional rise in tax provision relative to income before taxes.
Net Income: Net income attributable to the company has increased substantially, rising from $4,002 million in 2020 to $8,099 million in 2025. This more than doubling of net income highlights strong overall profitability and successful internal financial management over the period.

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Costco Wholesale Corp. (NASDAQ:COST)

Income Statement