Name: Costco Wholesale Corp. (NASDAQ:COST) | Income Statement
Creator: Stock Analysis on Net

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.

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Costco Wholesale Corp., consolidated income statement

US$ in millions

12 months ended:	Aug 30, 2026	Aug 31, 2025	Sep 1, 2024	Sep 3, 2023	Aug 28, 2022	Aug 29, 2021
Net sales	297,247)	269,912)	249,625)	237,710)	222,730)	192,052)
Merchandise costs	(264,279)	(239,886)	(222,358)	(212,586)	(199,382)	(170,684)
Gross margin	32,968)	30,026)	27,267)	25,124)	23,348)	21,368)
Membership fees	5,907)	5,323)	4,828)	4,580)	4,224)	3,877)
Selling, general and administrative	(27,190)	(24,966)	(22,810)	(21,590)	(19,779)	(18,537)
Operating income	11,685)	10,383)	9,285)	8,114)	7,793)	6,708)
Interest expense	(145)	(154)	(169)	(160)	(158)	(171)
Interest income	601)	469)	533)	470)	61)	41)
Foreign-currency transaction gains, net	69)	84)	26)	29)	106)	56)
Other, net	41)	36)	65)	34)	38)	46)
Interest income and other, net	711)	589)	624)	533)	205)	143)
Other income (expense)	566)	435)	455)	373)	47)	(28)
Income before income taxes	12,251)	10,818)	9,740)	8,487)	7,840)	6,680)
Provision for income taxes	(3,025)	(2,719)	(2,373)	(2,195)	(1,925)	(1,601)
Net income including noncontrolling interests	9,226)	8,099)	7,367)	6,292)	5,915)	5,079)
Net income attributable to noncontrolling interests	—)	—)	—)	—)	(71)	(72)
Net income attributable to Costco	9,226)	8,099)	7,367)	6,292)	5,844)	5,007)

Based on: 10-K (reporting date: 2026-08-30), 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).

The financial trajectory from 2021 through 2026 demonstrates consistent growth in both top-line revenue and bottom-line profitability. Net sales exhibit a steady upward trend, increasing from 192,052 million US dollars in 2021 to a projected 297,247 million US dollars by 2026. This growth is accompanied by a proportional rise in gross margin, which expands from 21,368 million US dollars to 32,968 million US dollars over the same period.

Revenue Streams and Margin Analysis: Net sales growth is supported by a steady increase in membership fees, which rise from 3,877 million US dollars in 2021 to 5,907 million US dollars in 2026. While merchandise costs increase in absolute terms to 264,279 million US dollars by 2026, the gross margin remains resilient, indicating a stable ability to manage cost of goods sold relative to sales volume.
Operating Efficiency and Income: Operating income shows a strong positive trend, growing from 6,708 million US dollars in 2021 to 11,685 million US dollars in 2026. Although selling, general, and administrative expenses increase from 18,537 million US dollars to 27,190 million US dollars, the growth rate of these expenses is offset by the expansion in gross margin and membership fee revenue, resulting in improved operational profitability.
Non-Operating Items and Financial Income: A significant shift is observed in interest income, which rises sharply from 61 million US dollars in 2022 to 470 million US dollars in 2023, eventually reaching 601 million US dollars by 2026. This increase in interest income, combined with stable interest expenses, has contributed positively to "Other income (expense)," which grew from -28 million US dollars in 2021 to 566 million US dollars by 2026.
Net Profitability: Net income attributable to the company demonstrates a linear growth pattern, starting at 5,007 million US dollars in 2021 and reaching 9,226 million US dollars by 2026. The provision for income taxes increases accordingly, moving from 1,601 million US dollars to 3,025 million US dollars, maintaining a consistent effective tax relationship relative to income before taxes.

The overall financial performance is characterized by scalable growth and enhanced non-operating income. The expansion of the membership fee base provides a stable high-margin revenue stream that complements the growth in net sales, contributing to a sustainable increase in net income over the six-year period.

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