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Costco Wholesale COST Operating margin

Operating margin at other companies

Target logo
TargetTGT
4.5%-0.9pp
Kroger logo
KrogerKR
1.3%-1.3pp
Sysco logo
SyscoSYY
3.6%-0.3pp
Walmart
 logo
Walmart WMT
4.2%-0.2pp
Best Buy logo
Best BuyBBY
3.7%+0.9pp
Dollar Tree logo
Dollar TreeDLTR
8.8%+0.7pp

Other financials

Income statement

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Revenue$70.5B+11.6%
Gross profit$9.0B+9.7%
Operating income$2.8B+11.3%
Net income$2.2B+15.2%
EPS (diluted)$4.93+15.2%

Balance sheet

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Cash & equivalents$18.9B+36.9%
Total debt$8.1B-2.7%
Total equity$33.5B+23.5%
Total assets$86.4B+14.5%

Cash flow

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Operating cash flow$11.1B+17.6%
CapEx$4.2B+19.7%
Free cash flow$6.9B+16.3%

Valuation

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Market cap$428.22B-6.1%
Enterprise value$417.41B-7.3%
P/E48.5×-9.7×
P/S1.5×-0.2×

Profitability

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Gross margin12.9%+0.1pp
Net margin3%+0.1pp

Returns & leverage

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Return on equity29.2%-2.9pp
Debt / equity0.2×-0.1×
Current ratio1.1×+0.1×

Where this comes from

Calculated from Costco Wholesale’s reported figures.

Based on trailing twelve months.

The official record: Costco Wholesale’s 10-Q, filed June 3, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Costco Wholesale's operating margin?
Costco Wholesale (COST) reported operating margin of 3.8% in Q1 2026.
How has Costco Wholesale's operating margin changed year-over-year?
Costco Wholesale's operating margin increased by 1.9% year-over-year, from 3.8% to 3.8%.
What is the long-term trend for Costco Wholesale's operating margin?
Over 4 years (2021 to 2025), Costco Wholesale's operating margin has grown at a 2.5% compound annual growth rate (CAGR), from 13.5% to 14.9%.
What does operating margin mean?
The profit left from core operations for every dollar of sales, before interest and taxes.
How do you interpret operating margin?
Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.
How does operating margin compare across companies?
Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.