Costco earnings support Goldman Sachs upside call on retail stock

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Costco earnings support upside

Highlights

Costco's fiscal Q4 earnings per share reached $6.60 and revenue hit $95.72 billion, both topping LSEG consensus estimates.
Goldman Sachs maintained its buy rating, lowering the price target to $1,134 but still implying 26% upside from Thursday's close.
Costco plans 28 net new warehouses in fiscal 2027, expanding into underserved areas amid broad Wall Street buy ratings—25 out of 39 analysts remain bullish.

Quarterly results and brokerage outlook

As reported by CNBC, Goldman Sachs keeps a buy rating on Costco after the retailer posted better-than-expected fiscal fourth-quarter results and outlined steps that the bank believes can help it manage macroeconomic pressures.

The bank lowered its price target to $1,134 from $1,159, but the revised target still implies 26% upside from Thursday's close. Analyst Kate McShane says Costco is prioritizing tariff refunds for price investments and remains well positioned to benefit from younger members and additional delivery options.

Costco reports fiscal fourth-quarter earnings of $6.60 per share, above the LSEG consensus estimate of $6.53. Revenue reaches $95.72 billion, also ahead of expectations, adding support to the more constructive view from brokerages following the release.

Expansion plans and broader Wall Street support

Investors have weighed Costco shares down 5% over the past year as concerns build around higher fuel costs and stronger e-commerce competition. Goldman Sachs nevertheless points to company initiatives that could support future share gains, including plans to open 28 net new warehouses in fiscal 2027.

According to the bank, most of those new locations are likely to be in underserved areas, giving Costco room to broaden its footprint. The positive stance also broadly matches Wall Street consensus, with LSEG data showing that 25 of the 39 analysts covering the stock hold a buy or strong buy rating.

Other major banks also stay constructive after the earnings release. JPMorgan, Bank of America, and Morgan Stanley all reiterate buy-equivalent ratings on Costco shares.

Our earlier report on Jersey Mike’s UK expansion outlined how the U.S. sandwich chain plans to open its first London store in November and ultimately target about 400 locations across the UK and Ireland. We noted that the rollout comes despite soft UK hospitality demand and rising operating costs, with the company positioning the move as a springboard for broader international growth while facing entrenched local competitors.

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