# Beta Finch Podcast Script: Costco Q2 2026 Earnings
**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex, and as always, I'm joined by my co-host Jordan. Today we're diving into Costco's second quarter 2026 results, and wow - there's a lot to unpack here.
But first, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.
Now Jordan, Costco just delivered some pretty impressive numbers. What jumped out at you first?
**JORDAN**: Alex, these results really showcase why Costco remains such a powerhouse. Net income hit $2.04 billion, up 14% year-over-year, with earnings per share at $4.58 versus $4.02 last year. But what's even more impressive is the revenue growth - $68.2 billion in net sales, up 9.1% from the prior year.
**ALEX**: And let's talk about those comparable sales numbers because they tell a great story about member engagement.
**JORDAN**: Absolutely. Comp sales were up 7.4%, or 6.7% when you adjust for gas deflation and foreign exchange impacts. But here's what really caught my attention - digitally enabled comp sales surged 22.6%. That's a clear sign that Costco's digital transformation is gaining serious traction.
**ALEX**: Speaking of members, the membership side of the business continues to be that reliable cash cow, right?
**JORDAN**: It really is. Membership fee income grew 13.6% to $1.36 billion. Now, about a third of that growth came from the September 2024 membership fee increase in the US and Canada. But even excluding that increase and foreign exchange impacts, membership income still grew 7.5% - that's solid organic growth driven by new members and executive membership upgrades.
**ALEX**: The membership numbers are fascinating too. They now have over 40 million paid memberships, up 9.5% year-over-year. Though I noticed renewal rates dipped slightly in the US and Canada to 92.1%. What's behind that?
**JORDAN**: That's actually an interesting strategic challenge they're navigating. The slight decline is primarily because online member sign-ups are growing as a percentage of their total base, and these digital members historically renew at slightly lower rates than those who sign up in-warehouse. But management is actively addressing this with targeted digital retention strategies, which are showing some positive impact.
**ALEX**: Now, let's talk about the elephant in the room - tariffs. CEO Ron Vachris spent considerable time addressing this during the call.
**JORDAN**: Yes, and this is where Costco's operational expertise really shines. Vachris explained that they're dealing with a complex, fluid tariff environment where the old AIPA tariffs were eliminated but replaced with new global tariffs. Costco's response has been multi-pronged: shifting production countries when it makes sense, consolidating global buying efforts, leaning heavily into their Kirkland Signature private label where they control the supply chain, and sourcing more domestically.
**ALEX**: What I found reassuring was their pricing philosophy. Even with tariff pressures, they maintained their commitment to being "the first to lower prices and the last to raise them."
**JORDAN**: Exactly. They actually lowered prices on key items like eggs, cheese, coffee, and paper products as commodity inflation cooled. And they're already reducing prices on items where tariffs have been eliminated - textiles, bedding, cookware. It's that member-first mentality that keeps customers loyal even in challenging times.
**ALEX**: The expansion story is pretty compelling too. They're targeting 30-plus new warehouse openings per year going forward.
**JORDAN**: That's a significant acceleration from historical norms. What's particularly interesting is how they're getting creative with real estate. They men
This episode includes AI-generated content.
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2026/05/298 分