Costco Wholesale has established a robust retail franchise with a market cap of approximately $432 billion. The Dow Jones Industrial Average's selection process is managed by a committee and is price-weighted. Costco's high share price would make it a significant component if included. In FY2025, Costco reported revenue of $275.235 billion and net income of $8.099 billion. The membership model and digital growth contribute to its strong performance, but Walmart's presence in the Dow may limit Costco's chances of inclusion.
"Costco's fundamentals are impressive, with FY2025 revenue reaching $275.235 billion, an 8.17% increase year over year, and net income of $8.099 billion, up 9.94%. The most recent quarter showed continued growth, with Q2 FY2026 revenue at $69.597 billion, up 9.22%, and EPS of $4.58, beating estimates by 0.78%."
"The membership model provides a recurring revenue layer that most retailers cannot match, with paid memberships at 82.1 million in Q2 FY2026 and a renewal rate of 89.7%. Membership fee income reached $1.355 billion, up 13.6% year over year, showcasing strong customer loyalty."
"Digital momentum is significant, with app visits growing 63% in Q2 FY2026, e-commerce site traffic rising 32%, and average order value climbing 15%. Costco's 10-year return of 659.37% outpaces virtually every major retailer, indicating strong long-term performance."
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]