ISSAQUAH, Washington, March 9, 2026, 09:54 PDT
Costco Wholesale isn’t committing to another special dividend just yet, despite its cash pile returning to pre-payout territory. Chief Financial Officer Gary Millerchip said the retailer is still funneling funds into warehouses, logistics, and digital investments. When asked by analysts, Millerchip noted the board keeps evaluating another one-time dividend, but for now, there are “no plans” to announce. 1
Costco’s latest numbers show the strategy is having an impact. For the quarter ended Feb. 15, net sales jumped 9.1% to $68.24 billion. Net income came in at $2.04 billion. Comparable sales—tracking locations open at least a year—rose 7.4%. The company’s digital channels delivered even heftier growth, with online and app-driven sales up 22.6%. 2
Costco’s digital upgrades are translating to real gains: personalized product-recommendation carousels drove over $470 million in e-commerce sales for the quarter. Traffic numbers jumped too, with site visits up 32% and app visits climbing 45%. Refreshed product pages boosted sales on Costco.com and also brought more users to same-day delivery options. 3
Chief Executive Ron Vachris told analysts on the earnings call that digital upgrades have proved “very beneficial” for Costco, letting the retailer absorb increased traffic with little need for extra staffing. Costco’s new scan-and-go stations, now in pilot, slash average checkout time to roughly eight seconds. 4
Membership income continued to bolster results. Fee revenue climbed 13.6% to $1.355 billion. Paid memberships ticked up 4.8%, reaching 82.1 million, while executive memberships jumped 9.5% to 40.4 million. Back in January, Costco announced its regular quarterly dividend of $1.30 per share. 3
No surprise the chatter over special dividends picks up after earnings—Costco’s investors are looking for those windfalls. The retailer’s last special payout hit $15 a share in December 2023, totaling roughly $6.7 billion. By quarter’s end, Costco was sitting on $17.38 billion in cash and equivalents. 1
Millerchip noted Costco’s cash levels have returned to roughly their pre-payout position. But he pointed out that matching the previous dividend yield would demand more cash today, with shares trading at a higher price. For the time being, he said, the company continues to spot worthwhile investment opportunities and expects solid returns. 1
But not everything is tied up. Costco noted that new online members tend to renew less often than those signing up in stores, which dragged the U.S. and Canada renewal rate down 10 basis points from the previous quarter to 92.1%. The global rate, though, stayed put at 89.7%. As for tariff refunds, the outlook is still cloudy. Costco maintains it would cut prices if any funds are returned. 3
That might not leave much margin for error, especially with bargain hunters sticking with Costco and Walmart. David Wagner at Aptus Capital Advisors called Costco a “safe haven” in investors’ eyes. D.A. Davidson’s Michael Baker flagged that some recent developments could upend the progress on inflation. 5
