Gary

Dynamic

Wednesday

<h3 id="key-takeaways">Key Takeaways</h3>
<ul>
 <li>Costco’s fourth quarter earnings announcement is scheduled for September 24, with quarterly revenue already disclosed at $93.9 billion, representing an 11.3% annual increase</li>
 <li>The warehouse retailer’s membership renewal percentages have shown consecutive quarterly declines, reaching 92.1% in the second quarter of fiscal 2026, though executives indicate stabilization</li>
 <li>The company significantly broadened its delivery collaboration with Uber Eats, jumping from coverage in 17 states to 48, encompassing approximately 600 warehouse facilities</li>
 <li>RBC Capital retained its Sector Perform assessment with a $1,000 share price objective, forecasting fourth quarter earnings per share of $6.54</li>
 <li>Analyst community consensus leans toward Moderate Buy, with mean price projections around $1,090, suggesting approximately 21% appreciation potential</li>
</ul>
<p>The wholesale giant is approaching its fourth quarter financial disclosure scheduled for September 24 with several developments already in motion. Shares traded near $903 on Wednesday, posting modest gains following announcements regarding the broadened Uber Eats collaboration.</p>
<p><a href="https://knockoutstocks.com/stock/COST" rel="noopener noreferrer nofollow"><br><img src="https://knockoutstocks.com/api/stocks/COST/embed" alt="COST Stock Card"><br> Costco Wholesale Corporation, COST<br></a></p>
<p>Fourth quarter revenue reached $93.9 billion, marking an 11.3% year-over-year advancement. Comparable warehouse sales increased 9.4%, or 6.7% excluding gasoline and currency fluctuations. E-commerce and digitally facilitated transactions surged 19.5%.</p>
<p>Given that Costco discloses monthly sales data, market participants already possess substantial visibility into top-line performance before the official earnings announcement. The outstanding question centers on margin efficiency and bottom-line conversion.</p>
<p>Street expectations indicate earnings per share growth of 11.4% alongside revenue expansion of 10.1% compared to the prior year period. RBC Capital maintains a marginally higher forecast, anticipating adjusted EPS of $6.54 versus the $6.50 consensus estimate.</p>
<h3 id="membership-retention-takes-center-stage">Membership Retention Takes Center Stage</h3>
<p>The more critical element for the upcoming earnings release involves membership metrics. Renewal percentages have experienced gradual erosion across multiple consecutive quarters, declining from 93.0% in the second quarter of fiscal 2025 to 92.1% in the corresponding period of fiscal 2026.</p>
<p><a href="https://knockoutstocks.com/stock/COST" rel="noopener noreferrer nofollow">Costco</a> previously acknowledged this trend in late 2024, attributing it to historically lower renewal patterns among digitally acquired cardholders. Company leadership now indicates the downward pressure is moderating.</p>
<p>Chief Financial Officer Gary Millerchip characterized renewal percentages as having reached a plateau during the most recent quarterly conference call, though he refrained from providing explicit forward guidance.</p>
<p>While membership fee revenue represents a relatively modest share of total sales, it delivers outsized profitability. In fiscal 2025, Costco collected $5.32 billion in membership dues, accounting for approximately 51% of the company’s $10.38 billion operating profit.</p>
<p>The ongoing renewal rate deterioration has created headwinds for the stock. COST currently trades roughly 4% below its initial post-third quarter closing price and approximately 8% beneath pre-earnings levels from that period.</p>
<h3 id="nationwide-uber-eats-integration-creates-new-dynamic-p-wednesday-brought-news-that-uber-eats-dramatically-scaled-its-costco-delivery-arrangement-from-17-states-to-48-bringing-nearly-600-warehouse-locations-onto-the-delivery-platform-p-p-the-partnership-includes-promotional-incentives-where-qualifying-costco-cardholders-receive-50-off-their-initial-year-of-uber-one-membership-followed-by-20-discounts-in-years-thereafter-p-p-total-costco-membership-count-stood-at-82-90-million-as-of-june-2026-representing-a-4-year-over-year-deceleration-in-growth-rate-the-uber-eats-expansion-strategy-appears-designed-to-enhance-existing-membership-value-propositions-while-potentially-attracting-new-subscribers-p-p-analysis-from-edgewater-research-released-tuesday-suggested-that-doordash-may-pursue-its-own-delivery-arrangement-with-costco-and-indicated-the-retailer-might-restrict-delivery-platform-access-exclusively-to-paid-members-p-p-a-href-https-www-investing-com-news-analyst-ratings-rbc-capital-reiterates-costco-stock-rating-on-tariff-refund-outlook-93ch-4902222-rel-noopener-noreferrer-nofollow-rbc-capital-a-indicated-it-does-not-anticipate-significant-sentiment-shifts-following-the-september-24-financial-release-the-firm-s-1-000-target-valuation-reflects-approximately-40-times-its-fiscal-2028-adjusted-earnings-per-share-projection-of-25-00-p-p-strong-among-21-sell-side-analysts-tracking-the-security-15-maintain-buy-ratings-five-recommend-hold-positions-and-one-rates-it-a-sell-the-average-target-price-stands-at-1-090-79-strong-p">Nationwide Uber Eats Integration Creates New Dynamic <p>Wednesday brought news that Uber Eats dramatically scaled its Costco delivery arrangement from 17 states to 48, bringing nearly 600 warehouse locations onto the delivery platform.</p><p>The partnership includes promotional incentives where qualifying Costco cardholders receive 50% off their initial year of Uber One membership, followed by 20% discounts in years thereafter.</p><p>Total Costco membership count stood at 82.90 million as of June 2026, representing a 4% year-over-year deceleration in growth rate. The Uber Eats expansion strategy appears designed to enhance existing membership value propositions while potentially attracting new subscribers.</p><p>Analysis from Edgewater Research released Tuesday suggested that DoorDash may pursue its own delivery arrangement with Costco, and indicated the retailer might restrict delivery platform access exclusively to paid members.</p><p><a href="https://www.investing.com/news/analyst-ratings/rbc-capital-reiterates-costco-stock-rating-on-tariff-refund-outlook-93CH-4902222" rel="noopener noreferrer nofollow">RBC Capital</a> indicated it does not anticipate significant sentiment shifts following the September 24 financial release. The firm’s $1,000 target valuation reflects approximately 40 times its fiscal 2028 adjusted earnings per share projection of $25.00.</p><p><strong>Among 21 sell-side analysts tracking the security, 15 maintain Buy ratings, five recommend Hold positions, and one rates it a Sell. The average target price stands at $1,090.79.</strong></p></h3>
<h3 id="p-the-post-a-href-https-blockonomi-com-costco-cost-stock-climbs-on-uber-eats-partnership-expansion-ahead-of-fiscal-q4-results-rel-noopener-noreferrer-nofollow-costco-cost-stock-climbs-on-uber-eats-partnership-expansion-ahead-of-fiscal-q4-results-a-appeared-first-on-a-href-https-blockonomi-com-rel-noopener-noreferrer-nofollow-blockonomi-a-p"><p>The post <a href="https://blockonomi.com/costco-cost-stock-climbs-on-uber-eats-partnership-expansion-ahead-of-fiscal-q4-results/" rel="noopener noreferrer nofollow">Costco (COST) Stock Climbs on Uber Eats Partnership Expansion Ahead of Fiscal Q4 Results</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.</p></h3>

Costco (COST) Stock Climbs on Uber Eats Partnership Expansion Ahead of Fiscal Q4 Results

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