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CostcoLesson 1 of 4

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WAREHOUSEMEMBERS

2026 report · 9 min

How Costco makes money

Costco sells groceries and TVs at thin markups. So where does its profit come from?

Ticket 01 · The guess

How much of the profit is fees?

Costco made $11.7B in operating profit in fiscal 2026: what was left after paying for the goods and running its 939sec.gov ·2026 warehouses. Members also pay a yearly fee just to shop there.

Those fees add up to how much of that profit?

20%
0%100%
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Sources and every number (1)

Sources

  • Costco Wholesale Corporation Form 10-K for the fiscal year ended August 30, 2026 · Costco Wholesale Corporation (filed with the U.S. SEC), 2026

Every number

  • $297.2Bsec.gov ·2026 · Net sales, fiscal 2026 (income statement).
  • $5.9Bsec.gov ·2026 · Membership fees, fiscal 2026 (income statement).
  • $11.7Bsec.gov ·2026 · Operating income, fiscal 2026 (income statement).
  • $5.8Bsec.gov ·2026 · Worked out: gross margin minus SG&A, fiscal 2026. Costco doesn't split its running costs between the store and the memberships; this puts all of them on the store side.
  • 939sec.gov ·2026 · Warehouses worldwide at the end of fiscal 2026.
  • 2%sec.gov ·2026 · The Executive reward on qualified purchases, generally, up to a yearly maximum.
  • $3.4Bsec.gov ·2026 · Executive rewards, counted as a reduction in sales, fiscal 2026 (notes to the financial statements).
  1. Lessons›
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  3. Costco
  • ·Next: How Costco is organized
  • ·Free guide: How Costco makes money
Skip to the lesson

CostcoLesson 1 of 4

Part 1 of 3, 0 done
WAREHOUSEMEMBERS

2026 report · 9 min

How Costco makes money

Costco sells groceries and TVs at thin markups. So where does its profit come from?

Ticket 01 · The guess

How much of the profit is fees?

Costco made $11.7B in operating profit in fiscal 2026: what was left after paying for the goods and running its 939sec.gov ·2026 warehouses. Members also pay a yearly fee just to shop there.

Those fees add up to how much of that profit?

20%
0%100%
Words to know

Spot something wrong?

Tell us what looks off. No name or email needed.

What kind of problem?

0 / 1000

We'll also send this page, the lesson, ticket 1, so we can find it. Nothing else. Privacy

·
Sources and every number (1)

Sources

  • Costco Wholesale Corporation Form 10-K for the fiscal year ended August 30, 2026 · Costco Wholesale Corporation (filed with the U.S. SEC), 2026

Every number

  • $297.2Bsec.gov ·2026 · Net sales, fiscal 2026 (income statement).
  • $5.9Bsec.gov ·2026 · Membership fees, fiscal 2026 (income statement).
  • $11.7Bsec.gov ·2026 · Operating income, fiscal 2026 (income statement).
  • $5.8Bsec.gov ·2026 · Worked out: gross margin minus SG&A, fiscal 2026. Costco doesn't split its running costs between the store and the memberships; this puts all of them on the store side.
  • 939sec.gov ·2026 · Warehouses worldwide at the end of fiscal 2026.
  • 2%sec.gov ·2026 · The Executive reward on qualified purchases, generally, up to a yearly maximum.
  • $3.4Bsec.gov ·2026 · Executive rewards, counted as a reduction in sales, fiscal 2026 (notes to the financial statements).
  1. Lessons›
  2. Big companies›
  3. Costco
  • ·Next: How Costco is organized
  • ·Free guide: How Costco makes money