Costco (COST) will report its fiscal second-quarter results tomorrow on March 5. After falling around 6% in 2025, COST stock has risen 17.4% so far this year. The company enters earnings with strong momentum, driven by growing membership traffic and improving sales trends that have lifted investor sentiment. Ahead of its Q2 print, analysts are strongly bullish on COST stock, suggesting a modest upside of 7%. The highest price target of $1,205 implies nearly 20% potential gains, highlighting the stock’s growth potential if the company delivers on expectations.
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For context, Costco is a U.S.-based membership-only warehouse retailer known for offering bulk goods, groceries, and household products at low prices.
Costco’s Q2 Earnings Expectations
Analysts expect Costco to report earnings of $4.55 per share for Q2, up from $4.02 in the same quarter last year. Meanwhile, revenue is projected to grow by 10% year-over-year to $69.25 billion.
January sales were solid, with net sales around $21 billion, up 9.3% from last year. In the first 22 weeks of the fiscal year—nearly halfway through—sales increased 8.5% year-over-year. Overall trends—including steady comparable sales growth across regions and strong e-commerce gains—point to another robust quarter for Costco. Digital sales are also a key focus. They’ve been growing quickly in the double digits, and any slowdown could disappoint the market.
At the same time, memberships are rising faster—partly due to inflation—and Costco’s in-house brand, Kirkland Signature, is keeping customers loyal and helping the company gain market share during the current economic slowdown. Any surprises in membership could move the stock.
On the flip side, Costco’s high valuation leaves little room for error. Any slowdown in comparable sales or increased pressure from competitors could weigh on the stock. Notably, Costco’s forward P/E is 49.6, well above the sector average of 18.9.
Analysts’ View on COST Ahead of Earnings
Recently, Bank of America’s four-star-rated analyst Christopher Nardone maintained his Buy rating on COST ahead of its results. He also set a $1,185 price target. Nardone says Costco’s strong appeal to higher-income consumers, combined with its industry-leading pricing that attracts value-conscious shoppers, keeps the company well positioned to lead in the current “K-shaped” economy.
Meanwhile, Citi analyst Steven Zaccone kept his Hold rating on COST stock but raised his price target from $990 to $1,000.
What Is the Prediction for Costco Stock?
Overall, Wall Street has a Strong Buy consensus rating on Costco stock based on 19 Buys, four Holds, and one Sell recommendation. The average COST stock price target of $1,081.57 indicates 7% upside potential.
