Costco Wholesale is set to release its third-quarter earnings report for the 2025 fiscal year on Thursday, with analysts generally expressing confidence in the company’s performance. However, most do not expect any significant fluctuations in its stock price following the release.
Key Highlights
Costco’s Q3 earnings report for fiscal 2025 is scheduled for release after Thursday’s market close.
The majority of analysts have issued a “Buy” rating for Costco’s stock, with an average target price of $1,058.40, reflecting a modest 5% upside from the current trading price of $1,010.37.
UBS analysts predict Costco will successfully navigate tariff-related challenges, forecasting increases in both sales and profits.
Despite a generally optimistic outlook, analysts do not foresee a dramatic increase in Costco’s stock price after the earnings report. According to Visible Alpha data, 10 analysts have rated Costco as a “Buy,” while 6 analysts have given it a “Hold” rating. The average target price of $1,058.40 suggests a 5% upside from the current price.
Costco is expected to report an 8% year-over-year increase in revenue for Q3, reaching $63.19 billion. Earnings per share are forecasted to grow by 13%, reaching $4.27. Additionally, membership numbers are predicted to rise to 79.6 million, up from 78.4 million in the previous quarter.
Navigating Tariff Uncertainties
UBS analysts believe that Costco is well-positioned to handle the uncertainties surrounding tariffs, thanks to its ability to swiftly discontinue uncompetitive products and replace them with alternatives. Analysts also expect the upcoming increase in membership fees—scheduled for September—to positively impact Costco’s profitability in the second half of fiscal 2025 and into 2026. This surge in membership revenue provides Costco with more flexibility to absorb tariff impacts without having to raise prices.
“While this report may not significantly alter the market’s view of Costco as a reliable investment, the company’s strong positioning, leverage, and capacity to navigate future challenges could become more apparent as the effects of tariffs become clearer in the coming months,” UBS analysts wrote.
Stock Performance
While Costco’s stock has seen volatility over the past year, it has gained approximately 10% in value so far in 2025.
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