Costco Wholesale Corporation stock research
FY2025 Q2
Costco Wholesale (COST) Gross Margin — Quarter Ended Feb 16, 2025
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin was stable versus the prior year but slightly lower than the preceding quarter.
Gross margin takeaway
Quarter ended Feb 16, 2025 · FY2025 Q2
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin was stable versus the prior year but slightly lower than the preceding quarter.
- Gross margin held steady at the year-ago level, while the small decline from the prior quarter was driven by cost of revenue increasing at a faster pace than revenue. No single metric drove the margin shift more than the relative growth rates of revenue and cost of revenue.
- Revenue and gross profit were higher than both the preceding quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but was unchanged from the year-ago period.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.5%
Gross profit
$8.0B
Revenue
$63.7B
Cost of revenue
$55.7B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
+0.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Feb 18, 2024 | $58.4B | $7.3B | $51.1B | 12.5% |
| May 12, 2024 | $58.5B | $7.3B | $51.2B | 12.5% |
| Nov 24, 2024 | $62.2B | $8.0B | $54.1B | 12.9% |
| Feb 16, 2025 | $63.7B | $8.0B | $55.7B | 12.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 24, 2024
-0.4 pts
Year-over-year change
Feb 18, 2024
+0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin held steady at the year-ago level, while the small decline from the prior quarter was driven by cost of revenue increasing at a faster pace than revenue. No single metric drove the margin shift more than the relative growth rates of revenue and cost of revenue.
Revenue and gross profit were higher than both the preceding quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but was unchanged from the year-ago period.
Monitor whether cost of revenue growth continues to outpace revenue growth, as that pattern pressured gross margin in the current quarter.