Costco Wholesale Corporation stock research
FY2026 Q1
Costco Wholesale (COST) Gross Margin — Quarter Ended Nov 23, 2025
Revenue, gross profit, and cost of revenue all moved higher compared with both the prior quarter and the same quarter a year ago. Gross margin improved slightly from the prior quarter and improved relative to the year-ago quarter, reflecting that gross profit grew at a faster pace than cost of revenue.
Gross margin takeaway
Quarter ended Nov 23, 2025 · FY2026 Q1
Revenue, gross profit, and cost of revenue all moved higher compared with both the prior quarter and the same quarter a year ago. Gross margin improved slightly from the prior quarter and improved relative to the year-ago quarter, reflecting that gross profit grew at a faster pace than cost of revenue.
- Gross margin strengthened sequentially and year-over-year, primarily because gross profit increased at a greater rate than cost of revenue. Among the supplied metrics, this relative growth rate was the strongest observable driver of margin expansion.
- Compared with the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, while gross margin improved. Compared with the same quarter one year earlier, all metrics were higher, and gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
13.1%
Gross profit
$8.8B
Revenue
$67.3B
Cost of revenue
$58.5B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+0.1 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 |
|---|---|---|---|---|
| Nov 24, 2024 | $62.2B | $8.0B | $54.1B | 12.9% |
| Feb 16, 2025 | $63.7B | $8.0B | $55.7B | 12.5% |
| May 11, 2025 | $63.2B | $8.2B | $55.0B | 13.0% |
| Nov 23, 2025 | $67.3B | $8.8B | $58.5B | 13.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 11, 2025
+0.1 pts
Year-over-year change
Nov 24, 2024
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin strengthened sequentially and year-over-year, primarily because gross profit increased at a greater rate than cost of revenue. Among the supplied metrics, this relative growth rate was the strongest observable driver of margin expansion.
Compared with the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, while gross margin improved. Compared with the same quarter one year earlier, all metrics were higher, and gross margin also improved.
The pace at which cost of revenue grows relative to revenue warrants monitoring to assess whether gross margin can sustain its current improvement.