Costco Wholesale Corporation stock research
FY2026 Q2
Costco Wholesale (COST) Gross Margin — Quarter Ended Feb 15, 2026
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter a year ago.
Gross margin takeaway
Quarter ended Feb 15, 2026 · FY2026 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter a year ago.
- The relationship shows that revenue growth outpaced the increase in cost of revenue relative to the year-ago quarter, supporting an improved gross margin year over year. Sequentially, cost of revenue grew at a faster pace than revenue, leading to a modest margin decline.
- Against the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.8%
Gross profit
$8.9B
Revenue
$69.6B
Cost of revenue
$60.7B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+0.2 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 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% |
| Feb 15, 2026 | $69.6B | $8.9B | $60.7B | 12.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 23, 2025
-0.3 pts
Year-over-year change
Feb 16, 2025
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship shows that revenue growth outpaced the increase in cost of revenue relative to the year-ago quarter, supporting an improved gross margin year over year. Sequentially, cost of revenue grew at a faster pace than revenue, leading to a modest margin decline.
Against the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was higher.
Monitor the trajectory of cost of revenue relative to revenue, as its faster sequential growth contributed to the margin compression.