How Costco Makes Money (2026)
Costco makes money mainly from Net merchandise sales. Its FY2026 total revenue was $303,154 million ($303.2 billion), with Net merchandise sales the biggest disclosed revenue line at $297,247 million ($297.2 billion) and 98.1% of total revenue (computed from the 10-K FY2026). Costco collects membership fees and recognizes them across the membership period.
Last checked 2026-10-18 on the official pages.
Revenue breakdown
Amounts in millions of USD. Shares are computed from the filing.
| Revenue line | Value | % of total | Filing |
|---|---|---|---|
| Net merchandise sales | $297,247 million ($297.2 billion) | 98.1% | 10-K FY2026 ↗ |
| Membership fees | $5,907 million ($5.9 billion) | 1.9% | 10-K FY2026 ↗ |
| Total revenue | $303,154 million ($303.2 billion) | — | 10-K FY2026 ↗ |
The hidden model
Costco collects membership fees and recognizes them across the membership period.
Costco collects membership fees and recognizes them across the membership period. verified
We account for membership fee revenue on a deferred basis, recognized ratably over the one-year membership period.
Membership fees are deferred and recognized over the membership period. verified
The Company accounts for membership fee revenue, net of refunds, on a deferred basis, ratably over the one-year membership period.
Business models
Membership warehouse · Retail margin
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Frequently asked questions
How does Costco make money?
Costco makes money mainly from Net merchandise sales. Its FY2026 total revenue was $303,154 million ($303.2 billion), with Net merchandise sales the biggest disclosed revenue line at $297,247 million ($297.2 billion) and 98.1% of total revenue (computed from the 10-K FY2026). Costco collects membership fees and recognizes them across the membership period.
What is Costco’s business model?
Costco’s business model is Membership Warehouse and Retail Margin. Charge members for access to a merchandise assortment. Membership renewals complement the margin earned on goods and help fund the customer value proposition. Costco collects membership fees and recognizes them across the membership period.
What is Costco’s hidden model?
Costco collects membership fees and recognizes them across the membership period.