Costco's 9.8% Same-Store Sales Growth in Q3 2026 Shows Why Investors Love the Retail Stock So Much

Costco (NASDAQ: COST) reported financial results for its fiscal 2026 third quarter (ended May 10) on May 28. Total revenue increased 11.6% year over year to $70.5 billion. Diluted earnings per share rose by 15.2%. These were healthy headline figures.

However, the company's same-store sales , an important metric to follow, climbed 9.8% (6.6% excluding changes in gas prices and foreign exchange) during Q3. This was another strong showing. And it reveals why investors love Costco so much.

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The retail sector is extremely competitive. But Costco stands out. It has a tremendous scale that allows it to negotiate favorable terms from vendors, which supports low prices for shoppers. Consumers appreciate the no-frills warehouse environment, which offers high-quality merchandise in a wide range of product categories.

This supports durable same-store sales growth, which is the envy of the retail industry. Costco's 9.8% same-store sales gain was driven by strong gas sales, higher ticket sizes, and higher traffic.

Consumers, investors, and analysts would probably agree that the U.S. economy isn't exactly in tip-top shape. There are many reasons why:

Inflation, as measured by the Consumer Price Index, increased 3.8% in April , the fastest pace of growth since May 2023.

And there are fears about the impact artificial intelligence will have on the labor force.