Costco Q1 2026: 48x Earnings For Single-Digit Growth? The Math Doesn't Add Up
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Julia Ostian4.06K FollowersFollow5ShareSavePlay(13min)Comments(2)SummaryCostco Wholesale Corporation (COST) remains a world-class retailer with a uniquely resilient, low-margin, high-volume business model and strong member loyalty.Q1 2026 results were robust: revenue up 8.2% to $66B, EPS $4.50, and comps up 6.4%, though growth rates are decelerating versus tough prior-year comps.Despite a pullback to a 48x PE, COST’s valuation remains stretched, limiting near-term upside and offering little margin of safety for new buyers.I rate COST a 'Hold'—the business is excellent, but current stock levels suggest likely stagnation as earnings catch up to price. slobo/iStock Unreleased via Getty Images Introduction Costco Wholesale Corporation (COST) released its fiscal Q1 earnings results yesterday, and this marks the first time I am officially covering this company. I have to start by saying that Costco is trulyThis article was written byJulia Ostian4.06K FollowersFollowI write about stocks I’m personally interested in adding to my portfolio. I’m not a professional advisor, but I study business and economics and analyze markets full-time. My writing is meant for both complete beginners — I avoid unnecessary complexity — and advanced readers, as I always aim to offer a distinct and well-reasoned perspective.I also run a YouTube Channel called "The Market Monkeys" and break some of the stocks there as well.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You