FLYWHEELCLOCK
Company · COST · Fiscal year ended Aug 30, 2026 (10-K filed Oct 7, 2026)

How Costco makes money, live: revenue, profit and where it goes

A warehouse club that earns about half its operating profit from membership fees.

Revenue since Jan 1 projected from annual 10-K averages
$9,639 a second
0 since you opened this page$9,639 a second— a day
Warehouses939
Paid members84.1M
Employees355,000
Countries14
Net income (profit)
$293/s
$293 a second · 0 since you opened this page
Membership fees
$188/s
$188 a second · 0 since you opened this page
Dividends paid
$78/s
$78 a second · 0 since you opened this page

Each counter = FY2026 total from the 10-K ÷ 31,449,600 seconds (364 days). These are averages, not real-time sales. 1

Money in, money out

Every dollar of FY2026 revenue, from where it came to where it went. Values in US$ billions.

Income statement, FY2026

Scroll sideways to follow the money →

Foods & Sundries → Total revenue: $116.8BNon-Foods → Total revenue: $77.4BFresh Foods → Total revenue: $41.7BGas, pharmacy, optical, travel & other → Total revenue: $61.4BMembership fees → Total revenue: $5.9BTotal revenue → Merchandise costs: $264.3BTotal revenue → Wages, benefits & other SG&A: $27.2BTotal revenue → Operating income: $11.7BOperating income → Pre-tax income: $11.7BInterest & other, net → Pre-tax income: $566.0MPre-tax income → Income tax: $3.0BPre-tax income → Net income: $9.2BFoods & Sundries$116.8BNon-Foods$77.4BFresh Foods$41.7BGas, pharmacy, optical, travel & other$61.4BMembership fees$5.9BTotal revenue$303.2BMerchandise costs$264.3BWages, benefits & other SG&A$27.2BOperating income$11.7BInterest & other, net$566.0MPre-tax income$12.3BIncome tax$3.0BNet income$9.2B

Net sales by category and all lines in US$ millions from the 10-K: 116,788 + 77,375 + 41,715 + 61,369 = 297,247 net sales; + 5,907 membership = 303,154. Interest & other, net = 711 interest income & other − 145 interest expense = 566 (derived). 1

Where the cash went, FY2026

Scroll sideways to follow the money →

Operating cash flow → New warehouses & equipment (capex): $6.4BOperating cash flow → Dividends: $2.5BOperating cash flow → Buybacks: $848.0MOperating cash flow → Left over (mostly kept as cash): $6.1BOperating cash flow$15.8BNew warehouses & equipment (capex)$6.4BDividends$2.5BBuybacks$848.0MLeft over (mostly kept as cash)$6.1B

Capex 6,435 (US 5,122 · Canada 673 · Other International 640); dividends 2,458 ($5.54/share); buybacks 848. "Left over" = 15,817 − 6,435 − 2,458 − 848 = 6,076 (derived). Cash and short-term investments rose from 15,284 to 21,301. No special dividend in FY2026; the last was $15/share (~$6.7B) in FY2024. 1

Gross margin on net sales
11.09%
1
Operating margin
3.85%
1
Effective tax rate
24.7%
Cash taxes paid: $2.84B 1
Free cash flow
$9.4B
15,817 − 6,435 (derived) 1

Per employee

355,000 employees at fiscal year-end; 95% work in warehouses and distribution. 1

Revenue per employee
$853,955
303,154M ÷ 355,000 1
Profit per employee
$25,989
Net income ÷ employees 1
Operating income per employee
$32,915
1
Average hourly wage, US/Canada
~$31
"a little more than $31" incl. bonuses; top of scale $31.90 6
Retention, 1+ year employees
~94%
US and Canada 1
Full-time share
Not disclosed
The 10-K only states a target of at least 50% full-time 1

Where the money comes from

Costco reports three segments. Revenue inside "Other International" and by US state is not disclosed.

Total revenue by segment, FY20261

United States (incl. Puerto Rico)$219.8B
Canada$40.6B
Other International$42.8B

Segments1

SegmentRevenueOp. incomeWarehousesEmployeesFloor space
United States$219.8B$7.65B647232,00096.6M sq ft
Canada$40.6B$2.11B11558,00016.6M sq ft
Other International$42.8B$1.93B17765,00025.5M sq ft
Total$303.2B$11.69B939355,000138.7M sq ft

Other International warehouses by country

CountryWarehouses
Mexico43
Japan37
United Kingdom29
South Korea20
Australia15
Taiwan14
China7
Spain5
France3
Sweden2
Iceland1
New Zealand1

Revenue per country is not disclosed, so none is shown. 1

US revenue by state, FY2026 ESTIMATE

Alaska: $1.6B est. (5 warehouses)AK$1.6BMaine: $326.0M est. (1 warehouses)ME$326.0MVermont: $326.0M est. (1 warehouses)VT$326.0MNew Hampshire: $326.0M est. (1 warehouses)NH$326.0MWashington: $10.8B est. (33 warehouses)WA$10.8BIdaho: $2.6B est. (8 warehouses)ID$2.6BMontana: $1.6B est. (5 warehouses)MT$1.6BNorth Dakota: $652.0M est. (2 warehouses)ND$652.0MMinnesota: $4.6B est. (14 warehouses)MN$4.6BIllinois: $7.5B est. (23 warehouses)IL$7.5BWisconsin: $4.2B est. (13 warehouses)WI$4.2BMichigan: $5.9B est. (18 warehouses)MI$5.9BNew York: $6.8B est. (21 warehouses)NY$6.8BRI: no warehouses listedRInoneMassachusetts: $2.3B est. (7 warehouses)MA$2.3BOregon: $4.2B est. (13 warehouses)OR$4.2BNevada: $2.6B est. (8 warehouses)NV$2.6BWY: no warehouses listedWYnoneSouth Dakota: $326.0M est. (1 warehouses)SD$326.0MIowa: $1.3B est. (4 warehouses)IA$1.3BIndiana: $2.9B est. (9 warehouses)IN$2.9BOhio: $4.2B est. (13 warehouses)OH$4.2BPennsylvania: $3.9B est. (12 warehouses)PA$3.9BNew Jersey: $6.5B est. (20 warehouses)NJ$6.5BConnecticut: $2.6B est. (8 warehouses)CT$2.6BCalifornia: $57.2B est. (137 warehouses) — anchored to the 10-KCA$57.2BUtah: $5.2B est. (16 warehouses)UT$5.2BColorado: $5.2B est. (16 warehouses)CO$5.2BNebraska: $1.3B est. (4 warehouses)NE$1.3BMissouri: $2.6B est. (8 warehouses)MO$2.6BKentucky: $1.3B est. (4 warehouses)KY$1.3BWV: no warehouses listedWVnoneVirginia: $5.9B est. (18 warehouses)VA$5.9BMaryland: $3.6B est. (11 warehouses)MD$3.6BDelaware: $326.0M est. (1 warehouses)DE$326.0MArizona: $6.2B est. (19 warehouses)AZ$6.2BNew Mexico: $978.0M est. (3 warehouses)NM$978.0MKansas: $1.3B est. (4 warehouses)KS$1.3BArkansas: $326.0M est. (1 warehouses)AR$326.0MTennessee: $2.9B est. (9 warehouses)TN$2.9BNorth Carolina: $3.3B est. (10 warehouses)NC$3.3BSouth Carolina: $2.3B est. (7 warehouses)SC$2.3BDC: no warehouses listedDCnoneOklahoma: $1.3B est. (4 warehouses)OK$1.3BLouisiana: $1.3B est. (4 warehouses)LA$1.3BMississippi: $326.0M est. (1 warehouses)MS$326.0MAlabama: $1.6B est. (5 warehouses)AL$1.6BGeorgia: $5.5B est. (17 warehouses)GA$5.5BHawaii: $2.6B est. (8 warehouses)HI$2.6BTexas: $16.0B est. (49 warehouses)TX$16.0BFlorida: $11.4B est. (35 warehouses)FL$11.4BPuerto Rico: $1.6B est. (5 warehouses)PR$1.6B
Method and full table (48 states and territories)
  1. California = 26% of US segment revenue ($219.8B) = $57.2B. The 10-K says California was 26% of US net sales. 1
  2. Every other state = (US revenue − California) × its share of the 499 non-California warehouses ≈ $326M per warehouse. 12
  3. Ignores e-commerce, mid-year openings and differences in gas and business-center sales. Warehouse counts are from costco.com (636 listed vs 647 in the 10-K; DC not listed).
StateWarehousesEst. revenue
California from 10-K137$57.2B
Texas49$16.0B
Florida35$11.4B
Washington33$10.8B
Illinois23$7.5B
New York21$6.8B
New Jersey20$6.5B
Arizona19$6.2B
Michigan18$5.9B
Virginia18$5.9B
Georgia17$5.5B
Colorado16$5.2B
Utah16$5.2B
Minnesota14$4.6B
Ohio13$4.2B
Oregon13$4.2B
Wisconsin13$4.2B
Pennsylvania12$3.9B
Maryland11$3.6B
North Carolina10$3.3B
Indiana9$2.9B
Tennessee9$2.9B
Connecticut8$2.6B
Hawaii8$2.6B
Idaho8$2.6B
Missouri8$2.6B
Nevada8$2.6B
Massachusetts7$2.3B
South Carolina7$2.3B
Alabama5$1.6B
Alaska5$1.6B
Montana5$1.6B
Puerto Rico5$1.6B
Iowa4$1.3B
Kansas4$1.3B
Kentucky4$1.3B
Louisiana4$1.3B
Nebraska4$1.3B
Oklahoma4$1.3B
New Mexico3$978.0M
North Dakota2$652.0M
Arkansas1$326.0M
Delaware1$326.0M
Maine1$326.0M
Mississippi1$326.0M
New Hampshire1$326.0M
South Dakota1$326.0M
Vermont1$326.0M

California's implied ~$417M per warehouse vs ~$326M elsewhere matches the 10-K's note that California has more high-volume warehouses. California was also 39% of Costco's US state/local cash income tax ($209M of $531M). 1

The decisions behind the numbers

Membership model
~51%

of operating income from 1.9% of revenue

Membership fees were $5.9B, under 2% of revenue but about half of operating income (5,907 ÷ 11,685, derived). 84.1M paid members renew at 92.3% in the US and Canada and 89.8% worldwide. Executive members drove ~75.2% of net sales.1

Markup cap
14% / 15%

max markup on branded / Kirkland items

"No branded product is marked up by more than 14% and no Kirkland Signature product by more than 15%." The result: an 11.09% gross margin on net sales in FY2026.21

Kirkland Signature
~$86B

in 2024 sales

Launched in October 1995 with about two dozen items. The 10-K gives no dollar figure; the ~$86B estimate is from The Wall Street Journal.115

The $1.50 hot dog
$1.50

hot dog + soda since 1985

The combo price hasn't changed since 1985. To hold it, Costco brought hot dog production in-house.34

Wages and retention
~94%

retention after the first year

Average hourly pay in the US and Canada is a little over $31 including bonuses. Retention is about 94% for employees with a year or more. All overhead (SG&A, mostly wages and benefits) was 8.97% of revenue (27,190 ÷ 303,154, derived).61

Timeline

Big events, breakthroughs, people and places.

  1. 1954
    Sol Price founds FedMart, a membership discount store, which opens Dec 3, 1954. Jim Sinegal starts there that year unloading mattresses.13
    San Diego, CA
  2. Jul 12, 1976
    Price Club opens: the first membership warehouse club, in a converted Howard Hughes aircraft hangar. It still operates as Costco #401.710
    Sol & Robert Price · San Diego, CA
  3. Sep 15, 1983
    The first Costco warehouse opens.71
    Jim Sinegal & Jeff Brotman · Seattle, WA
  4. 1985
    The $1.50 hot dog and soda combo starts. The price hasn't changed since.3
  5. 1985
    Costco enters Canada.14
    Burnaby, BC
  6. Dec 5, 1985
    IPO on NASDAQ at $10 a share (about $1.67 split-adjusted).8
  7. 1987
    Headquarters moves to Kirkland, WA, later the source of the Kirkland Signature name.10
    Kirkland, WA
  8. 1992
    Price Club enters Mexico in a joint venture with Comercial Mexicana.10
    Mexico City
  9. Oct 21, 1993
    Merges with Price Club to form PriceCostco: 206 locations, $16B in sales.87
  10. 1993
    Enters the UK.15
    Thurrock
  11. 1994
    The Price family leaves to form PriceSmart. Rotisserie chicken starts.10
  12. 1994
    Enters South Korea.16
    Seoul
  13. Oct 1995
    Kirkland Signature launches with about two dozen items.11
  14. 1996
    Headquarters moves to Issaquah, WA.10
    Issaquah, WA
  15. Feb 1997
    Renamed Costco Companies; ticker COST.8
  16. 1997
    Enters Taiwan.17
    Kaohsiung
  17. 1998
    Costco.com launches.10
  18. 1999
    Enters Japan.18
    Hisayama, Fukuoka
  19. Aug 30, 1999
    Renamed Costco Wholesale Corp. and reincorporated in Washington.8
  20. May 2006
    Gold Star membership fee rises from $45 to $50.199
  21. 2009
    Enters Australia.10
    Melbourne Docklands
  22. Nov 2011
    Membership fee rises from $50 to $55.20
  23. Jan 1, 2012
    Sinegal retires; Craig Jelinek becomes CEO.10
  24. Dec 2012
    Special dividend of $7 a share.21
  25. 2014
    Enters Spain; opens an online store in China on Alibaba's Tmall.10
  26. Jan 30, 2015
    Special dividend of $5 a share.9
  27. 2016
    US co-branded credit card moves from American Express to Citi/Visa.10
  28. Apr 25, 2017
    Special dividend of $7 a share.9
  29. Jun 2017
    Membership fee rises from $55 to $60 (Executive $110 → $120).10
  30. Aug 1, 2017
    Co-founder Jeff Brotman dies; Hamilton James later becomes chairman.10
  31. 2017
    Enters France and Iceland.2324
    Villebon-sur-Yvette and Garðabær
  32. Aug 27, 2019
    First mainland China warehouse opens.10
    Shanghai
  33. Dec 2020
    Special dividend of $10 a share.22
  34. Sep 2022
    Enters New Zealand.10
    West Auckland
  35. Oct 2023
    Starts selling 1-oz gold bars.10
  36. Jan 1, 2024
    Ron Vachris becomes CEO, only the third. He started in 1982 as a Price Club forklift driver.10
  37. Jan 2024
    Special dividend of $15 a share, about $6.7B.1
  38. Sep 1, 2024
    Membership fee rises from $60 to $65 (Executive $120 → $130).10
  39. Oct 2022
    Enters Sweden.25
    Arninge, Täby (north of Stockholm)
  40. FY2026
    939 warehouses in 14 countries, $303.2B revenue, 355,000 employees, 84.1M paid members.1

Sources

  1. Costco Wholesale Corp., Form 10-K for the 52 weeks ended Aug 30, 2026 (filed Oct 7, 2026)
  2. Costco Canada customer service: markup policy
  3. Fortune: Costco promises the hot dog and drink combo will always be $1.50
  4. The Wall Street Journal (2022), on Costco's $1.50 hot dog and in-house hot dog production
  5. The Wall Street Journal, Jul 12, 2025: "The Pants Cost $20. They Explain $86 Billion of Costco Sales"
  6. CFO Dive: Costco raises minimum hourly wage (2025 earnings call)
  7. Costco: About us
  8. Costco Investor Relations: Investor FAQs
  9. Costco press releases (investor.costco.com)
  10. Wikipedia: Costco (secondary source)
  11. Supermarket News, Oct 9, 1995 (Kirkland Signature launch)
  12. Costco.com warehouse locations by state (counted Oct 26, 2026)
  13. Journal of San Diego History: Robert E. Price, "Sol Price: Retail Revolutionary, The FedMart Years 1954 to 1975"
  14. CBC Archives: The dawn of the Costco era in Canada (Burnaby, Oct 1985)
  15. Costco: Thurrock warehouse, opening date 11/30/1993
  16. Costco: Yangpyung (Seoul) warehouse, opening date 10/07/1994
  17. Costco Taiwan: About Costco (entered Taiwan 1997, first warehouse in Kaohsiung)
  18. Costco Wholesale Japan: company history (first Japan warehouse, Hisayama, 1999)
  19. Costco Form 10-K, fiscal 2006 (membership fee +$5 to $50, effective May 1, 2006)
  20. Costco press release, Oct 5, 2011 (fees to $55 effective Nov 1, 2011)
  21. Costco press release, Nov 28, 2012 ($7.00 special dividend, paid Dec 18, 2012)
  22. Costco press release, Nov 16, 2020 ($10 special dividend, paid Dec 11, 2020)
  23. Costco: Villebon-sur-Yvette warehouse, opening date 06/22/2017
  24. Iceland Monitor (Morgunblaðið), May 23, 2017: Costco opens in Iceland
  25. Dagens Handel, Oct 27, 2022: Costco opens its first Swedish warehouse in Arninge

Figures are as published by each source on the dates shown. Derived numbers say so and show their math.