Costco's Revenue Rockets From $254B to $270B as Its Expansion Formula Proves Unstoppable

The retail giant Costco Wholesale Corporation recently announced a remarkable surge in its financial performance for fiscal 2025, with annual revenue climbing from approximately US$254.5 billion to nearly US$275.2 billion.

This robust growth was underpinned by a nearly 10% rise in net income, reaching US$8.1 billion, demonstrating the success of its global expansion and membership-focused strategy across its worldwide warehouse network.

A Solid Surge: Sales, Memberships and E-commerce All Up

Costco's fiscal 2025 net sales reached US$269.9 billion, up from US$249.6 billion the previous year, representing an 8.1% growth. When adding membership fees, total revenue climbed to about US$275.2 billion. Notably, the fourth quarter ended with net sales of US$84.4 billion, rising 8.0% year-on-year, and membership fees also increased, a clear sign that growth remains broad-based.

Membership fee income rose by 14% in the fourth quarter, reaching US$1.724 billion. Costco's e-commerce arm saw strong momentum too, with online sales growing significantly up 13.6% in the fourth quarter underscoring the company's success in blending warehouse bulk retailing with digital convenience.

Industry observers suggest that Costco's ability to push total revenue close to the US$275 billion mark demonstrates robust demand from consumers seeking value bulk buying amid economic uncertainty.

Expansion Strategy: New Warehouses, Membership Growth, and Member Value

A key driver behind the revenue bump is Costco's ongoing expansion of its global footprint. The company reportedly opened 29 new warehouses in fiscal 2025 (26 net new locations), aimed at tapping both domestic and international markets. This brings Costco's total global warehouse count to 918.

This growth is complemented by a rise in paid memberships. According to investor-relations disclosures, membership fee income surged as membership numbers rose a core element of Costco's business model, which relies on subscription income in addition to merchandise sales.

The global membership renewal rate remained high at 89.8%, while the rate in the US and Canada was 92.3%, demonstrating exceptional customer loyalty. Costco's model remains focused on high volume, low-margin sales, bulk buying benefits, and strong member retention.

Analysts note that membership-based income gives the retailer stability and predictable cash flow, insulating it to some degree from economic swings that affect discretionary spending. The membership fee income represents over 74% of the company's operating income. With this dual engine so-called 'brick-and-mortar bulk + membership fee + online retail', the company appears to be weathering shifts in consumer habits better than many traditional retailers.

Looking Ahead: Momentum in 2026 and Beyond

Given its current trajectory, Costco is widely expected to continue riding this wave of success into 2026. The combination of expanding warehouse count, increasing membership sign-ups, and growth in e-commerce positions the retailer well for both sustained sales and profitability.

Moreover, as economic pressures prompt shoppers to seek value, Costco's bulk model and membership-based pricing could increasingly appeal to budget-conscious consumers especially families or cost-savers shopping for staples and everyday essentials.

Of course, challenges remain, supply-chain costs, inventory management across international warehouses, inflation pressures in some markets. Yet Costco's recent performance suggests its expansion formula is robust enough to meet those headwinds.

For now, the jump from roughly US$254 billion to nearly US$275 billion in revenue firmly underscores that Costco's growth strategy combining new locations, strong membership base, and e-commerce expansion remains remarkably resilient and broadly successful.