Costco’s Q3 earnings highlight pharmacy growth driven by GLP-1 drugs, Medicare flex cards, and expanded mail-order services.
Costco’s pharmacy segment led ancillary business growth in Q3 2026, with CFO Gary Millerchip citing significant market share gains. The expansion was fueled by rising demand for GLP-1 medications like Wegovy and Ozempic, inclusion in its Member Prescription Program, and broader Medicare D over-the-counter flex card acceptance.
The retailer also reported strong performance in pet medications and expanded mail-order and specialty pharmacy offerings. Pharmacy revenue growth outpaced other segments, reflecting Costco’s push to diversify beyond bulk retail into higher-margin services.
Millerchip noted the strategy aligns with Costco’s broader shift toward enhancing membership value through healthcare and prescription savings, a key differentiator in the competitive retail landscape.