Costco reports a 92.2% U.S. and Canada membership renewal rate, with e-commerce growth driving sales amid high valuation concerns.
Costco Wholesale (NASDAQ: COST) reported a 92.2% membership renewal rate in the U.S. and Canada for Q3 2026, while its global renewal rate reached 89.7%. The company’s bulk sales model and private-label Kirkland Signature brand continue to foster customer loyalty, supporting steady revenue streams.
E-commerce growth accelerated, with site and app traffic rising 37% and digitally enabled comparable sales increasing 21.5% in the quarter. Despite meeting expectations, Costco’s stock dipped, reflecting investor caution over its high forward price-to-earnings ratio of 43.1.
The company’s strong membership metrics contrast with its valuation concerns, as market participants weigh long-term growth potential against near-term stock performance.