Tue May 27 14:00:00 UTC 2025: **Costco Earnings Expected to Rise, Analysts Bullish but See Limited Stock Growth**
**[City, State] -** Warehouse retail giant Costco Wholesale (COST) is slated to release its fiscal third-quarter earnings report after market close on Thursday, and analysts are largely optimistic about the company’s performance. While sales and profits are projected to increase, experts don’t foresee significant upward movement in the stock price, which currently hovers around $1,000.
Ten analysts tracked by Visible Alpha rate Costco stock as a “buy,” with six others recommending a “hold.” The average price target is $1,058.40, indicating a potential upside of approximately 5% from the stock’s recent closing price.
Sales are expected to rise by 8% year-over-year to $63.19 billion, and earnings per share are predicted to climb 14% to $4.31. Costco is also anticipated to report a growth in paying members, reaching 79.6 million compared to 78.4 million in the previous quarter.
UBS analysts highlighted Costco’s strong position to navigate potential tariff-related challenges. They noted the company’s ability to quickly adapt its product offerings and replace items affected by tariffs, maintaining competitive pricing. The benefits of the membership fee increase, implemented in September, are also expected to contribute positively to profits in the latter half of fiscal year 2025 and into fiscal year 2026. Analysts believe that high-margin membership revenue will give Costco more flexibility to absorb the impact of tariffs without significantly increasing prices for consumers.
“There’s probably not a lot that can come from this print that will change the market’s perception that [Costco] is a good place to be,” UBS analysts wrote. “Though, its superior position, levers, and capabilities to manage the upcoming headwinds will probably be more evident as the impact of tariffs become translucent in the coming months.”
Despite a volatile year, Costco shares have seen a positive trend in 2025, with an overall increase of approximately 10%.