Why did Costco stock fall after beating earnings?

Shares slipped because the market focused on an EBITDA miss and valuation risk after a long rally. Even when revenue and EPS beat, premium stocks can trade lower if cash flow or margins do not match lofty expectations. Short-term profit taking also plays a role after strong runs.

What stood out in the latest Costco earnings?

Revenue of $69.6 billion USD rose 9.2% year over year, GAAP EPS reached $4.58 USD, and same-store sales rose 7.4%. These metrics highlight resilient demand and steady membership value. Investors now want clarity on margin trends and whether operating leverage can improve through the rest of the fiscal year.

Is Costco stock expensive today?

The stock trades near 52.8x trailing EPS, with EV/EBITDA around 31x and price-to-sales roughly 1.55x. That is a premium versus many retailers. The valuation can hold if comps and margins keep improving. If growth cools, multiple compression could weigh on future returns for Canadian investors.

What technical levels should I watch on COST?

Key references include the $995 to $1,000 area, the lower Bollinger Band near $972, and the 50- and 200-day moving averages around $951. RSI near 50 signals neutral momentum. A firm close above the mid-$990s could stabilize the tape, while a break below $972 may invite weakness.

What matters most for Costco stock in Canada?

Same-store sales, margins, and membership health are primary. For Canadian investors, consider FX effects since COST trades in USD and results are reported in USD. Tracking traffic versus ticket, private-label mix, and SG&A discipline will help gauge the durability of earnings and the valuation premium.

Global Market Insights

COST Stock Today: Sales Top Estimates, Shares Dip After Q2 — March 5

ByHuzaifa Zahoor March 6, 2026March 6, 2026

Costco stock is in focus for Canadian investors after second-quarter results on March 5. Revenue reached $69.6 billion USD, up 9.2% year over year, and GAAP EPS came in at $4.58 USD, both ahead of estimates. Same-store sales rose 7.4%, signaling healthy traffic and basket size. Still, shares eased as the market weighed an EBITDA miss and a premium valuation. We explain what moved the tape, what to watch next, and how today’s levels set up the near-term view.