RBC Capital reaffirmed a Sector Perform rating and a $1,000 price target on Costco Wholesale Corporation while raising its earnings forecasts, according to a research note reported on September 25. The firm lifted its FY26 EPS estimate by $0.21 to $20.76 and its FY27 estimate by $0.10 to $22.86, incorporating expected IEEPA tariff refunds in early 2027 along with updated margin, store expansion and capital expenditure assumptions. Costco reported FY26 total revenue of $303.15 billion, including $5.91 billion in recurring membership fees, an 11% year-over-year increase, and net income of $9.23 billion. Operating cash flow rose to $15.83 billion from $13.34 billion, funding $6.44 billion in capital expenditures, while cash and cash equivalents climbed to $20.21 billion from $14.16 billion and non-current debt fell to $3.91 billion from $5.71 billion. RBC flagged the stock's premium valuation, trading near 40x to 45x forward earnings, as its core bottleneck, and noted that Q4 net income of $2.998 billion included a non-recurring $0.15 EPS benefit from tariff refunds.
Costco Wholesale CorpRBC raised its FY26/FY27 EPS estimates for Costco while keeping a $1,000 target and Sector Perform rating.
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