Costco vs Walmart: Revenue, Profit and Business Model
Costco reported $303.2B of revenue in FY2026 and $9.2B of net income. Walmart reported $713.2B of revenue in FY2026 and $21.9B of net income.
Latest financial snapshot
Financial summary
Costco
Costco's revenue is almost entirely merchandise: FY2026 net sales were $297.2B and membership fees were $5.907B, together $303.2B. Fees are under 2% of revenue but carry nearly full margin, so they make up a large share of operating income. Net income rose 13.9% to $9.226B ($20.76 per diluted share) from $8.099B in FY2025. Operating cash flow was $15.8B, capital spending was about $6.4B, and management plans about $7.5B of capex in FY2027. Q4 FY2026 included a one-time $0.15 per share benefit from IEEPA tariff refunds. Costco's gross margin is about 11% of sales and SG&A about 9%, a narrow spread that works only because of scale and fast inventory turns.
Walmart
Walmart's FY2026 total revenues rose 4.7% to $713.2 billion and net income attributable to Walmart rose to $21.9 billion from $19.4 billion in FY2025. In Q2 FY27 (quarter ended July 31, 2026), total revenues rose 5.9% to $187.9 billion and adjusted EPS was $0.81 versus $0.68 a year earlier. Adjusted operating income growth of about 17% in constant currency included a benefit from roughly $2.9 billion in IEEPA tariff refunds, much of which Walmart said it reinvested in prices. Walmart raised its full-year sales and operating income growth guidance with the Q2 report.
Revenue and profit by year
Costco
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $303.2B | $9.2B | 3.0% | +10.1% | Source |
| FY2025 | $275.2B | $8.1B | 2.9% | +8.2% | Source |
| FY2024 | $254.5B | $7.4B | 2.9% | +5.0% | Source |
| FY2023 | $242.3B | $6.3B | 2.6% | +6.8% | Source |
| FY2022 | $227B | $5.8B | 2.6% | +15.8% | Source |
| FY2021 | $195.9B | $5B | 2.6% | +17.5% | Source |
| FY2020 | $166.8B | $4B | 2.4% | +9.2% | Source |
| FY2019 | $152.7B | $3.7B | 2.4% | +7.9% | Source |
| FY2018 | $141.6B | $3.1B | 2.2% | +9.7% | Source |
| FY2017 | $129B | $2.7B | 2.1% | +8.7% | Source |
| FY2016 | $118.7B | $2.4B | 2.0% | — | Source |
Walmart
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $713.2B | $21.9B | 3.1% | +4.7% | Source |
| FY2025 | $681B | $19.4B | 2.9% | +5.1% | Source |
| FY2024 | $648.1B | $15.5B | 2.4% | +6.0% | Source |
| FY2023 | $611.3B | $11.7B | 1.9% | +6.7% | Source |
| FY2022 | $572.8B | $13.7B | 2.4% | +2.4% | Source |
| FY2021 | $559.2B | $13.5B | 2.4% | +6.7% | Source |
| FY2020 | $524B | $14.9B | 2.8% | +1.9% | Source |
| FY2019 | $514.4B | $6.7B | 1.3% | +2.8% | Source |
| FY2018 | $500.3B | $9.9B | 2.0% | +3.0% | Source |
| FY2017 | $485.9B | $13.6B | 2.8% | — | Source |
Where the revenue comes from
Costco
- Merchandise net sales~98%
Groceries, fresh food, household goods, electronics, gasoline, pharmacy and other goods sold in warehouses and online; $297.2B in FY2026.
- Membership fees~2%
Annual Gold Star, Business and Executive fees; $5.9B in FY2026 and a large share of operating profit despite being under 2% of revenue.
Walmart
- Walmart U.S.
Largest segment, roughly two-thirds of revenue
U.S. supercenters, discount stores, Neighborhood Markets, Walmart.com, marketplace, and Walmart Connect.
- Walmart International
Second-largest segment
Operations including Walmex in Mexico and Central America, Flipkart in India, Walmart Canada, and Walmart China.
- Sam's Club U.S.
Smallest segment
Membership warehouse club sales, fuel, and membership fees.
- Advertising, Membership, and Marketplace Services
Higher-margin income across segments
Global advertising grew 38% and membership fee revenue 17% in Q2 FY27.
Business model and strategy
Costco
How it makes money
Costco runs a membership warehouse club: shoppers pay an annual fee ($65 for Gold Star or Business, $130 for Executive in the U.S. and Canada since September 2024) to buy from a tightly edited assortment of roughly 4,000 items. Limited choice means huge volume per item, which gives Costco strong buying power with suppliers.
Growth strategy
Costco grows mostly by itself rather than through acquisitions. It opened 28 warehouses in FY2026 (25 net new) and plans 33 in FY2027, while pushing members to upgrade to Executive, which raises fee income and spending per household. Digital is the fastest-growing channel: digitally enabled sales topped $33B in FY2026 with site and app traffic up about 30%.
Competitive advantage
Costco's advantage is a loop that rivals find hard to copy: membership fees fund low prices, low prices drive renewal (92.3% in the U.S. and Canada in FY2026), and high volume on about 4,000 items earns better supplier terms. Markups capped near 14-15% build price trust, Kirkland Signature gives Costco its own quality benchmark, and high inventory turnover means the company often sells goods before paying suppliers.
Walmart
How it makes money
Most of Walmart's revenue comes from selling groceries, consumables, general merchandise, health and wellness products, and fuel through stores, clubs, and ecommerce. Walmart U.S. is the largest segment at roughly two-thirds of revenue, followed by Walmart International (including Walmex, Flipkart, Walmart Canada, and Walmart China) and Sam's Club U.S.
Growth strategy
Walmart is pushing store-fulfilled delivery, marketplace assortment, advertising, and membership while keeping its price position. In Q2 FY27 it reported 23% global ecommerce growth, 38% global advertising growth, 17% higher membership fee revenue, and U.S. marketplace sales up 52%.
Competitive advantage
Walmart's edge is purchasing scale, a dense U.S. store network that doubles as a fulfillment network, frequent grocery trips, and first-party purchase data that supports its advertising business.
Questions about Costco vs Walmart
Which company has higher revenue — Costco Wholesale Corporation or Walmart Inc.?
Costco Wholesale Corporation reported $303.2B (FY2026), while Walmart Inc. reported $713.2B (FY2026). By last reported revenue, Walmart Inc. is the larger business, with Costco Wholesale Corporation reporting a smaller revenue base.
What is the market cap of Costco Wholesale Corporation vs Walmart Inc.?
Costco Wholesale Corporation's market capitalisation stands at $397.1B, while Walmart Inc.'s is $790.0B. Walmart Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Costco Wholesale Corporation.
Which is more financially efficient — Costco Wholesale Corporation or Walmart Inc.?
Costco Wholesale Corporation generates $889k / employee in revenue per employee, while Walmart Inc. generates $340k / employee. Costco Wholesale Corporation shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Costco Wholesale Corporation and Walmart Inc. make money?
Costco Wholesale Corporation and Walmart Inc. generate revenue in fundamentally different ways. Costco Wholesale Corporation: Costco runs a membership warehouse club: shoppers pay an annual fee ($65 for Gold Star or Business, $130 for Executive in the U. Walmart Inc.: Most of Walmart's revenue comes from selling groceries, consumables, general merchandise, health and wellness products, and fuel through stores, clubs, and ecommerce.
Which company is valued higher relative to revenue — Costco Wholesale Corporation or Walmart Inc.?
On a price-to-sales (P/S) basis, Costco Wholesale Corporation trades at 1.3x P/S and Walmart Inc. at 1.1x P/S. Costco Wholesale Corporation commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Walmart Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Costco Wholesale Corporation bigger than Walmart Inc.?
By last reported revenue, Walmart Inc. ($713.2B (FY2026)) is the larger company compared to Costco Wholesale Corporation ($303.2B (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Costco vs Walmart overview