Costco Posts Record Gas Volumes as Members Flock to Cheaper Fuel Amid Middle East Tensions
Costco Wholesale reported record-breaking gasoline volumes in its fiscal third quarter as rising fuel prices drove customers to its stations, with the company also beating Wall Street revenue expectations for the period ended May 10, 2026.
Record Gas Volume and Membership Growth
Chief Executive Officer Ron Vachris said the final five weeks of the quarter became Costco’s top five volume weeks ever as customers sought cheaper gas amid the war in the Middle East. The company noted that first-time members joined specifically to access its gas stations. "We believe this will drive even greater loyalty with these members in the future, as members who use our gas stations typically spend more with us in the warehouse," Vachris said on a call with analysts. "Against the backdrop of ongoing macro uncertainty, our focus is providing quality goods and services at the lowest possible price."
Financial Results
Costco reported net sales of $69.15 billion for the fiscal third quarter, up 11.6% from the prior year. Adjusted comparable sales rose 6.6%, while digital sales grew nearly 21%. Net income reached $2.19 billion, or $4.93 per share, compared with $1.9 billion, or $4.28 per share, in the year-ago period. Revenue increased to $70.53 billion from $63.2 billion a year earlier. Wall Street analysts surveyed by LSEG had expected earnings per share of $4.93 on revenue of $69.81 billion. Paid memberships grew 4.1% during the quarter, and traffic on Costco’s website and app surged 37%. Top sales categories included pharmacy, home furnishings, and gold and jewelry.
Tariff Dispute and Refund Plans
Costco has been at the center of a tariff dispute with the Trump administration following a Supreme Court decision that invalidated some of President Donald Trump’s levies on foreign imports. The retailer previously stated it would lower prices if it received tariff refunds. On Thursday, Vachris said the company has begun submitting tariff refund claims and expects to receive refunds on approved claims on a rolling basis over the next few months. Costco plans to return those funds to members "in some form," with details depending on actual returns. "Our goal is to be the first to lower prices and the last to raise them," Vachris said.
Market Context
As of May 28, 2026, the United States dollar traded at 71.37 Russian rubles (change: +0.47), the euro at 83.69 Russian rubles (change: +0.97), Bitcoin at $73,738 (24-hour change: -0.8%), and crude oil was estimated at approximately $72 per barrel.