The Revenue LinesWide moat

Costco Wholesale (COST) — moat facet

One model in three places: the United States is three-quarters of the revenue, Canada the best margin, the rest of the world the fastest growth.

Costco reports three segments, and they run the same business in different places: the same membership, the same warehouse, the same short list of items. In fiscal 2025 the United States brought in $200,046 million of total revenue, Canada $36,923 million and Other International $38,266 million, out of $275,235 million.1

Share of FY2025 revenue and of operating income (%)RevenueOperating incomeUnited States72.7%66.2%Canada13.4%17.8%Other International13.9%15.9%Costco Form 10-K FY2025, segment note
Canada earns a bigger share of the profit than of the sales; the United States the reverse.

The shares of profit are not the shares of sales. The American segment was about 72.7% of revenue and 66.2% of operating income; Canada 13.4% of revenue and 17.8% of operating income; Other International 13.9% and 15.9%.23 Operating income was $6,878 million, $1,849 million and $1,656 million, margins of about 3.44%, 5.01% and 4.33%.45

The reason is the density of each estate. Canada's 110 warehouses averaged about $336 million of revenue each in fiscal 2025, against about $318 million across 629 in the United States and about $219 million across 175 elsewhere.67 A warehouse's costs are largely fixed, so the more each building sells, the more of every dollar it keeps.

The latest quarter moved all three in the same direction. In the twelve weeks to 10 May 2026 revenue rose about 11.0% in the United States, 13.1% in Canada and 13.0% in Other International, and operating income about 9.3%, 12.4% and 18.8%.89 Excluding gasoline prices and currency, comparable sales grew 7%, 6% and 6%.10

These pages take each segment in turn. The membership economics that make all three work are argued under The Dues Are the Profit, and the international expansion case is under The Countries With Seven Warehouses; the pages here carry each segment's own series.

The number that ties the three together is the American share of operating income: 66.2% in fiscal 2025 and about 65.0% over the first thirty-six weeks of fiscal 2026.1112 A steady decline would mean the company's growth has moved abroad, where the warehouses sell less each.

Moat trajectory: Holding steady

All three segments grew revenue 11-13% in the latest quarter, and the United States still earned about two-thirds of operating income.

The number that tests this moat
Moat Explorer calc
U.S. share of segment operating income
66.2% in FY2025; about 65.0% over 36 weeks of FY2026

A steady decline would mean growth has moved to the segments whose warehouses sell less each.

How it's calculated: 6,878 / 10,383 for FY2025; 5,124 / 7,884 for the 36 weeks to 10 May 2026.
Source: Costco Form 10-K FY2025 and Q3 FY2026 10-Q (Moat Explorer calc) ↗
Dig deeper
DIG DEEPER 01
United States
Two hundred billion dollars of revenue at 3.44 cents on the dollar, the thinnest margin of the three.
DIG DEEPER 02
Canada
The densest warehouses Costco has: 12% of the buildings and 18% of the operating income.
DIG DEEPER 03
Other International
Twelve countries growing about 11% a year, on warehouses that each sell about two-thirds of an American one.
References
  1. ReportedIn fiscal 2025 the United States brought in $200,046 million of total revenue, Canada $36,923 million and Other International $38,266 million, out of $275,235 million.
    Costco Wholesale Form 10-K FY2025 - segment note 2023-2025: United States total revenue $176,630M/$184,143M/$200,046M, merchandise costs $174,021M and SG&A $19,147M (2025), operating income $5,392M/$6,217M/$6,878M; Canada $33,056M/$34,874M/$36,923M, operating income $1,448M/$1,648M/$1,849M; Other International $32,604M/$35,436M/$38,266M, operating income $1,274M/$1,420M/$1,656M; total revenue $275,235M, operating income $10,383M, membership fees $5,323M; U.S. additions to property and equipment $3,288M (2023) and $4,215M (2025), depreciation $1,895M; Canada additions $281M and $580M, total assets $7,304M; U.S. total assets $54,862M; Other International total assets $14,933M; 914 warehouses: 629 U.S. (512 owned), 110 Canada (94 owned), 175 Other International in Mexico 42, Japan 37, U.K. 29, Korea 20, Australia 15, Taiwan 14, China 7, Spain 5, France 2, Sweden 2, Iceland 1, New Zealand 1; floor space 93.6M/15.9M/25.2M sq ft; employees 223,000/55,000/63,000; changes in net sales and comparable sales by segment 2023-2025 — FY2023-FY2025 (ended August 31, 2025) · publ. October 2025 · source ↗
  2. ReportedThe American segment was about 72.7% of revenue and 66.2% of operating income; Canada 13.4% of revenue and 17.8% of operating income; Other International 13.9% and 15.9%.
    Costco Wholesale Form 10-K FY2025 - segment note 2023-2025: United States total revenue $176,630M/$184,143M/$200,046M, merchandise costs $174,021M and SG&A $19,147M (2025), operating income $5,392M/$6,217M/$6,878M; Canada $33,056M/$34,874M/$36,923M, operating income $1,448M/$1,648M/$1,849M; Other International $32,604M/$35,436M/$38,266M, operating income $1,274M/$1,420M/$1,656M; total revenue $275,235M, operating income $10,383M, membership fees $5,323M; U.S. additions to property and equipment $3,288M (2023) and $4,215M (2025), depreciation $1,895M; Canada additions $281M and $580M, total assets $7,304M; U.S. total assets $54,862M; Other International total assets $14,933M; 914 warehouses: 629 U.S. (512 owned), 110 Canada (94 owned), 175 Other International in Mexico 42, Japan 37, U.K. 29, Korea 20, Australia 15, Taiwan 14, China 7, Spain 5, France 2, Sweden 2, Iceland 1, New Zealand 1; floor space 93.6M/15.9M/25.2M sq ft; employees 223,000/55,000/63,000; changes in net sales and comparable sales by segment 2023-2025 — FY2023-FY2025 (ended August 31, 2025) · publ. October 2025 · source ↗
  3. Moat Explorer calcThe American segment was about 72.7% of revenue and 66.2% of operating income; Canada 13.4% of revenue and 17.8% of operating income; Other International 13.9% and 15.9%.
    Moat Explorer calculation from Costco's Forms 10-K FY2016-FY2025 and the Q3 FY2026 10-Q: segment shares of revenue and operating income, operating margins, revenue per warehouse, compound growth rates, operating income over segment total assets — FY2014 to Q3 FY2026 · publ. 2026-09-23 · source ↗
  4. ReportedOperating income was $6,878 million, $1,849 million and $1,656 million, margins of about 3.44%, 5.01% and 4.33%.
    Costco Wholesale Form 10-K FY2025 - segment note 2023-2025: United States total revenue $176,630M/$184,143M/$200,046M, merchandise costs $174,021M and SG&A $19,147M (2025), operating income $5,392M/$6,217M/$6,878M; Canada $33,056M/$34,874M/$36,923M, operating income $1,448M/$1,648M/$1,849M; Other International $32,604M/$35,436M/$38,266M, operating income $1,274M/$1,420M/$1,656M; total revenue $275,235M, operating income $10,383M, membership fees $5,323M; U.S. additions to property and equipment $3,288M (2023) and $4,215M (2025), depreciation $1,895M; Canada additions $281M and $580M, total assets $7,304M; U.S. total assets $54,862M; Other International total assets $14,933M; 914 warehouses: 629 U.S. (512 owned), 110 Canada (94 owned), 175 Other International in Mexico 42, Japan 37, U.K. 29, Korea 20, Australia 15, Taiwan 14, China 7, Spain 5, France 2, Sweden 2, Iceland 1, New Zealand 1; floor space 93.6M/15.9M/25.2M sq ft; employees 223,000/55,000/63,000; changes in net sales and comparable sales by segment 2023-2025 — FY2023-FY2025 (ended August 31, 2025) · publ. October 2025 · source ↗
  5. Moat Explorer calcOperating income was $6,878 million, $1,849 million and $1,656 million, margins of about 3.44%, 5.01% and 4.33%.
    Moat Explorer calculation from Costco's Forms 10-K FY2016-FY2025 and the Q3 FY2026 10-Q: segment shares of revenue and operating income, operating margins, revenue per warehouse, compound growth rates, operating income over segment total assets — FY2014 to Q3 FY2026 · publ. 2026-09-23 · source ↗
  6. ReportedCanada's 110 warehouses averaged about $336 million of revenue each in fiscal 2025, against about $318 million across 629 in the United States and about $219 million across 175 elsewhere.
    Costco Wholesale Form 10-K FY2025 - segment note 2023-2025: United States total revenue $176,630M/$184,143M/$200,046M, merchandise costs $174,021M and SG&A $19,147M (2025), operating income $5,392M/$6,217M/$6,878M; Canada $33,056M/$34,874M/$36,923M, operating income $1,448M/$1,648M/$1,849M; Other International $32,604M/$35,436M/$38,266M, operating income $1,274M/$1,420M/$1,656M; total revenue $275,235M, operating income $10,383M, membership fees $5,323M; U.S. additions to property and equipment $3,288M (2023) and $4,215M (2025), depreciation $1,895M; Canada additions $281M and $580M, total assets $7,304M; U.S. total assets $54,862M; Other International total assets $14,933M; 914 warehouses: 629 U.S. (512 owned), 110 Canada (94 owned), 175 Other International in Mexico 42, Japan 37, U.K. 29, Korea 20, Australia 15, Taiwan 14, China 7, Spain 5, France 2, Sweden 2, Iceland 1, New Zealand 1; floor space 93.6M/15.9M/25.2M sq ft; employees 223,000/55,000/63,000; changes in net sales and comparable sales by segment 2023-2025 — FY2023-FY2025 (ended August 31, 2025) · publ. October 2025 · source ↗
  7. Moat Explorer calcCanada's 110 warehouses averaged about $336 million of revenue each in fiscal 2025, against about $318 million across 629 in the United States and about $219 million across 175 elsewhere.
    Moat Explorer calculation from Costco's Forms 10-K FY2016-FY2025 and the Q3 FY2026 10-Q: segment shares of revenue and operating income, operating margins, revenue per warehouse, compound growth rates, operating income over segment total assets — FY2014 to Q3 FY2026 · publ. 2026-09-23 · source ↗
  8. ReportedIn the twelve weeks to 10 May 2026 revenue rose about 11.0% in the United States, 13.1% in Canada and 13.0% in Other International, and operating income about 9.3%, 12.4% and 18.8%.
    Costco Wholesale Form 10-Q, quarter ended May 10, 2026 - segment revenue and operating income, 12 and 36 weeks: United States $51,434M/$46,318M and $1,873M/$1,713M (36 weeks $149,934M, $5,124M); Canada $9,410M/$8,321M and $506M/$450M (36 weeks $27,774M/$25,021M, $1,416M/$1,215M); Other International $9,683M/$8,566M and $436M/$367M; total operating income $7,884M (36 weeks); U.S. additions to property and equipment $1,143M against $846M; comparable sales U.S. 9%, Canada 11%, Other International 11%, excluding gasoline and currency 7%, 6% and 6% (prior year 8%, 8%, 9%); 928 warehouses: 637 U.S., 115 Canada, three in France — Q3 FY2026 (12 weeks ended May 10, 2026) · publ. June 2026 · source ↗
  9. Moat Explorer calcIn the twelve weeks to 10 May 2026 revenue rose about 11.0% in the United States, 13.1% in Canada and 13.0% in Other International, and operating income about 9.3%, 12.4% and 18.8%.
    Moat Explorer calculation from Costco's Forms 10-K FY2016-FY2025 and the Q3 FY2026 10-Q: segment shares of revenue and operating income, operating margins, revenue per warehouse, compound growth rates, operating income over segment total assets — FY2014 to Q3 FY2026 · publ. 2026-09-23 · source ↗
  10. ReportedExcluding gasoline prices and currency, comparable sales grew 7%, 6% and 6%.
    Costco Wholesale Form 10-Q, quarter ended May 10, 2026 - segment revenue and operating income, 12 and 36 weeks: United States $51,434M/$46,318M and $1,873M/$1,713M (36 weeks $149,934M, $5,124M); Canada $9,410M/$8,321M and $506M/$450M (36 weeks $27,774M/$25,021M, $1,416M/$1,215M); Other International $9,683M/$8,566M and $436M/$367M; total operating income $7,884M (36 weeks); U.S. additions to property and equipment $1,143M against $846M; comparable sales U.S. 9%, Canada 11%, Other International 11%, excluding gasoline and currency 7%, 6% and 6% (prior year 8%, 8%, 9%); 928 warehouses: 637 U.S., 115 Canada, three in France — Q3 FY2026 (12 weeks ended May 10, 2026) · publ. June 2026 · source ↗
  11. ReportedThe number that ties the three together is the American share of operating income: 66.2% in fiscal 2025 and about 65.0% over the first thirty-six weeks of fiscal 2026.
    Costco Wholesale Form 10-Q, quarter ended May 10, 2026 - segment revenue and operating income, 12 and 36 weeks: United States $51,434M/$46,318M and $1,873M/$1,713M (36 weeks $149,934M, $5,124M); Canada $9,410M/$8,321M and $506M/$450M (36 weeks $27,774M/$25,021M, $1,416M/$1,215M); Other International $9,683M/$8,566M and $436M/$367M; total operating income $7,884M (36 weeks); U.S. additions to property and equipment $1,143M against $846M; comparable sales U.S. 9%, Canada 11%, Other International 11%, excluding gasoline and currency 7%, 6% and 6% (prior year 8%, 8%, 9%); 928 warehouses: 637 U.S., 115 Canada, three in France — Q3 FY2026 (12 weeks ended May 10, 2026) · publ. June 2026 · source ↗
  12. Moat Explorer calcThe number that ties the three together is the American share of operating income: 66.2% in fiscal 2025 and about 65.0% over the first thirty-six weeks of fiscal 2026.
    Moat Explorer calculation from Costco's Forms 10-K FY2016-FY2025 and the Q3 FY2026 10-Q: segment shares of revenue and operating income, operating margins, revenue per warehouse, compound growth rates, operating income over segment total assets — FY2014 to Q3 FY2026 · publ. 2026-09-23 · source ↗
Sources
Generated September 23, 2026