Costco Surpasses Q1 Earnings Projections with 6.4% Increase in Comparable Sales
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 12 2025
0mins
Should l Buy DLTR?
Source: NASDAQ.COM
Fiscal Performance: Costco reported first-quarter fiscal 2026 results with earnings of $4.34 per share, exceeding estimates, while total revenues reached $67.3 billion, slightly below expectations but up 8.3% year over year.
Membership Growth: The company saw a 5.2% increase in paid household members, reaching 81.4 million, and a strong membership renewal rate of 92.2% in the U.S. and Canada, contributing to revenue growth.
E-commerce and Sales Trends: Comparable sales rose 6.4% year over year, with e-commerce sales surging 20.5%, driven by improvements in personalization and app functionality, alongside strong performance in various product categories.
Expansion Plans: Costco plans to open 28 new warehouses in fiscal 2026, having already opened eight in the recent quarter, while maintaining a focus on capital expenditures for logistics and technology enhancements.
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Analyst Views on DLTR
Wall Street analysts forecast DLTR stock price to fall
19 Analyst Rating
8 Buy
6 Hold
5 Sell
Hold
Current: 128.430
Low
75.00
Averages
127.41
High
160.00
Current: 128.430
Low
75.00
Averages
127.41
High
160.00
About DLTR
Dollar Tree, Inc. is an operator of retail discount stores operating under the brand names of Dollar Tree and Dollar Tree Canada. The Company operates approximately 9,000 stores and 18 distribution centers across 48 contiguous states and five Canadian provinces. The Dollar Tree segment operates a discount variety of stores offering merchandise at the opening price point. The Dollar Tree segment includes its operations under the Dollar Tree and Dollar Tree Canada brands in the United States and Canada. Its Dollar Tree Canada stores carry a range of products such as kitchen and dining, cleaning supplies, food and beverages, health and beauty, toys, party supplies, stationery, craft supplies, seasonal decor, and others. It also offers customers same-day local delivery. The Company also offers Dollar Tree Gift Cards and can be purchased in stores and online and redeemed in any one of its store locations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Dollar Tree Shares Downgraded by BMO Capital
- Rating Downgrade: BMO Capital downgraded Dollar Tree's stock, resulting in a 1.6% decline in shares during recent trading, reflecting market concerns about the company's future performance and potentially impacting investor confidence.
- Market Reaction: The downgrade has drawn investor attention, likely leading to increased selling pressure that could affect Dollar Tree's short-term stock performance and heighten market uncertainty.
- Financial Outlook Impact: The downgrade may raise Dollar Tree's financing costs, subsequently affecting its future expansion plans and profitability, particularly in a highly competitive retail environment.
- Investor Confidence Fluctuation: As ratings change, investors may reassess their investment strategies regarding Dollar Tree, leading to fluctuations in its market performance and impacting the overall stability of investment portfolios.
See More
Latest Wall Street Rating Updates
- Coinbase Rating Maintained: Bernstein reiterates Coinbase as outperform, noting that despite Q4 revenue missing estimates by 3% and a 28% drop in adjusted EPS to $0.66, the stock remains undervalued, indicating long-term optimism.
- Instacart's Strong Performance: Barclays maintains an overweight rating on Instacart, highlighting its rare beat-and-raise earnings report in the internet earnings cycle, suggesting a unique advantage in a competitive market that may attract more investor interest.
- Airbnb Upgraded to Buy: Deutsche Bank upgrades Airbnb from hold to buy, stating that while it faces AI disruption risks, its unique supply chain offers more insulation compared to peers, which is likely to draw more investor attention.
- CrowdStrike's Attractive Valuation: HSBC upgrades CrowdStrike from hold to buy, citing attractive current valuation and projecting a non-GAAP EPS CAGR of 38.3% over FY26-29, indicating strong growth potential.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, indicating a shift in market sentiment that could influence investor decisions and market trends.
- Overview of Updates: While specific upgrades and downgrades are not detailed, the overall rating changes reflect analysts' sensitivity to market sentiment, potentially prompting investors to reassess their stock holdings.
- Investor Focus: For those considering buying DLTR stock, analysts' opinions will serve as a crucial reference point, likely impacting their investment decisions and the stock's market performance.
- Market Dynamics Impact: Changes in analyst ratings not only affect individual stock performance but may also create ripple effects on overall market sentiment and trends, necessitating close attention from investors to these developments.
See More
Dollar Tree Stock Falls Approximately 3% Following BMO's 'Underperform' Downgrade
- Market Reaction: Dollar Tree shares have decreased by approximately 3% following a downgrade by BMO.
- Analyst Assessment: The downgrade was based on the company's performance being classified as 'underperforming'.
See More
Discount Store Performance Signals Economic Trends
- Consumer Behavior Shift: Under financial pressure, budget-conscious consumers are opting for private-label goods, leading to increased performance for discount stores like Walmart, which reflects the strained economic conditions of households.
- Dollar Tree Customer Growth: In the most recent quarter, Dollar Tree saw an additional 3 million households visit its stores, with 60% of these new customers earning over $100,000, indicating its appeal among higher-income demographics.
- High-Income Market Expansion: More than a quarter of Dollar Tree stores opened last year were located in areas with median household incomes exceeding six figures, highlighting its strategic expansion into affluent neighborhoods to capture high-income consumer spending.
- Sales Potential Analysis: If Dollar Tree can encourage higher-income occasional shoppers to visit just one more time per year, it could result in an additional $1 billion in annual sales, demonstrating the business rationale behind targeting affluent consumers.
See More
Discount Retailers Show Strong Performance Amid Inflation
- Discount Retail Stock Performance: As of 2026, discount retail stocks in the S&P 500, such as Walmart and Costco, have significantly outperformed the S&P 500 index, with Walmart up 5.8% year-to-date and 26.6% over the past 52 weeks, indicating strong consumer demand for discount retail.
- Consumer Shift to Discount Stores: Due to inflation, 28% of high-income households shopped at discount chains in 2025, up from 20% four years earlier, suggesting that discount retailers are attracting a broader consumer base.
- Same-Store Sales Growth: In Q4 2025, same-store sales increased by 4.2% at Walmart and 5.7% at Costco, reflecting consumer preference for discounted goods in a high-price environment, further boosting these retailers' performance.
- Future Inflation Expectations: Although the inflation rate has decreased from 9% in June 2022 to around 2.7%, economists expect inflation to remain elevated through 2026, which will continue to benefit discount retailers as consumers remain price-sensitive.
See More
Dollar Tree Shares Downgraded by BMO Capital
- Rating Downgrade: BMO Capital downgraded Dollar Tree's stock, resulting in a 1.6% decline in shares during recent trading, reflecting market concerns about the company's future performance and potentially impacting investor confidence.
- Market Reaction: The downgrade has drawn investor attention, likely leading to increased selling pressure that could affect Dollar Tree's short-term stock performance and heighten market uncertainty.
- Financial Outlook Impact: The downgrade may raise Dollar Tree's financing costs, subsequently affecting its future expansion plans and profitability, particularly in a highly competitive retail environment.
- Investor Confidence Fluctuation: As ratings change, investors may reassess their investment strategies regarding Dollar Tree, leading to fluctuations in its market performance and impacting the overall stability of investment portfolios.
See More
Latest Wall Street Rating Updates
- Coinbase Rating Maintained: Bernstein reiterates Coinbase as outperform, noting that despite Q4 revenue missing estimates by 3% and a 28% drop in adjusted EPS to $0.66, the stock remains undervalued, indicating long-term optimism.
- Instacart's Strong Performance: Barclays maintains an overweight rating on Instacart, highlighting its rare beat-and-raise earnings report in the internet earnings cycle, suggesting a unique advantage in a competitive market that may attract more investor interest.
- Airbnb Upgraded to Buy: Deutsche Bank upgrades Airbnb from hold to buy, stating that while it faces AI disruption risks, its unique supply chain offers more insulation compared to peers, which is likely to draw more investor attention.
- CrowdStrike's Attractive Valuation: HSBC upgrades CrowdStrike from hold to buy, citing attractive current valuation and projecting a non-GAAP EPS CAGR of 38.3% over FY26-29, indicating strong growth potential.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, indicating a shift in market sentiment that could influence investor decisions and market trends.
- Overview of Updates: While specific upgrades and downgrades are not detailed, the overall rating changes reflect analysts' sensitivity to market sentiment, potentially prompting investors to reassess their stock holdings.
- Investor Focus: For those considering buying DLTR stock, analysts' opinions will serve as a crucial reference point, likely impacting their investment decisions and the stock's market performance.
- Market Dynamics Impact: Changes in analyst ratings not only affect individual stock performance but may also create ripple effects on overall market sentiment and trends, necessitating close attention from investors to these developments.
See More
Dollar Tree Stock Falls Approximately 3% Following BMO's 'Underperform' Downgrade
- Market Reaction: Dollar Tree shares have decreased by approximately 3% following a downgrade by BMO.
- Analyst Assessment: The downgrade was based on the company's performance being classified as 'underperforming'.
See More
Discount Store Performance Signals Economic Trends
- Consumer Behavior Shift: Under financial pressure, budget-conscious consumers are opting for private-label goods, leading to increased performance for discount stores like Walmart, which reflects the strained economic conditions of households.
- Dollar Tree Customer Growth: In the most recent quarter, Dollar Tree saw an additional 3 million households visit its stores, with 60% of these new customers earning over $100,000, indicating its appeal among higher-income demographics.
- High-Income Market Expansion: More than a quarter of Dollar Tree stores opened last year were located in areas with median household incomes exceeding six figures, highlighting its strategic expansion into affluent neighborhoods to capture high-income consumer spending.
- Sales Potential Analysis: If Dollar Tree can encourage higher-income occasional shoppers to visit just one more time per year, it could result in an additional $1 billion in annual sales, demonstrating the business rationale behind targeting affluent consumers.
See More
Discount Retailers Show Strong Performance Amid Inflation
- Discount Retail Stock Performance: As of 2026, discount retail stocks in the S&P 500, such as Walmart and Costco, have significantly outperformed the S&P 500 index, with Walmart up 5.8% year-to-date and 26.6% over the past 52 weeks, indicating strong consumer demand for discount retail.
- Consumer Shift to Discount Stores: Due to inflation, 28% of high-income households shopped at discount chains in 2025, up from 20% four years earlier, suggesting that discount retailers are attracting a broader consumer base.
- Same-Store Sales Growth: In Q4 2025, same-store sales increased by 4.2% at Walmart and 5.7% at Costco, reflecting consumer preference for discounted goods in a high-price environment, further boosting these retailers' performance.
- Future Inflation Expectations: Although the inflation rate has decreased from 9% in June 2022 to around 2.7%, economists expect inflation to remain elevated through 2026, which will continue to benefit discount retailers as consumers remain price-sensitive.
See More
