Bullish Points:
1. Net sales for the quarter increased by 8% to $65,978 million, driven by an increase in comparable sales and sales at 25 net new warehouses.
2. Net income for the quarter was $2,001 million, an increase from $1,798 million in the same period last year, with diluted earnings per share rising to $4.50 from $4.04.
3. Membership fee revenue increased by 14% to $1,329 million, primarily driven by membership fee increases and new member sign-ups.
4. Gross margin as a percentage of net sales increased by four basis points, positively impacted by warehouse ancillary and other businesses, primarily due to pharmacy and hearing aids.
5. Cash and cash equivalents increased to $16,217 million from $14,161 million at the end of August 2025.
6. Long-term debt, excluding the current portion, decreased slightly to $5,666 million from $5,713 million at the end of August 2025.
7. A quarterly cash dividend of $1.30 per share was declared and paid during the quarter.
8. The company repurchased 225,000 shares of common stock at an average price of $932.02 per share, totaling approximately $210 million.
Bearish Points:
1. Selling, general and administrative (SG&A) expenses as a percentage of net sales increased by one basis point, impacted by a charge related to a tax assessment for prior years.
2. The effective tax rate for the quarter was 22.5%, compared to 22.0% in the previous year.
The final result you summarize based on positive and negative content needs to be objective, neutral, and dialectical.
For more information, you can read the original text of Costco(COST)'s financial report
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