Costco stock slides as Medicare plans widen the story
Published on 08/18/2026 at 14:03 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Costco Wholesale (US22160K1051) stock slipped 0.79% to $953.50 in the August 17, 2026 close, leaving the retailer with a market cap of $422.86 billion and a 52-week range of $844.06 to $1,096.50.
The move came as the company moved into a new Medicare initiative with SCAN Group, while its latest reported quarter still showed $70.53 billion in revenue and $4.93 in earnings per share, versus consensus for $70.12 billion and $4.94.
Medicare broadens the mix
On August 18, 2026, Costco said it would offer Medicare Advantage plans in two states and a Medicare supplement in a third state through its partnership with SCAN Group. The launch extends the membership model into health coverage and adds a second growth narrative beyond warehouse sales.
That matters because the most recent reported quarter already showed a meaningful base: membership fee income reached $1.373 billion in fiscal third quarter 2026, up 10.7% from a year earlier. Executive memberships also rose to 41.2 million, up 9.6% year over year, a sign that higher-value members still keep paying up for the program.
Quarterly numbers stay firm
Fiscal third-quarter 2026 revenue increased 11.6% year over year to $70.53 billion, while net income rose 15.2% to $2.04 billion. Digitally enabled comparable sales climbed 21.5%, and site and app traffic increased 37%, showing that e-commerce still adds a measurable layer to the business.
Those figures also frame valuation. Costco traded at a trailing P/E of 47.96 and a forward multiple of 42.85 in the latest market snapshots, while analysts were modeling 20.42 in EPS for the current fiscal year and an average price target of $1,059.53.
What the market is pricing
The stock closed August 17, 2026 at $953.50, with extended trading at $960.85 and volume of 1.24 million shares. That puts the shares below the 52-week high of $1,096.50, but still far above the year low.
For investors, the near-term question is whether the Medicare rollout can add a fresh revenue stream without distracting from the core warehouse engine. The current quarter's 11.6% revenue growth suggests the base business still has room to absorb the experiment.
Food and pharmacy tie-in
Costco's core product mix still revolves around bulk groceries, household staples, fresh food, pharmacy, and member services, and that breadth is part of why the membership fee line remains so powerful. The new health plan angle fits that model because it ties a recurring consumer relationship to another recurring bill.
As of August 17, 2026, Costco stock was priced at $953.50 and the market cap stood at $422.86 billion.
Costco Wholesale Corporation
Company: Costco Wholesale Corporation
ISIN: US22160K1051
Ticker: COST
Exchange: Nasdaq
Price (as of August 17, 2026, 4:00 p.m. ET): $953.50 USD
Market cap: $422.86 billion (as of August 17, 2026)
Sector / Industry: Consumer Staples / Consumer Staples Distribution & Retail
Index membership: S&P 500
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