COST · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

COSTCO WHOLESALE CORP /NEW · 2026-06-03 · Importance 25 · Surprise 32 · No source text

The effective tax rate was 25.4% for the quarter compared to 26.2% in the prior-year quarter, and was 24.4% year-to-date versus 24.9% in the prior-year period. The effective tax rate change benefited from discrete tax benefits of $72 and $100 related to stock compensation in the first thirty-six weeks of 2026 and 2025, respectively. The lower quarter-over-quarter effective tax rate contributed to net income increasing to $2,192 ($4.93 per diluted share) versus $1,903 ($4.28 per diluted share) in the prior-year quarter. The tax-rate movements are presented as part of reported provision for income taxes of $2,014 year-to-date.

Key facts

• Provision for income taxes for the 36 weeks ended May 10, 2026 was $2,014 versus $1,819 in the prior-year period. source
• The effective tax rate for the first thirty-six weeks of 2026 was favorably impacted by discrete tax benefits of $72 related to stock compensation. source
• Effective tax rate for the third quarter of 2026 was 25.4% compared to 26.2% in the prior-year quarter. source

Impact estimates