Breaking: COSTCO Shares Dip 2% In Premarket Amidst Earnings Miss

Costco Wholesale Corporation (NASDAQ: COST), together with its subsidiaries, engages in the operation of membership warehouses in the United States, reported fiscal second-quarter sales that topped analysts’ estimates, but earnings missed as costs rose.

The membership-based retailer saw revenue rise 9% year-over-year to $63.72 billion, above the analyst consensus from Visible Alpha. However, Costco's net income of $1.79 billion, or $4.02 per share, missed expectations, despite rising from a year earlier. The results came as merchandise costs rose 9%.

The period marked the company’s second quarter since its membership fee hike went into effect in September. Revenue from membership fees rose 7% year-over-year to $1.19 billion, though executives previously said they expect the impact on margins to be weighted to the back half of the fiscal year and into fiscal 2026.

Technical Outlook
Shares of Costco slid 1.5% in after-hours trading Thursday following the release extending the lost to premarket trading hours, with the asset down 2.02% in Friday's premarket session.

For Costco shares, the immediate support lies within the 1-month low axis. Should Costco shares face selling pressure the 1-month low should serve as a point of reprieve for Costco shares. With the RSI at 50 a breakout above the 1-month high should spark a bullish reversal for Costco shares respectively.