TD Cowen’s COST HQ Visit & CFO Meeting: Evolving Model, Membership Durability

Research evidence excerpt

TD Cowen’s COST HQ Visit & CFO Meeting: Evolving Model, Membership Durability

Retailing/Broadlines & Department Stores: Broadlines

Costco Wholesale

TD SECURITIES (USA) LLC COMPANY UPDATE

May 12, 2026

Price: $999.47 (05/11/2026) TD Cowen’s COST HQ Visit & CFO Meeting:

Price Target: $1,175.00 Evolving Model, Membership Durability

BUY (1)

ESG SCORE: 55/100

Oliver Chen, CFA THE TD COWEN INSIGHT

646 562 1424

New CEO, Deeper Engagement, Same Focus On Value. Costco's biggest risk is being

oliver.chen@tdsecurities.com

complacent, they are not standing still. Our meeting highlighted new store formats, checkout

Gabriella Garr innovation, personalization efforts, and A.I.'s power. Meanwhile, investor debates center

646 562 1356 around timing- and mix-factors including gas volatility, renewals rates, and cost leverage.

gabriella.garr@tdsecurities.com

Jonna Kim, CFA We hosted Gary Millerchip, Executive Vice President and CFO, Josh Dahmen, VP, Financial

646 562 1419 Planning & Investor Relations; Andrew Yoon, Director, Financial Planning & Investor Relations for

jonna.kim@tdsecurities.com a meeting at Costco's HQ and a warehouse tour.

Julia Shelanski We will also host COST at our Future of the Consumer Conference on June 2-3.

646 562 1459

julia.shelanski@tdsecurities.com We were most impressed by management’s willingness to experiment and innovate across the

business, while remaining disciplined and anchored to Costco’s value-first operating model.

Key Data

Management highlighted creative real estate solutions, innovations in checkout, deeper

Symbol NASDAQ: COST

personalization, and A.I.-driven efficiency.

Beta: 0.91

52-Week Range: $1,056.85-$850.00 Key Investor Debates & Related Takeaways

Market Cap: $443.4B

Is Membership Fee Income Still A Durable Growth Engine?