Costco makes progress on a key membership metric. Here's our new price target on the stock

Costco reported better-than-expected fourth-quarter results, but the figures weren’t enough to fully settle Wall Street’s debate over membership momentum and the retailer’s growth outlook. For the August quarter, total revenue rose 11.1% year over year to $95.72 billion, beating the $94.86 billion estimate. Adjusted EPS increased 15% to $6.75, also ahead of consensus, after excluding a 15-cent benefit from tariff refunds tied to a February Supreme Court ruling. Membership fee income grew 7.3% to $1.85 billion, slightly below expectations. While renewal rates improved sequentially, analysts said more evidence is needed, prompting a hold-equivalent 2 rating and a lower $1,050 price target.