Why Should Costco Stock Holders Watch This Number?

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Costco Wholesale (COST) is allocating more money each year to capital projects, the investments it makes in buildings and equipment. During its September 24, 2026 call, management said this spending belongs to a three-year stretch of outsized growth that began in fiscal 2025. This pace matters for a retailer that retains a thin slice of each sale as profit. So how much more is Costco planning to spend in fiscal 2027?

Costco Plans To Spend 17% More In Fiscal 2027

Costco plans about $7.5 billion in capital spending for fiscal 2027, compared with $6.4 billion in fiscal 2026.

Executives detailed the company’s building plan for the year on the same call. Management intends to open 33 warehouses in fiscal 2027, including five relocations, as it advances a goal to add 30 net new warehouses a year. At the time of the call, management said Costco operated 939 warehouses worldwide.

How Much Of Costco’s Cash Goes Into Building?

Capital spending consumed about 41% of the $15.8 billion in cash Costco generated from operations in fiscal 2026. That share remains worth watching at a retailer with Costco’s margins. Over fiscal 2026, Costco recorded a 3.0% net margin, compared with 13.4% for the S&P 500.

The company’s cash generation has kept up, however. Cash from operations rose from $13.3 billion a year earlier, so Costco produced more cash even as it spent more on building.

What Does Costco’s Share Price Assume About This Spending?

Costco stock trades at 50.1 times its earnings over the last twelve months, compared with 22.8 for the S&P 500. At that price, buyers likely assume the new warehouses will continue adding sales and profit for years.

The company’s own cash provides the best evidence that Costco can afford this spending. Free cash flow, the cash remaining after capital spending, rose to $9.38 billion in fiscal 2026 from $7.84 billion a year earlier. Furthermore, Costco held $21.3 billion in cash and short-term investments at the end of fiscal 2026, against $8.58 billion of debt. Management also said it expects growth in capital spending to slow after fiscal 2027.

This makes the worry a mild one for now: Costco is spending more, but its operations also bring in more cash than the company spends. That dynamic would change if spending keeps climbing faster than the cash Costco produces. Costco is expected to report its fiscal Q1 2027 results in December 2026. At that point, capital spending for the quarter, measured against the roughly $7.5 billion planned for the year, is the figure to watch.

How Much Costco Wholesale Do You Already Own?

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