Costco plans about $7.5 billion in capital spending for fiscal 2027, up from $6.4 billion in fiscal 2026, and intends to open 33 warehouses. That spending equals about 41% of the $15.8 billion in cash generated from operations in fiscal 2026, while its 3.0% net margin compares with 13.4% for the S&P 500. Still, operating cash rose from $13.3 billion a year earlier and free cash flow reached $9.38 billion, up from $7.84 billion. The stock trades at 50.1 times trailing earnings versus 22.8 for the S&P 500, while Costco held $21.3 billion in cash and short-term investments against $8.58 billion of debt. The article views the concern as mild for now, though that could change if spending keeps climbing faster than cash generation, with fiscal Q1 2027 results expected in December 2026.
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