Costco Executive Memberships Grow 9.4%, Outpacing Member Growth
Sep 25, 2026Costco’s higher-priced membership tier is growing more than twice as fast as its overall member base, giving the company another source of membership revenue beyond price increases.
Costco ended fiscal 2026 with 42.3 million paid Executive memberships, up 9.4% from a year ago.
That’s much faster than the growth of Costco’s overall paid membership base, which increased 3.8% to 84.1 million. Costco says Executive membership penetration is now at an all-time high.
The difference between the tiers is straightforward. A standard Gold Star membership costs $65 a year. Executive costs $130.
For the extra $65, Executive members receive a 2% annual reward on qualifying purchases, up to $1,250, plus other benefits. Costco expanded the package in 2025 with early warehouse shopping hours and a $10 monthly credit on qualifying same-day delivery orders.
Executive memberships now represent roughly half of Costco’s paid membership base, but those members accounted for 75.6% of fourth-quarter sales. Costco says Executive members generally spend more and renew at higher rates than Gold Star members.
Membership Revenue Is Still Growing
Costco collected $1.849 billion in membership fees during the fourth quarter, up 7.3% from a year ago.
This time, the increase wasn’t primarily coming from higher membership prices. Costco raised its fees in September 2024, but that increase contributed less than 1% of fourth-quarter membership fee growth. After removing the effects of the price increase and currency changes, membership fee income still grew 6.8%.
Costco pointed to two drivers: more paid members and more of them choosing Executive membership.
Renewal rates edged higher as well. U.S. and Canadian renewal reached 92.3%, while worldwide renewal reached 89.8%. Both increased 10 basis points from the previous quarter.
Costco continues to work on targeted digital communications and retention. Management also expects the growing Executive member base to help renewal rates over time because Executive members tend to renew at higher rates.
Giving Members More Reasons to Upgrade
Costco has been putting more value behind the higher-priced membership.
In June 2025, Executive members gained early warehouse shopping hours and a $10 monthly credit on qualifying same-day Costco or Instacart orders. Those joined the existing 2% reward and other Executive benefits.
CEO Ron Vachris said the newer benefits continue to resonate with members. Executive penetration has reached record levels among both new signups and existing Costco members.
Insider Take
Costco’s membership growth tells a useful story about premium tiers. The company added members, but its Executive tier grew much faster. And with most of the impact from its 2024 fee increase now behind it, membership fee revenue is still climbing.
For subscription and membership operators, that’s the interesting part. More customers are choosing the $130 membership, while Costco continues adding benefits intended to make the higher fee worthwhile.
About half of Costco’s paid memberships are now Executive, and those members account for more than three-quarters of sales. That makes tier mix an important part of the membership economics, not simply a pricing detail.
Related Member Resources
Costco’s results show how much tier mix can change the economics of a membership business. These resources help operators think through how a paid membership fits into the larger business and how to judge the quality of growth inside the member base.
- Adding a Paid Membership: When It Changes the Business Model
This strategy guide helps operators examine where paid membership fits in the larger business and what changes when recurring membership revenue becomes part of the model. Costco is a useful example because its Executive tier now plays a meaningful role in membership fee growth and customer spending.
- Subscription Growth Quality Framework: Beyond Subscriber Adds (Includes Scorecard)
The framework and scorecard help teams look past the total subscriber or member count and examine what is happening underneath it. For Costco, that means seeing the difference between 3.8% overall membership growth and 9.4% growth in the higher-priced Executive tier, along with the revenue, spending and renewal signals around that mix.
Sources
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Costco Wholesale Corporation, Q4 FY2026 Earnings Presentation, September 24, 2026
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Costco Wholesale Q4 2026 Earnings Call transcript, September 24, 2026
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