BJ’s Wholesale Club reported fiscal second-quarter earnings that exceeded expectations, driven by membership growth and digital sales gains, while raising its full-year guidance.
The company posted adjusted earnings per share of $1.36 for the quarter ended August 21, 2026, surpassing the $1.17 consensus estimate by 16.2%. Revenue totaled $6.09 billion, beating estimates by $120 million. Operating income rose 16.5% to $252.4 million, while adjusted EBITDA climbed 14.3% to $347.2 million. Shares rose 4.7% to $95.59 in after-hours trading.
Membership metrics strengthened, with fee income reaching a record $135.6 million, up 9.9% year-over-year. The company’s member base expanded to 8.5 million, and higher-tier penetration increased to 42%, an all-time high. Tenured member renewal rates remained robust at 90%.
Digital sales momentum continued, with comparable digital sales up 30% in the quarter. Digital sales now account for 16% of merchandise revenue, up from just 2% in fiscal 2018. Fuel volumes also increased 7.8% during the period.
Management raised its full-year EPS guidance to a range of $4.60 to $4.80, above the prior consensus of $4.55. The company also plans to open 25 to 30 new clubs over fiscal 2027–2028, including seven additional locations in fiscal 2026. Newer clubs, particularly those opened in Texas, are among the strongest performers, with comparable sales growth exceeding 6% for locations opened within the last five years.
Gross margin on merchandise declined 10 basis points year-over-year, or 60 basis points excluding tariff refunds, reflecting strategic price investments. Analysts noted the company’s valuation remains below peers, with BJ trading at 21.4x trailing earnings and 19.9x forward earnings, roughly half of Costco’s forward multiple of about 40x.
Near-term expectations for the third quarter call for EPS of $1.23 on revenue of $5.89 billion. The company’s Fresh 2.0 initiative, led by new Chief Merchandising Officer Stephanie Reibling, is expected to further support growth.
As of market close, BJ’s market capitalization stood at $11.66 billion. Analyst price targets include $110 from TD Cowen and $109 from UBS, though 14 of 16 analysts had revised earnings estimates downward in the 90 days prior to the report.
