Costco, Autodesk, MongoDB, Okta, Clorox, Gap, SentinelOne, Elastic
Costco's COST fiscal third-quarter results featured an 11.6% increase in revenue and diluted EPS of $4.93, up 15.3%. Comparable-store sales (excluding
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Stock Analyst NotesMay 29, 2026
Costco's COST fiscal third-quarter results featured an 11.6% increase in revenue and diluted EPS of $4.93, up 15.3%. Comparable-store sales (excluding fuel) rose 6.6% and membership fee income grew 10.7%, but gross margin fell 21 basis points to 12.8% as fuel sales and discounts squeezed profits. Global traffic rose 2.4%, but core merchandise gross margin fell 9 basis points from price cuts on beef and eggs. Digital-enabled comparable sales rose 21.5%, driven by personalized product recommendations that secured $500 million in online sales and tripled standard conversion rates.
Autodesk ADSK reported strong fiscal 2027 first-quarter results. Total revenue grew 18% year over year to $1.93 billion, with all product families recording revenue growth in the teens or higher. Sales optimization and operating leverage drove a 200-basis-point improvement in non-GAAP operating margin. Macroeconomic uncertainty did not seem to hurt the company's growth momentum, as Europe/Middle East/Africa, Asia-Pacific, and the Americas all saw healthy revenue growth of 21%, 17%, and 16%, respectively.
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MongoDB MDB reported solid fiscal 2027 first-quarter results, with year-over-year revenue growth of 25% beating the high end of guidance. Gross margin of 72% improved 100 basis points year over year, despite the lower-margin MongoDB Atlas expanding faster than expected at 29%. MongoDB onboarding Frontier AI Labs and AI Natives is a positive sign of the product's potential to capture AI workloads, which should drive further growth of remaining performance obligation beyond the current level of $1.46 billion.
Okta OKTA reported a solid start to fiscal 2027, with sales growing 11% to $765 million and adjusted EPS growing 6% to $0.91. Management marginally upped its sales and profitability outlook for the year to 9.5% and 25.5%, respectively, from 9% and 25.3% previously. Based on management's commentary, Okta is seeing traction on agentic identity deals. We don't expect these deals to be material enough to drive the firm's top line in the near term as agentic deployments are still in their nascent stages.
On May 28, Clorox CLX CEO Linda Rendle announced her decision to step down for health reasons. The firm has begun a search for a replacement, but she intends to stay on in the interim and will continue to serve in an advisory capacity even after a successor is named. This news does not alter our outlook for Clorox. The company has faced a slew of challenges during Rendle's six years at the helm, including postpandemic volume fatigue, rampant cost inflation, and a cybersecurity breach. Throughout it all, Clorox has remained committed to spending behind its brands and capabilities.
With comparable sales growth of 1% at Old Navy and 10% at its namesake, Gap GAP reported 2% comparable sales growth for the first quarter. Gross and adjusted operating margins declined 130 and 230 basis points, respectively, to 40.5% and 5.2% on tariffs and planned investments. Gap attributed Old Navy's weakness to slow sales of women's apparel, including dresses. That said, Old Navy's sales were only 1% below our forecast, and the impact on profitability was negligible.
SentinelOne S reported first-quarter results that included sales growth of 21% to $277 million and adjusted operating margin expanding 550 points to 4%. Annual recurring revenue grew 23%, decelerating from 24% a year ago. We view Sentinel's efforts to become a multisolution platform vendor as being hampered by stronger, more entrenched competitors like CrowdStrike expanding into the same verticals, such as cloud, data, and security operations.
Elastic’s ESTC fiscal fourth-quarter results slightly exceeded management’s expectations across key metrics, but guidance for 2027 implies revenue growth slowing to roughly 14.6%, below its high-teens trend. Total remaining performance obligation growth accelerated to 28% year over year, a solid number on the surface, but less impressive when compared with Datadog’s 51% growth. Similar differentials exist in customer retention.
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