Is Costco Wholesale Corporation (COST) halal? Not Halal. Based on AAOIFI screening, Costco Wholesale Corporation has involvement in prohibited business activities with a compliance score of 0/100 (Grade: F).

Costco Wholesale Corporation

COST: Is Costco Wholesale Corporation Halal?

Not Halal

Costco Wholesale Corporation

NASDAQConsumer DefensiveUS

$965.59

+0.30%

About Costco Wholesale Corporation

Costco Wholesale Corporation, alongside its group entities, operates membership-based retail warehouses across a broad international scope, spanning the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, South Korea, Australia, Spain, France, Iceland, China, and Taiwan. These outlets provide customers with an extensive array of both well-known branded and proprietary private-label products. Their vast inventory includes household staples, shelf-stable groceries, confectionery, chilled and frozen items, alcoholic beverages, tobacco, and deli selections. Furthermore, the stores stock major appliances, consumer electronics, health and beauty aids, hardware, garden and patio furniture, sporting goods, vehicle tires, toys, seasonal merchandise, office supplies, automotive maintenance products, postage services, event tickets, apparel, small kitchen appliances, home furnishings, domestic textiles, kitchenware, custom-order kiosks, and fine jewelry. Fresh departments offer meat, produce, a service deli, and bakery items. Beyond retail goods, Costco provides in-store amenities such as pharmacies, optical clinics, food courts, hearing aid centers, and tire installation facilities, in addition to managing 636 gas stations. The company also extends its offerings online through business delivery, travel booking, and same-day grocery fulfillment in various countries. As of August 29, 2021, Costco maintained a global network of 815 membership warehouses, with 564 located in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in South Korea, 14 in Taiwan, 12 in Australia, 3 in Spain, and one each in Iceland, France, and China. Digital storefronts facilitate e-commerce operations in the United States, Canada, the United Kingdom, Mexico, South Korea, Taiwan, Japan, and Australia. Founded in 1976, the enterprise was originally known as Costco Companies, Inc. before officially adopting the name Costco Wholesale Corporation in August 1999. Its corporate headquarters are situated in Issaquah, Washington.

Sector: Consumer Defensive 路 Industry: Discount Stores

Read Full Analysis

Is Costco (COST) Stock Halal? Shariah Compliance Analysis

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 16, 2026
F

Non-Compliant

Fails Shariah screening

0Score

Business Activity Screen

Failed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

  • Prohibited activity detected: tobacco

Financial Ratio Screen

Passed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap1.3% / 30.0%

Compliance History

  1. Not Halalnow

    since Jun 2026

  2. Halal

    until the change above

Tracked since Jun 2026. Updates automatically on each re-screen.

Screened: Jun 16, 2026Fiscal: Q3 2026Source: EDGAR

Financial Overview

Market Cap

428.2B

Price

$965.59

Sector

Consumer Defensive

Industry

Discount Stores

Halal Alternatives in Consumer Defensive

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

Free 路 No credit card required

Track COST and 10,000+ stocks with AI insights

Create your free account to unlock AI-powered compliance analysis, track your portfolio, calculate purification, and get unlimited AAOIFI screening.

10,000+ assets AAOIFI standards Free watchlist

Frequently Asked Questions

Is Costco Wholesale Corporation (COST) halal to invest in?
Costco Wholesale Corporation (COST) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Costco Wholesale Corporation get a F compliance rating?
Costco Wholesale Corporation (COST) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 1.3% (limit 30%); interest-bearing deposits of 3.5% (limit 30%); prohibited income of 0.07% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Costco Wholesale Corporation's Shariah verdict?
Costco Wholesale Corporation's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Costco Wholesale Corporation re-screened for Shariah compliance?
Costco Wholesale Corporation (COST) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 16, 2026.

Screened according to AAOIFI Standard No. 21 路 For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.