Compliance Status
Doubtful
Screened on Oct 19, 2026 · AAOIFI Standard 21
Good
Is Costco Wholesale Corporation (COST) halal? Doubtful. Based on AAOIFI screening, Costco Wholesale Corporation passes the business activity screen but has financial ratios approaching AAOIFI limits with a compliance score of 79/100 (Grade: B+).
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HalalScreener rates Costco Wholesale Corporation (COST) Doubtful, 79/100, grade B+ under AAOIFI Standard 21, screened Oct 19, 2026. Source: https://halalscreener.app/en/stock/COST
Business activity
Its main business is permissible, with some incidental non-compliant revenue.
Company debt
Well clear of the limitHow much the company borrows, compared to its total value. AAOIFI allows up to 30%.
The verdict above is final and free.
Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.
Screened according to AAOIFI Standard 21
What this means for you
You may own COST, with caution
Its numbers sit close to AAOIFI limits. Cautious investors may prefer alternatives or ask a scholar first.
Purification amount is Pro
We have screened COST's prohibited income, but the exact share you would need to purify is part of Pro.
COST: Is Costco Wholesale Corporation Halal?
Costco Wholesale Corporation
$989.11
+1.13%
Market Cap: 438.3B
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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 · Industry: Discount Stores
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Is Costco (COST) Stock Halal? Shariah Compliance Analysis
Why This Stock Is Doubtful
- Business activity: the company's own filing confirms revenue from an activity AAOIFI treats as prohibited but does not disclose its share, so it cannot be shown to be under the 5% limit.
Stocks are marked Doubtful when financial ratios pass but approach AAOIFI thresholds. Consider consulting a qualified scholar for a definitive ruling.
Shariah Compliance Status
See which ratio caused the failure.
See the exact debt ratio, interest income %, and prohibited revenue that caused the failure. Know before you sell or hold.
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PROInstitutional-grade Shariah analysis
See why COST is rated Doubtful with institutional-grade analysis
Business Activity Screen
Share not disclosedChecks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)
The company's own filing names this revenue but does not say how large it is, so it cannot be shown to be under the AAOIFI 5% limit. The verdict stays Doubtful until the company discloses a figure. The percentage shown is an estimate for purification only.
- •Liquor and tobacco are among its merchandise; their share of revenue is not disclosed
Use the Purification Calculator to compute exactly how much of your dividend income to donate.
Source: the company's Form 10-K for the fiscal year ended 2025-08-31, which names this revenue without a figure. View its filings on SEC EDGAR
The verdict above is final and free.
Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.
Screened according to AAOIFI Standard 21
Compliance History
Doubtfulnow
since Sep 2026
Not Halal
until the change above
Halal
until the change above
Tracked since Jun 2026. Updates automatically on each re-screen.
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Frequently Asked Questions
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Screened according to AAOIFI Standard No. 21 · 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.