Cobalt-doped ZnO (Zn 1Ϫx Co x O) thin films were fabricated by reactive magnetron cosputtering. The processing conditions were carefully designed to avoid the occurrence of Co precipitations. The films are c-axis oriented, and the solubility limit of Co in ZnO is less than 17%, determined by x-ray diffraction. X-ray photoemission spectroscopy measurements show Co ions have a chemical valance of 2ϩ. In this paper, hysteresis loops were clearly observed for Zn 1Ϫx Co x O films at room temperature. The coercive field, as well as saturation magnetization per Co atom, decreases with increasing Co content, within the range of 0.07ϽxϽ0.17. Most intriguing, the Zn 1Ϫx Co x O films are nonconductive as x is no more than 17%. Our results clearly demonstrate that ferromagnetism can be realized in Zn 1Ϫx Co x O without carrier incorporation.