Starbucks (NASDAQ:SBUX) Releases Quarterly Earnings Results, Beats Expectations By $0.06 EPS

29 Apr 2026, 18:00 by Teresa Graham · The Cerbat Gem

Starbucks (NASDAQ:SBUX – Get Free Report) announced its quarterly earnings data on Tuesday. The coffee company reported $0.50 EPS for the quarter, topping the consensus estimate of $0.44 by $0.06, FiscalAI reports. The company had revenue of $9.53 billion during the quarter, compared to the consensus estimate of $9.09 billion. Starbucks had a net margin of 3.63% and a negative return on equity of 28.66%. The company’s quarterly revenue was up 8.8% on a year-over-year basis. During the same quarter last year, the firm posted $0.41 EPS. Starbucks updated its FY 2026 guidance to 2.250-2.450 EPS.

Here are the key takeaways from Starbucks’ conference call:

Q2 delivered a clear inflection — consolidated revenue of $9.5 billion (+8%), global comps +6.2%, EPS of $0.50 (+22%), and management raised FY26 guidance to global comps of 5%+ and EPS of $2.25–$2.45.
Operational turnaround is driving traffic and frequency — the Green Apron service, GROW Scorecard and store uplifts helped U.S. comps accelerate (>7%) with >4ppt transaction growth, Rewards 90‑day actives reached 35.6M, and U.S. delivery is up >30% YTD.
China transaction closed post‑quarter — Starbucks received approximately $3.1B in gross proceeds and will deconsolidate China retail into a JV that management expects to be margin‑accretive, but consolidated revenues and standalone China reporting will be reduced going forward.
Margin dynamics are mixed — consolidated operating margin improved to 9.4%, but much of international margin expansion reflected held‑for‑sale accounting (~$118M); North America margin contracted ~170bps amid Green Apron investments and ~190bps of product/distribution cost pressures (innovation mix, tariffs, higher coffee prices) that should moderate in H2.

Starbucks Trading Up 6.8%

Shares of SBUX traded up $6.65 during trading hours on Wednesday, reaching $103.93. The stock had a trading volume of 3,677,506 shares, compared to its average volume of 8,573,724. Starbucks has a 12 month low of $75.50 and a 12 month high of $104.82. The firm has a 50-day simple moving average of $96.15 and a 200 day simple moving average of $90.75. The company has a market capitalization of $118.40 billion, a price-to-earnings ratio of 85.89, a P/E/G ratio of 2.08 and a beta of 0.95.

Starbucks Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Friday, May 15th will be issued a $0.62 dividend. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Friday, May 15th. Starbucks’s dividend payout ratio (DPR) is currently 204.96%.

Insiders Place Their Bets

In other Starbucks news, CEO Brady Brewer sold 1,641 shares of Starbucks stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $97.12, for a total transaction of $159,373.92. Following the transaction, the chief executive officer directly owned 86,605 shares of the company’s stock, valued at $8,411,077.60. The trade was a 1.86% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Sara Kelly sold 2,500 shares of Starbucks stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $97.12, for a total transaction of $242,800.00. Following the transaction, the executive vice president directly owned 59,609 shares in the company, valued at $5,789,226.08. This represents a 4.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 6,958 shares of company stock worth $667,464. 0.03% of the stock is owned by company insiders.

Hedge Funds Weigh In On Starbucks

A number of hedge funds have recently bought and sold shares of SBUX. Corient Private Wealth LLC boosted its holdings in Starbucks by 146.6% during the 2nd quarter. Corient Private Wealth LLC now owns 6,049,192 shares of the coffee company’s stock worth $553,201,000 after acquiring an additional 3,596,014 shares during the last quarter. T. Rowe Price Investment Management Inc. boosted its holdings in Starbucks by 18.7% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 13,909,214 shares of the coffee company’s stock worth $1,171,295,000 after acquiring an additional 2,186,907 shares during the last quarter. Amundi boosted its holdings in Starbucks by 57.1% during the 4th quarter. Amundi now owns 4,532,627 shares of the coffee company’s stock worth $381,693,000 after acquiring an additional 1,647,292 shares during the last quarter. Renaissance Technologies LLC purchased a new position in Starbucks during the 4th quarter worth $112,158,000. Finally, California Public Employees Retirement System boosted its holdings in Starbucks by 39.2% during the 4th quarter. California Public Employees Retirement System now owns 3,356,091 shares of the coffee company’s stock worth $282,616,000 after acquiring an additional 944,679 shares during the last quarter. 72.29% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

Positive Sentiment: Q2 results beat expectations — revenue of ~$9.5B and EPS $0.50, U.S. comparable‑store sales up ~6.2%, and management raised FY26 EPS and comp guidance, signaling the turnaround is gaining traction. Starbucks tops quarterly sales estimates as CEO’s turnaround gains momentum
Positive Sentiment: Analysts bumped targets and reiterated buys after the print — Robert W. Baird to $117, BTIG to $115 and other firms lifting outlooks, providing fresh upside from current levels. Analysts raise price targets on Starbucks
Neutral Sentiment: CEO Brian Niccol and coverage emphasize that the “turn in the turnaround” is driven by service, store experience and product innovation — a multi‑year strategy that appears to be resonating with U.S. traffic. ‘A little touch of luxury, it goes a long way’: Starbucks CEO sees the turn in the turnaround as human touch sings
Neutral Sentiment: Product expansion (e.g., Energy Refreshers, more customizable, non‑coffee options) supports revenue diversification but is still early in contribution. Your morning coffee is becoming optional at Starbucks
Negative Sentiment: Management flagged higher gas and utility costs as a near‑term headwind; margins remain under scrutiny despite operating‑leverage improvements. Starbucks Reports Strong Store Traffic and Rise in Quarterly Sales
Negative Sentiment: Competitive pressure — fast‑food rivals (e.g., McDonald’s) are expanding beverage menus, which could limit pricing/promotion power over time. McDonald’s takes aim at Starbucks with new drinks menu
Negative Sentiment: Valuation and fundamentals still give some investors pause — SBUX trades at a high P/E and shows a low net margin / negative ROE on GAAP metrics, so upside is being weighed against execution risk. Starbucks press release and financials

Analyst Upgrades and Downgrades

Several analysts have recently commented on SBUX shares. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $110.00 price objective (up from $105.00) on shares of Starbucks in a research report on Wednesday. Dbs Bank raised shares of Starbucks from a “strong sell” rating to a “moderate sell” rating in a research report on Friday, March 20th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $113.00 price objective on shares of Starbucks in a research report on Thursday, January 29th. Stifel Nicolaus raised their price objective on shares of Starbucks from $105.00 to $115.00 and gave the stock a “buy” rating in a research report on Tuesday, April 21st. Finally, BNP Paribas Exane raised shares of Starbucks to a “strong sell” rating in a research report on Monday, March 30th. Sixteen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $107.39.

Check Out Our Latest Analysis on SBUX

Starbucks Company Profile

(Get Free Report)

Starbucks Corporation is a global coffeehouse chain and roaster that operates, licenses and franchises coffee shops and related retail businesses. Founded in Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker, the company grew from a single store focused on whole-bean coffee and equipment into a broad consumer-facing brand. Howard Schultz, who joined the company later and served in senior leadership roles, is widely credited with transforming Starbucks into a mass-market specialty coffee retailer and expanding its footprint internationally.

Starbucks’ core activities center on the retail sale of hot and cold specialty beverages, whole-bean and packaged coffees, teas and ready-to-drink products, along with complementary food items and merchandise such as mugs and brewing equipment.