Starbucks (NASDAQ:SBUX) Announces Quarterly Earnings Results, Beats Expectations By $0.20 EPS

by · The Markets Daily

Starbucks (NASDAQ:SBUX – Get Free Report) posted its quarterly earnings results on Wednesday. The coffee company reported $0.85 EPS for the quarter, beating analysts’ consensus estimates of $0.65 by $0.20, FiscalAI reports. Starbucks had a net margin of 3.89% and a negative return on equity of 29.24%. The firm had revenue of $9.32 billion for the quarter, compared to analysts’ expectations of $9.17 billion. Starbucks updated its FY 2026 guidance to 2.550-2.650 EPS.

Here are the key takeaways from Starbucks’ conference call:

  • Strong sales momentum continued: Global comparable sales rose 7.9% in Q3, with U.S. comps up 7.9% on balanced transaction and ticket growth. Starbucks expects U.S. Q4 comps of at least 6.5% and is raising full-year global comp guidance to nearly 6%.
  • Profitability improved significantly: Consolidated operating margin expanded 430 basis points to 14.4%, while EPS increased 70% to $0.85. The company raised full-year margin guidance to above 11% and EPS guidance to $2.55–$2.65, supported by sales leverage, cost savings, and easing coffee costs.
  • Back to Starbucks initiatives are gaining traction: Green Apron Service, better staffing and supply-chain execution, and coffeehouse uplifts are improving service consistency and food availability. Starbucks surpassed 1,000 North American uplifts ahead of schedule and plans at least 1,500 by the end of fiscal 2026, while Rewards membership reached 35.8 million active U.S. members.
  • Portfolio and international strategy are shifting: The China retail transition to a 40%-owned joint venture reduced reported revenue but creates a more capital-light model, with Starbucks targeting up to 20,000 China stores over time. North American net new company-operated growth may remain modest through fiscal 2027 as the company evaluates closures of underperforming locations and redirects resources toward remodels and international expansion.

Starbucks Price Performance

Shares of SBUX traded up $1.04 during midday trading on Wednesday, hitting $104.14. The stock had a trading volume of 12,439,453 shares, compared to its average volume of 8,255,398. The firm has a market cap of $118.69 billion, a PE ratio of 78.89, a price-to-earnings-growth ratio of 2.06 and a beta of 0.98. Starbucks has a 1 year low of $77.99 and a 1 year high of $109.23. The stock’s 50 day moving average is $102.15 and its 200 day moving average is $98.92.

Starbucks Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be paid a $0.62 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $2.48 annualized dividend and a dividend yield of 2.4%. Starbucks’s dividend payout ratio is currently 187.88%.

Trending Headlines about Starbucks

Here are the key news stories impacting Starbucks this week:

  • Positive Sentiment: Global comparable-store sales rose 7.9%, driven primarily by a 4.2% increase in comparable transactions, indicating stronger customer traffic as well as improved spending per visit. Starbucks Reports Q3 Fiscal Year 2026 Results
  • Positive Sentiment: Adjusted earnings reached $0.85 per share, exceeding consensus estimates near $0.65-$0.66, while revenue of approximately $9.32 billion also topped forecasts. Reported GAAP EPS was $0.91, up sharply from the prior year. Starbucks Q3 Earnings Surpass Estimates
  • Positive Sentiment: Starbucks raised fiscal 2026 adjusted EPS guidance to $2.55-$2.65 from $2.25-$2.45 and set a 6% global comparable-sales growth target. The outlook is above the roughly $2.39 analyst consensus. Starbucks Raises Its Full-Year Guidance
  • Positive Sentiment: North American revenue increased 7% to $7.4 billion, while international margins improved, reinforcing expectations that operational improvements can support earnings growth. Starbucks Q3 Comparable Sales Rise 7.9%

Analysts Set New Price Targets

A number of brokerages have recently commented on SBUX. BTIG Research lowered shares of Starbucks from a “buy” rating to a “neutral” rating in a research note on Thursday, May 14th. Jefferies Financial Group began coverage on Starbucks in a research note on Thursday, May 14th. They issued a “buy” rating for the company. Piper Sandler reiterated an “overweight” rating and set a $110.00 target price on shares of Starbucks in a research report on Wednesday, April 29th. Scotiabank cut shares of Starbucks from a “market perform” rating to an “underperform” rating in a research report on Thursday, May 14th. Finally, Stifel Nicolaus set a $117.00 price objective on Starbucks and gave the company a “buy” rating in a research report on Wednesday, May 6th. Nineteen analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $109.42.

Check Out Our Latest Analysis on SBUX

Insider Buying and Selling at Starbucks

In other news, CEO Brady Brewer sold 2,229 shares of the stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $104.00, for a total value of $231,816.00. Following the sale, the chief executive officer directly owned 77,364 shares in the company, valued at approximately $8,045,856. This represents a 2.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 6,687 shares of company stock valued at $679,033 in the last quarter. Corporate insiders own 0.03% of the company’s stock.

Institutional Investors Weigh In On Starbucks

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Stansberry Asset Management LLC grew its stake in Starbucks by 0.5% in the fourth quarter. Stansberry Asset Management LLC now owns 27,234 shares of the coffee company’s stock valued at $2,293,000 after purchasing an additional 147 shares during the last quarter. 44 Wealth Management LLC grew its stake in Starbucks by 5.4% during the 2nd quarter. 44 Wealth Management LLC now owns 3,675 shares of the coffee company’s stock valued at $337,000 after purchasing an additional 188 shares during the last quarter. Rakuten Securities Inc. boosted its holdings in Starbucks by 55.1% in the second quarter. Rakuten Securities Inc. now owns 549 shares of the coffee company’s stock valued at $50,000 after purchasing an additional 195 shares during the last quarter. FSB Premier Wealth Management Inc. raised its position in Starbucks by 2.3% during the second quarter. FSB Premier Wealth Management Inc. now owns 8,999 shares of the coffee company’s stock valued at $825,000 after acquiring an additional 205 shares in the last quarter. Finally, WCG Wealth Advisors LLC lifted its holdings in Starbucks by 0.7% in the third quarter. WCG Wealth Advisors LLC now owns 33,122 shares of the coffee company’s stock valued at $2,802,000 after acquiring an additional 215 shares during the period. Institutional investors own 72.29% of the company’s stock.

About Starbucks

(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.

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