Starbucks Corp
Q3 2026 Earnings
Market Reaction
Did SBUX Beat Earnings? Q3 2026 Results
Starbucks delivered a strong fiscal third quarter, posting non-GAAP EPS of $0.85 against a consensus estimate of $0.65, a beat of 30.79%, while revenue of $9.32 billion edged past the $9.12 billion estimate by 2.22%, even as consolidated net revenues slipped 1.4% year-over-year. The headline revenue decline was almost entirely structural, reflecting the completed divestiture of Starbucks' China retail operations to a joint venture with Boyu Capital in April 2026, which converted roughly 7,991 company-operated stores to a licensed model and pulled International segment revenues down 34%. Beneath that shift, the underlying business showed genuine momentum, with global comparable store sales rising 7.9% on stronger transaction volumes and higher average ticket, while North America segment revenues grew 7% to $7.40 billion. Non-GAAP operating margin expanded 430 basis points to 14.4%, aided in part by IEEPA tariff refunds received during the quarter. Encouraged by the results, management raised its full-year non-GAAP EPS guidance to $2.55 to $2.65, with analysts broadly maintaining a constructive view on the stock's trajectory heading into fiscal year-end.
- Global comparable store sales increased 7.9%, driven by 4.2% transaction growth and 3.5% average ticket increase
- North America comparable store sales increased 8.1% with 4.5% transaction growth
- Higher delivery sales and strength in customer food attach and beverage modifications
- IEEPA tariff refunds largely offset tariffs incurred in the first three quarters of FY2026
- Sales leverage and lower inflation paired with tariff refunds drove margin expansion
- Channel Development revenue up 22% driven by Global Coffee Alliance growth
- China divestiture to licensed JV model expanded International operating margin by 550 basis points
“Our Back to Starbucks plan was built on the belief that an extraordinary cup of coffee, human connection and customer experience win the day, every day. Our third quarter results are proof they do.”
Starbucks CEO, on the earnings call
Forward Guidance & Outlook
Starbucks raised its FY2026 guidance: Q4 U.S. comparable store sales growth of 6.5% or greater, leading to full-year U.S. comps slightly greater than 6.0% and global comps nearing 6.0%. Consolidated net revenues expected flat to slight growth year-over-year. Non-GAAP consolidated operating margin greater than 11.0%. Non-GAAP EPS guided to $2.55–$2.65. Approximately 600–650 net new coffeehouses globally. Guidance reflects China retail operations as a joint venture licensee structure in the second half of FY2026.
SBUX YoY Financials
SBUX Revenue by Segment
SBUX Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.