Companies /Consumer Cyclical

Starbucks Corp

NASDAQ: SBUX Restaurants
$107.90
â–² $0.64 (+0.59%) today
Markets open · 10:21am ET

Q1 2026 Earnings

Reported Jan 28, 2026, 7:46am ET · SEC source
$0.56
Miss −4.58%
EPS · est. $0.59
$9.9B
Beat +2.68%
Revenue · est. $9.7B
+3.0%
Beating market
SBUX vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0+4%Jan 28Jan 29report 7:46am ETearnings−0.9%−7.6%
−8%−4%0+4%Jan 28Jan 29earnings−0.9%−7.6%
SBUX −7.6%S&P 500 −0.9%
−8%−4%0+4%Jan 28Jan 29report 7:46am ETearnings−1.6%−7.6%
−8%−4%0+4%Jan 28Jan 29earnings−1.6%−7.6%
SBUX −7.6%NASDAQ −1.6%
−12%−8%−4%0Jan 27Feb 5report 7:46am ETearnings−2.3%−7.6%
−12%−8%−4%0Jan 27Feb 5earnings−2.3%−7.6%
SBUX −7.6%S&P 500 −2.3%
−12%−8%−4%0Jan 27Feb 5report 7:46am ETearnings−5.7%−7.6%
−12%−8%−4%0Jan 27Feb 5earnings−5.7%−7.6%
SBUX −7.6%NASDAQ −5.7%
−0.59%
Day of report
−1.35%
Next session
+1.90%
One week
+1.68%
30 days

S&P 500 over the same 30 days: −1.30%.

Did SBUX Beat Earnings? Q1 2026 Results

Starbucks posted a mixed first quarter for fiscal 2026, delivering a revenue beat alongside a modest earnings miss as the company's turnaround under CEO Brian Niccol showed early but costly signs of traction. Non-GAAP EPS came in at $0.56, falling short of the $0.59 consensus by 4.58%, while revenue of $9.92 billion exceeded estimates by 2.68% and grew 5.5% year over year. The headline earnings shortfall reflected deliberate margin pressure, with GAAP operating margin contracting 290 basis points to 9.0% as labor investments tied to the "Back to Starbucks" strategy collided with elevated coffee costs and tariff headwinds. The more significant story, however, was the operational inflection: global comparable store sales grew 4%, including the first positive U.S. comparable transaction growth in eight quarters, a milestone Niccol called ahead of schedule. Wolfe Research recently upgraded the stock to outperform with a $112 price target, reflecting growing confidence in the recovery. Looking ahead, Starbucks guided for non-GAAP EPS of $2.15 to $2.40 in fiscal 2026, with global comparable store sales growth of 3% or greater.

Key Takeaways
  • Global comparable store sales increased 4%, driven by 3% transaction growth and 1% average ticket increase
  • U.S. comparable transaction growth turned positive for the first time in eight quarters
  • China comparable store sales increased 7%, driven by 5% transaction growth
  • Channel Development revenue surged 20% driven by Global Coffee Alliance and ready-to-drink business
  • 'Back to Starbucks' strategy gaining traction ahead of schedule

“Our Q1 results demonstrate our 'Back to Starbucks' strategy is working and we believe we're ahead of schedule.”

Starbucks CEO, on the earnings call

Forward Guidance & Outlook

Starbucks introduced FY2026 guidance targeting global and U.S. comparable store sales growth of 3% or greater, with consolidated net revenues growing at a similar rate. Non-GAAP consolidated operating margin is expected to slightly improve year-over-year. Non-GAAP EPS is guided in the range of $2.15 to $2.40, with GAAP EPS projected at $1.74 to $1.99. The company plans approximately 600 to 650 net new coffeehouses globally. Guidance assumes China retail operations remain company-operated in the second half of the fiscal year. The Boyu Capital joint venture for China operations is expected to close in Spring 2026, subject to regulatory approvals.

SBUX YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$3.0B$6.0B$9.0B$9.4B$9.9BRevenue$1.1B$890.8MOperating Income$780.9M$293.3MNet Income
$0$3.0B$6.0B$9.0BRevenueOperating IncomeNet Income

SBUX Revenue by Segment

Company-Operated Stores$8.2B+5.2%
Licensed Stores$1.1B−0.5%
Channel Development$522.7M+19.8%

SBUX Revenue by Geography

North America$7.3B+2.9%
United States$6.8B+3.0%
International
China$823.4M+11.0%

Figures from SEC filings and company reports. Not investment advice.