Starbucks (NASDAQ:SBUX) Posts Earnings Results, Beats Expectations By $0.19 EPS

Starbucks (NASDAQ:SBUX) announced its quarterly earnings results on Wednesday. The coffee company reported $0.85 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.66 by $0.19, FiscalAI reports. Starbucks had a net margin of 5.17% and a negative return on equity of 33.44%. The business had revenue of $9.32 billion during the quarter, compared to the consensus estimate of $9.17 billion. During the same quarter last year, the firm earned $0.50 EPS. The business’s revenue was down 1.4% compared to the same quarter last year. 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 Trading Down 0.8%

Starbucks stock traded down $0.86 during midday trading on Friday, reaching $104.99. 1,922,578 shares of the stock traded hands, compared to its average volume of 8,314,207. The company has a 50-day simple moving average of $102.19 and a two-hundred day simple moving average of $99.04. Starbucks has a 12-month low of $77.99 and a 12-month high of $109.23. The firm has a market cap of $119.66 billion, a PE ratio of 60.50, a price-to-earnings-growth ratio of 2.07 and a beta of 0.98.

Starbucks Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be paid a dividend of $0.62 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $2.48 annualized dividend and a yield of 2.4%. Starbucks’s dividend payout ratio is presently 142.53%.

Insider Transactions at Starbucks

In other news, CEO Brady Brewer sold 2,229 shares of the firm’s stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $104.00, for a total value of $231,816.00. Following the completion of the transaction, the chief executive officer owned 77,364 shares of the company’s stock, valued at approximately $8,045,856. This trade represents a 2.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed 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 have sold 6,687 shares of company stock worth $679,033 in the last 90 days. 0.03% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Starbucks

Large investors have recently added to or reduced their stakes in the business. Brighton Jones LLC raised its position in Starbucks by 86.5% in the 4th quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company’s stock valued at $16,126,000 after purchasing an additional 81,952 shares in the last quarter. Schnieders Capital Management LLC. increased its stake in shares of Starbucks by 47.0% during the second quarter. Schnieders Capital Management LLC. now owns 3,642 shares of the coffee company’s stock worth $334,000 after buying an additional 1,164 shares during the period. Flow Traders U.S. LLC purchased a new stake in shares of Starbucks during the second quarter worth approximately $288,000. Gamco Investors INC. ET AL raised its holdings in Starbucks by 92.8% in the second quarter. Gamco Investors INC. ET AL now owns 5,225 shares of the coffee company’s stock valued at $479,000 after acquiring an additional 2,515 shares in the last quarter. Finally, NewEdge Advisors LLC raised its holdings in Starbucks by 7.6% in the second quarter. NewEdge Advisors LLC now owns 112,710 shares of the coffee company’s stock valued at $10,328,000 after acquiring an additional 7,978 shares in the last quarter. 72.29% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities research analysts have commented on SBUX shares. Robert W. Baird set a $124.00 target price on Starbucks in a research report on Thursday. UBS Group increased their price target on Starbucks from $105.00 to $112.00 and gave the stock a “neutral” rating in a report on Thursday. BTIG Research reissued a “buy” rating and set a $115.00 price objective on shares of Starbucks in a research report on Friday. BNP Paribas Exane boosted their price objective on shares of Starbucks from $87.00 to $92.00 and gave the company an “underperform” rating in a report on Thursday. Finally, Stifel Nicolaus set a $117.00 target price on shares of Starbucks and gave the company a “buy” rating in a research report on Wednesday, May 6th. Nineteen equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, Starbucks currently has a consensus rating of “Moderate Buy” and an average price target of $112.04.

More Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Fiscal Q3 adjusted earnings were $0.85 per share, well above the $0.66 consensus estimate and up from $0.50 a year earlier. Revenue of $9.32 billion also exceeded expectations of approximately $9.17 billion. Starbucks beats quarterly sales estimates
• Positive Sentiment: Global comparable-store sales rose 7.9%, ahead of the 5.7% expected increase, driven primarily by a 4.2% increase in transactions. North American revenue rose 7% to about $7.4 billion, suggesting that improved service speed, store operations, products and the café experience are attracting more customers. Starbucks Reports Q3 Fiscal Year 2026 Results
• Positive Sentiment: Starbucks raised fiscal 2026 adjusted EPS guidance to $2.55–$2.65 from $2.25–$2.45 and expects full-year global comparable sales growth of about 6%. Margin expansion, store remodels and international licensing changes are supporting the improved outlook. Starbucks raised full-year profit guidance
• Positive Sentiment: Several analysts raised targets or reaffirmed bullish ratings: Wells Fargo raised its target to $125, while TD Cowen maintained a Buy rating and $120 target. BTIG also reaffirmed Buy with a $115 target. Analyst ratings and price targets

Starbucks Company Profile

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.