Starbucks (NASDAQ:SBUX) Posts Earnings Results, Beats Estimates By $0.20 EPS

Starbucks (NASDAQ:SBUX) released its quarterly earnings results on Wednesday. The coffee company reported $0.85 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.65 by $0.20, FiscalAI reports. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The business had revenue of $9.32 billion during the quarter, compared to the consensus estimate of $9.17 billion. During the same quarter in the previous year, the company posted $0.50 EPS. The business’s revenue was down 1.4% on a year-over-year basis. 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 Stock Performance

Shares of SBUX traded up $1.04 during trading hours 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 company’s fifty day simple moving average is $102.15 and its 200 day simple moving average is $98.92. The firm has a market cap of $118.69 billion, a P/E ratio of 78.89, a P/E/G ratio of 2.06 and a beta of 0.98. Starbucks has a 12-month low of $77.99 and a 12-month high of $109.23.

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 given a $0.62 dividend. This represents a $2.48 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, August 14th. Starbucks’s dividend payout ratio (DPR) is 187.88%.

Analyst Upgrades and Downgrades

SBUX has been the subject of several recent research reports. The Goldman Sachs Group downgraded shares of Starbucks from a “neutral” rating to a “neutral” rating in a report on Thursday, May 14th. UBS Group downgraded shares of Starbucks from a “neutral” rating to a “neutral” rating in a report on Thursday, May 14th. BNP Paribas Exane initiated coverage on shares of Starbucks in a research report on Thursday, May 14th. They issued an “underperform” rating on the stock. Evercore raised their price objective on shares of Starbucks from $110.00 to $115.00 and gave the stock an “outperform” rating in a research note on Wednesday, April 29th. Finally, Morgan Stanley restated an “overweight” rating and set a $111.00 price objective (up from $110.00) on shares of Starbucks in a research report on Wednesday, July 15th. Nineteen analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Starbucks currently has an average rating of “Moderate Buy” and an average price target of $109.42.

Insider Buying and Selling

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of Starbucks stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $104.00, for a total transaction of $231,816.00. Following the transaction, the chief executive officer directly owned 77,364 shares of the company’s stock, valued at $8,045,856. The trade was a 2.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 6,687 shares of company stock valued at $679,033 in the last 90 days. Company insiders own 0.03% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Brighton Jones LLC lifted its position in shares of Starbucks by 86.5% during the fourth quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company’s stock worth $16,126,000 after purchasing an additional 81,952 shares in the last quarter. Schnieders Capital Management LLC. lifted its position 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 purchasing an additional 1,164 shares during the last quarter. Flow Traders U.S. LLC bought a new position in Starbucks during the 2nd quarter worth approximately $288,000. Gamco Investors INC. ET AL lifted its stake in Starbucks by 92.8% during the second quarter. Gamco Investors INC. ET AL now owns 5,225 shares of the coffee company’s stock worth $479,000 after purchasing an additional 2,515 shares during the last quarter. Finally, NewEdge Advisors LLC lifted its position in shares of Starbucks by 7.6% in the 2nd quarter. NewEdge Advisors LLC now owns 112,710 shares of the coffee company’s stock worth $10,328,000 after buying an additional 7,978 shares during the last quarter. Institutional investors and hedge funds own 72.29% of the company’s stock.

Key Starbucks News

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%

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.