Starbucks $SBUX raised its full-year earnings guidance on Wednesday after reporting fiscal third-quarter results that topped analyst expectations, driven by a 7.9% rise in global comparable store sales.
The coffee chain posted its fourth straight quarter of comparable sales growth and now expects adjusted EPS of $2.55 to $2.65 for fiscal 2026
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Starbucks $SBUX raised its full-year earnings guidance on Wednesday after reporting fiscal third-quarter results that topped analyst expectations, driven by a 7.9% rise in global comparable store sales.
For fiscal year 2026, the company has lifted its adjusted earnings per share target to a range of $2.55 to $2.65, versus the earlier guidance of $2.25 to $2.45. It also raised its outlook for U.S. same-store sales growth to slightly greater than 6% and global same-store sales growth to nearly 6%, compared with previous guidance of at least 5% for both.
For the quarter ended June 28, Starbucks recorded net income attributable to the company of $1.05 billion, or 91 cents per share, a significant jump from $558.3 million, or 49 cents per share, in the year-ago quarter. Excluding restructuring charges and other items, earnings per share came in at 85 cents. That beat analyst expectations of 66 cents per share, according to CNBC.
Net revenues slipped 1% to $9.32 billion, a decline the company attributed to its April divestiture of a controlling stake in its China retail operations to funds managed by Boyu Capital. Revenue exceeded analyst expectations of $9.16 billion.
The 7.9% global comparable sales gain was driven by a 4.2% lift in transaction volume alongside a 3.5% improvement in average ticket size. North America led with an 8.1% comparable sales increase and a 4.5% jump in customer traffic, clearing analyst estimates of 6%.
Starbucks received tariff refunds during the quarter after U.S. Customs and Border Protection opened a platform in April for importers to submit refund requests under the International Emergency Economic Powers Act. Chief financial officer Cathy Smith told analysts on the earnings call that those Q3 refunds essentially cancelled out the tariff costs the company had accumulated over the first nine months of fiscal 2026, according to CNBC.
Non-GAAP operating margin expanded 430 basis points year-over-year to 14.4%. GAAP operating margin widened 60 basis points to 10.5%.
"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," Chairman and Chief Executive Officer Brian Niccol said in a statement.
Shares of Starbucks surged as much as 9% in after-hours trading following the results.
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