Starbucks Q3 Earnings Smash Estimates; Full-Year Guidance Lifted

summarizeSummary

Starbucks reported Q3 FY2026 results well above expectations, with 7.9% global comp growth, raised full-year guidance, and a clean exit from China operations.

check_boxKey Events · Earnings and Guidance · SBUX

• Q3 Earnings Beat Across the Board

  Revenue of $9.3B beat the $9.16B consensus; adjusted EPS of $0.85 crushed the $0.72 estimate. Global comparable store sales rose 7.9%, driven by 4.2% transaction growth and 3.5% higher ticket.

• Full-Year Guidance Raised

  Starbucks lifted its FY2026 non-GAAP EPS outlook to $2.55–$2.65, up from prior implied ~$2.30, and now expects U.S. comp sales growth slightly above 6% for the year.

• China Divestiture Completed

  The sale of Starbucks' China retail operations to a Boyu Capital-led joint venture closed, generating a $536.3M net gain. Starbucks retains a 40% stake and brand ownership.

• Margin Expansion Accelerates

  Non-GAAP operating margin expanded 430 bps to 14.4%, helped by sales leverage, lower inflation, and tariff refunds that largely offset earlier IEEPA tariff costs.

auto_awesomeAnalysis · SBUX · Trade & Services

A standout quarter underscores the turnaround's momentum. Global comparable store sales surged 7.9%, powered entirely by transaction growth and higher ticket. Revenue reached $9.3 billion, topping the $9.16 billion consensus, while adjusted EPS of $0.85 crushed the $0.72 estimate. Confidence in the trajectory prompted a full-year non-GAAP EPS guidance raise to $2.55–$2.65. The China divestiture closed, generating a $536 million gain and streamlining the international segment. Tariff refunds largely offset earlier costs, boosting margins. With four straight quarters of comp growth and two of margin expansion, the 'Back to Starbucks' plan is delivering its strongest signal yet that the turnaround is working.