Starbucks elevated its fiscal 2026 adjusted earnings per share outlook to a range of $2.55 to $2.65, compared with the prior guidance of $2.25 to $2.45. The company also increased projections for same-store sales growth, now expecting global increases of nearly 6% and U.S. growth exceeding 6%, up from previous forecasts of at least 5% for both metrics.
The coffee chain reported third-quarter results that surpassed Wall Street expectations. Net income attributable to Starbucks reached $1.05 billion, equivalent to 91 cents per share, compared with $558.3 million or 49 cents per share in the year-ago period. Operating margins expanded to 13.6% from 13.3% in the prior-year quarter, aided partly by tariff refunds that the company said substantially offset tariff costs incurred during the first three quarters of fiscal 2026. On an adjusted basis, earnings per share totaled 85 cents.
Net sales declined 1% to $9.3 billion, primarily reflecting the company’s sale of a controlling stake in its China operations through a joint venture arrangement. Despite the overall revenue decrease, same-store sales for locations open at least 13 months rose 7.9%, exceeding analyst estimates of 6%. North American same-store sales increased 8.1%, with traffic climbing 4.5% and average check rising 3.5%. The company’s Refreshers beverage platform generated double-digit revenue growth and has become a $2 billion business line.
Management attributed the performance gains to CEO Brian Niccol’s “Back to Starbucks” strategy, which emphasizes service improvements and cafe renovations. During the quarter, the company completed over 1,000 cafe “uplifts” ahead of schedule and opened 175 net new stores. Starbucks is now targeting at least 1,500 store renovations by fiscal year-end, with individual projects averaging approximately $150,000. The company is also assessing its North American store footprint for potential additional closures. Stock shares closed more than 1% higher following the announcement.
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