Starbucks delivered mixed results in its final quarter of fiscal 2026, with strong domestic performance offsetting weaker international numbers. The company’s U.S. operations exceeded analyst expectations, while its global operations faced headwinds from market challenges abroad.
For the quarter ended September 27, Starbucks reported net income attributable to the company of $677.2 million, or 59 cents per share, compared with $133.1 million, or 12 cents per share, in the prior year period. Excluding restructuring and impairment costs and other items, the company reported adjusted earnings per share of 80 cents. Net revenue declined 4% to $9.14 billion, reflecting the company’s transition of its China business to a joint venture model.
Global same-store sales increased 7.2%, driven by growth in average ticket and surpassing Wall Street estimates of 6%, according to StreetAccount data. U.S. cafes performed particularly well, reporting same-store sales growth of 7.7%, exceeding StreetAccount estimates of 6.5%. International comparable sales, however, rose only 0.9%, falling short of analyst expectations of 3.2% growth, as traffic declines offset higher average transactions.
Looking ahead to fiscal 2027, the company is projecting adjusted earnings per share between $3.15 and $3.25, exceeding Wall Street’s consensus expectation of $3.14 per share. However, Starbucks is anticipating a revenue decline of 1%, weaker than analyst forecasts of 1.4% net sales growth. The company is projecting North American same-store sales growth of 4% for the coming fiscal year. CEO Brian Niccol indicated the company is ahead of schedule in meeting its fiscal 2028 targets announced earlier in the year.
The company’s operational progress reflects its “Back to Starbucks” turnaround initiative, which has focused on service improvements, store ambiance enhancements, and marketing refinements. During the quarter, Starbucks opened 303 net new cafes and completed over 1,700 store upgrades across the U.S. and Canada designed to enhance customer experience through features such as increased seating and improved lighting.
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