Starbucks delivered mixed results for its final quarter of fiscal 2026, with strong domestic performance offsetting weaker international sales. The company’s U.S. operations topped Wall Street expectations, while its international cafes failed to meet projections during the quarter ended September 27.
For the quarter, 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, a year prior. On an adjusted basis, the company earned 80 cents per share. Net revenue declined 4% to $9.14 billion, reflecting the transition of its China business to a joint venture model. Global same-store sales rose 7.2%, driven by increases in average transaction value and surpassing Wall Street estimates of 6%, while transactions grew 1.8%.
U.S. locations delivered same-store sales growth of 7.7%, exceeding StreetAccount estimates of 6.5% growth. CEO Brian Niccol attributed the domestic rebound to the “Back to Starbucks” strategy, which emphasizes service improvements, store atmospherics, and marketing initiatives designed to attract customers. The company highlighted record autumn launch performance for its seasonal menu and noted matcha beverages have become a $1 billion product category.
International same-store sales increased only 0.9%, as traffic declines offset improvements in average ticket size, falling short of analyst estimates of 3.2% growth. The company opened 303 net new cafes during the quarter and completed over 1,700 store renovations across the U.S. and Canada.
For fiscal 2027, Starbucks projected adjusted earnings per share between $3.15 and $3.25, exceeding Wall Street expectations of $3.14 per share. However, the company anticipates a 1% revenue decline, below analyst forecasts of 1.4% growth. North American same-store sales are projected to grow 4% for the fiscal year.
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