Starbucks lifts outlook after Q3 beat

Starbucks (SBUX) delivered fiscal third-quarter 2026 results that surpassed market estimates, with adjusted earnings per share of $0.85 and consolidated revenue of about $9.32 billion. Net income attributable to the company reached $1.05 billion, or $0.91 per share, illustrating a strong year-over-year improvement in profitability.

Sales at stores open at least 13 months climbed about 7.9% globally in the quarter, marking the company’s fourth straight period of comparable-sales growth. In the United States, same-store sales rose 8.1%, underscoring continued demand in Starbucks’ (SBUX) largest market despite a modest decline in overall net sales.

Net sales fell about 1% to $9.3 billion, partly reflecting the impact of the sale of a controlling stake in the company’s China business. Operating margins expanded to 13.6%, and tariff refunds received in the quarter largely offset related tariffs incurred earlier in fiscal 2026.

On the back of the stronger quarter, Starbucks raised its full-year fiscal 2026 guidance. The company now expects adjusted earnings per share in a range of $2.55 to $2.65, up from a prior outlook of $2.25 to $2.45, signaling increased confidence in its earnings power.

Starbucks also lifted its forecast for global comparable-store sales and now projects growth of slightly more than 6% for the fiscal year, compared with a previous expectation of about 5%. The improved outlook reflects the sustained momentum seen in same-store sales over the past four quarters.

Management highlighted that this quarter marked a point where the company’s momentum became clearly measurable, linking the performance to ongoing operational and strategic initiatives. The upgraded guidance aligns with the stronger-than-expected earnings and same-store sales trajectory.

Starbucks continued to expand and refresh its retail footprint during the quarter, opening 175 net new stores. The company ended the period with about 41,304 total locations, underscoring its large global presence and ongoing growth strategy.

Alongside new openings, Starbucks reported that it has surpassed 1,000 cafe “uplifts,” which encompass upgrades to existing stores. The company is targeting at least 1,500 store renovations by the end of fiscal 2026 as part of efforts to enhance the customer experience and support sales growth.

These investments in new and existing locations are designed to support operational efficiency and customer traffic, complementing the company’s focus on service improvements and menu initiatives. The combination of expansion and renovation underpins the raised full-year outlook.

The stronger-than-expected quarterly performance and upgraded guidance were met with a positive reaction in financial markets. Shares rose strongly in extended trading after the results, jumping roughly 8–9% and trading at or near 52-week highs.

The stock move reflects investor recognition of Starbucks’ four consecutive quarters of comparable-sales growth and improved profitability metrics. With higher guidance for both earnings and same-store sales, the company signaled that its current momentum may continue through the remainder of fiscal 2026.