Starbucks reported quarterly earnings and revenue that exceeded analysts' expectations, driven by a sustained turnaround under CEO Brian Niccol. The company, now in its third year of a revitalization plan, posted global same-store sales growth of 7.9% — topping Wall Street estimates of 6%.
The coffee chain's U.S. same-store sales rose 8.1% in the quarter, while international same-store sales increased 5.7%. The results mark a reversal from the same period a year earlier, when global same-store sales declined 2%. Net sales fell 1% to $9.3 billion, primarily due to the sale of a controlling stake in its China business to Boyu Capital in November.
Starbucks' adjusted earnings per share for the quarter, beating analyst expectations of $0.56.
Excluding items, Starbucks earned 85 cents per share, surpassing the 56 cents analysts had forecast. Revenue came in at $9.3 billion, above the expected $9.2 billion. The company credited trendier products, faster service, and more food options for the boost.
This was the quarter our momentum became truly measurable.
Starbucks' turnaround has been gaining traction. In Q2, the company raised its full-year profit and same-store sales growth outlooks. As of that quarter, it expected global and U.S. comparable store sales growth of more than 5% for fiscal 2026, up from previous guidance of 3% or greater. The company also increased its fiscal 2026 earnings per share forecast to $2.25-$2.45 from $2.15-$2.40.
Following the latest quarterly results, Starbucks raised its outlook again. For fiscal 2026, it now expects adjusted earnings per share of $2.55 to $2.65, up from $2.25 to $2.45. Global same-store sales are projected to rise nearly 6%, and U.S. same-store sales are expected to climb more than 6%, compared with the prior forecast of at least 5%.
The company's momentum was supported by a $2 billion revamp of its Refreshers business and the launch of two new drinks — Blue Coconut Refresher and Iced Blue Coconut Matcha — in June. According to Placer.ai, Starbucks visits outpaced the broader industry in May and June. Analyst Sharon Zackfia of William Blair said she expects a third straight quarter of solidly positive traffic at 2% to 3%.
Starbucks shares jumped more than 7% in extended trading following the earnings release.