Starbucks Earnings Beat, Raises FY Guidance
Starbucks earnings beat with Q2 revenue $9.5B and the company raised FY2026 adjusted EPS guidance to $2.25-$2.45, supporting upside positioning.
KEY TAKEAWAYS
- Q2 net revenues were $9.5 billion and global comparable store sales rose 6.2%.
- Adjusted EPS outpaced consensus at $0.50 while GAAP diluted EPS was $0.45.
- Company raised FY2026 adjusted EPS guidance to $2.25-$2.45 and lifted comp sales outlook to 5%.
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Starbucks Corporation reported Q2 results on April 28, 2026, with earnings surpassing forecasts as comparable-store sales rose 6.2%. The company raised its FY2026 adjusted EPS and sales guidance, citing faster service and improved staffing that boosted customer traffic.
Quarter Results and Outlook
For the 13 weeks ended March 29, 2026, Starbucks posted net revenues of $9.5 billion, a 9.0% increase year-over-year. Global comparable store sales rose 6.2%, driven by a 3.8% increase in comparable transactions, with U.S. comps up 7.1% and international comps 2.6%. Diluted GAAP earnings per share were $0.45, while adjusted EPS reached $0.50, exceeding the $0.43 consensus.
The company raised its FY2026 guidance to adjusted EPS of $2.25 to $2.45 and lifted its full-year comparable store sales outlook to 5.0%. Management attributed the momentum to investments in faster service and improved staffing under CEO Brian Niccol.
China Joint Venture and Tax Impact
The Q2 10-Q filing showed operating income of $828 million, up 38% year-over-year, with an operating margin of 8.7%, compared to roughly 6.9% previously. The improvement reflected sales leverage and lower depreciation after certain China retail assets were reclassified as held for sale.
Year-to-date net earnings declined to $804 million from $1.2 billion a year earlier, while the effective tax rate rose to 46.1% from 23.6%. This shift resulted from the reorganization of Starbucks’ China entities and changes in indefinite reinvestment treatment.
Starbucks recorded $113 million of restructuring and impairment charges year-to-date and closed 227 stores under its "Back to Starbucks" strategy. The filing lists China retail assets as held for sale and discloses $3.1 billion in consideration for a planned divestiture of a 60% stake to a joint venture.
The company’s global store base stood at about 41,000 locations, including roughly 18,000 in the U.S., after a first-quarter net addition of 128 stores.
Together, the upgraded guidance, stronger operating margin, expected proceeds from the China joint venture, and higher tax rate will shape Starbucks’s reported FY2026 net income and cash-flow profile.
