Starbucks posted a stronger-than-expected quarter and raised its full-year outlook.
Why it matters: The results offer a read on consumer spending at a major retail bellwether. They also suggest Starbucks' turnaround under CEO Brian Niccol is gaining traction.
- Global same-store sales rose 7.9% in fiscal third quarter 2026.
- U.S. same-store sales also climbed 7.9% in the April-June period.
- Revenue fell 1% to $9.3 billion, but still beat analyst expectations.
- Starbucks lifted full-year guidance for global same-store sales to 6% and adjusted EPS to $2.55-$2.65.
Starbucks reported fiscal third-quarter 2026 results on July 29 after market close, saying the quarter showed its turnaround effort gaining momentum. The company said global same-store sales rose 7.9%, with U.S. same-store sales also up 7.9% in the April-June period, according to AP.
Revenue fell 1% to $9.3 billion, but still topped analysts' expectations. Net income rose 87% to $1 billion, and adjusted earnings came in at 85 cents per share, also above the forecast cited by AP.
Starbucks raised its full-year fiscal 2026 guidance for global same-store sales growth to 6% from 5% previously. It also lifted adjusted EPS guidance to $2.55-$2.65, up from $2.25-$2.45. The company said S'mores Cold Brew was a strong limited-time summer offering and that fruity Refreshers continued to see strong demand.
Reuters reported that CEO Brian Niccol said faster service and more staffing helped bring customers back. Niccol said, "This was the quarter our momentum became truly measurable." He also said, "S’mores Cold Brew ... was particularly popular with Generation Z customers."
The report matters beyond Starbucks because the chain is a closely watched consumer-spending bellwether and a major turnaround story. Starbucks' fiscal year ends Sept. 28, 2026.
By the numbers
- 7.9% - Global same-store sales growth in fiscal Q3 2026.
- $9.3 billion - Revenue in the quarter, down 1% year over year.
- $2.55-$2.65 - Updated full-year adjusted EPS guidance.
Yes, but: Revenue still declined year over year, so the turnaround is not yet showing up in top-line growth.
What's next: Starbucks' fiscal 2026 year ends Sept. 28, 2026.