Starbucks Stock Jumps as Q3 Earnings Beat, Sales Growth Drives Higher 2026 Outlook

Starbucks (NASDAQ: SBUX) delivered stronger-than-expected third-quarter results, fueled by solid customer traffic growth in North America and improving operational performance under its ongoing turnaround strategy. The coffee chain also raised its fiscal 2026 outlook, signaling confidence in sustained business momentum despite broader economic uncertainty.

Shares climbed 9% in after-hours trading as investors welcomed the company’s earnings beat and positive guidance. Chief Executive Officer Brian Niccol said the company’s “Back to Starbucks” strategy, which focuses on enhancing customer experience, improving store efficiency, and strengthening the brand, is producing measurable results.

For the 13-week period ended June 28, 2026, global comparable store sales increased 7.9%, outperforming analysts’ expectations of 5.73%. The growth was supported by a 4.2% rise in comparable transactions and a 3.5% increase in average ticket size, reflecting stronger customer demand rather than pricing alone.

North America remained a key growth driver, with comparable sales climbing 8.1% as customer visits rose 4.5%. Revenue in the region increased 7% to $7.4 billion, supported by higher delivery demand, stronger food sales, and continued interest in premium beverage customizations.

Overall net revenue slipped 1% year over year to $9.3 billion due to the restructuring of Starbucks’ China business into a licensed joint venture with Boyu Capital. Despite the decline, revenue exceeded Wall Street estimates of $9.12 billion.

Adjusted operating margin expanded 430 basis points to 14.4%, helped by stronger sales, disciplined cost management, and tariff relief that offset earlier cost pressures. Adjusted earnings reached $0.85 per share, comfortably beating the consensus estimate of $0.66 and rising 70% from a year earlier. GAAP earnings per share came in at $0.91, benefiting from gains tied to the China transaction.

Starbucks also reported strong performance in its Channel Development business, where revenue surged 22% to $587.9 million, driven by the Global Coffee Alliance. Segment operating margin improved to 52.1%.

Looking ahead, Starbucks raised its fiscal 2026 adjusted earnings guidance to $2.55–$2.65 per share and expects U.S. comparable sales growth to slightly exceed 6%, with global comparable sales approaching the same level. The company declared a quarterly dividend of $0.62 per share, its 65th consecutive quarterly payout, and ended the quarter with 41,304 stores worldwide after adding 175 net new locations. Management expects to open 600 to 650 net new stores during the fiscal year.