Starbucks (SBUX) Q3 2026 earnings summary

Executive summary

• Achieved four consecutive quarters of global comparable sales growth and two consecutive quarters of consolidated margin expansion, with Q3 comparable store sales up 7.9% driven by transaction growth and higher average ticket.

• Q3 consolidated net revenues declined 1% year-over-year to $9.3 billion, mainly due to the China retail business transition to a joint venture model.

• EPS grew 86% (GAAP) to $0.91 and 70% (non-GAAP) to $0.85 year-over-year in Q3.

• The China divestiture resulted in a $536.3M pre-tax gain and a shift to equity method accounting for the new joint venture.

• Brand affinity, consideration, and purchase intent reached five-year highs, with Starbucks Rewards membership at 35.8 million active members in the U.S.

Financial highlights

• Global comparable store sales increased 7.9% year-over-year, led by North America up 8.1% and International up 5.7%.

• Q3 consolidated operating margin expanded 430 basis points year-over-year to 14.4% (non-GAAP); GAAP operating margin was 10.5%, up 60 basis points.

• Net earnings attributable to shareholders rose 87% to $1,045.3 million; diluted EPS was $0.91.

• North America segment revenues reached $7.4 billion, with U.S. comps up 7.9% (transactions +4.2%, average ticket +3.6%).

• Channel Development Q3 revenues increased 22% to $587.9 million, with operating margin up 700 basis points to 52.1%.

Outlook and guidance

• Raised full-year 2026 guidance: U.S. comparable store sales growth expected slightly above 6%, global comparable store sales growth nearing 6%.

• FY26 consolidated net revenues expected to be flat to slightly higher year-over-year, reflecting China JV impact.

• Non-GAAP consolidated operating margin guidance raised to greater than 11%; EPS guidance increased to $2.55–$2.65.

• Expect 600–650 net new coffeehouse openings in FY26, with international as the main growth driver.

• Restructuring plans anticipated to complete by the first half of fiscal 2027, with $230M in additional charges expected.