Starbucks (NASDAQ:SBUX) Announces Earnings Results

Key Points

• Starbucks beat estimates: Q2 EPS came in at $0.50 vs. $0.42 expected and revenue was $9.53 billion vs. $9.09 billion, and the company updated FY2026 guidance to $2.250–$2.450 in EPS.
• Dividend announced: Starbucks declared a quarterly dividend of $0.62 (annualized $2.48) for a 2.5% yield, noting a high payout ratio of 204.96%.
• Market reaction and valuation: Shares traded near $97.28 mid-day with a $110.8B market cap and a PE of 80.4, while analysts maintain a consensus "Moderate Buy" and a $104.75 target.

Starbucks (NASDAQ:SBUX - Get Free Report) issued its earnings results on Tuesday. The coffee company reported $0.50 earnings per share for the quarter, topping analysts' consensus estimates of $0.42 by $0.08, FiscalAI reports. Starbucks had a negative return on equity of 28.66% and a net margin of 3.63%.The business had revenue of $9.53 billion during the quarter, compared to analyst estimates of $9.09 billion. Starbucks updated its FY 2026 guidance to 2.250-2.450 EPS.

Starbucks Price Performance

Shares of NASDAQ:SBUX traded down $0.61 during mid-day trading on Tuesday, reaching $97.28. 9,433,176 shares of the company traded hands, compared to its average volume of 8,616,200. The company's 50 day moving average price is $96.11 and its 200-day moving average price is $90.61. The firm has a market cap of $110.83 billion, a PE ratio of 80.40, a PEG ratio of 2.23 and a beta of 0.95. Starbucks has a 52 week low of $75.50 and a 52 week high of $104.82.

Starbucks Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Friday, May 15th will be paid a dividend of $0.62 per share. The ex-dividend date is Friday, May 15th. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.5%. Starbucks's payout ratio is 204.96%.

Insider Activity at Starbucks

In related news, EVP Sara Kelly sold 2,500 shares of the stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $97.12, for a total value of $242,800.00. Following the completion of the sale, the executive vice president directly owned 59,609 shares of the company's stock, valued at approximately $5,789,226.08. This represents a 4.03% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Brady Brewer sold 588 shares of the stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $100.00, for a total transaction of $58,800.00. Following the completion of the sale, the chief executive officer directly owned 83,788 shares of the company's stock, valued at $8,378,800. This represents a 0.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 6,958 shares of company stock valued at $667,464 over the last three months. 0.03% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Starbucks

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Stansberry Asset Management LLC lifted its holdings in shares of Starbucks by 0.5% in the 4th quarter. Stansberry Asset Management LLC now owns 27,234 shares of the coffee company's stock valued at $2,293,000 after buying an additional 147 shares during the period. 44 Wealth Management LLC lifted its holdings in shares of Starbucks by 5.4% in the 2nd quarter. 44 Wealth Management LLC now owns 3,675 shares of the coffee company's stock valued at $337,000 after buying an additional 188 shares during the period. Rakuten Securities Inc. lifted its holdings in shares of Starbucks by 55.1% in the 2nd quarter. Rakuten Securities Inc. now owns 549 shares of the coffee company's stock valued at $50,000 after buying an additional 195 shares during the period. FSB Premier Wealth Management Inc. lifted its holdings in shares of Starbucks by 2.3% in the 2nd quarter. FSB Premier Wealth Management Inc. now owns 8,999 shares of the coffee company's stock valued at $825,000 after buying an additional 205 shares during the period. Finally, WCG Wealth Advisors LLC lifted its holdings in shares of Starbucks by 0.7% in the 3rd quarter. WCG Wealth Advisors LLC now owns 33,122 shares of the coffee company's stock valued at $2,802,000 after buying an additional 215 shares during the period. 72.29% of the stock is owned by hedge funds and other institutional investors.

Starbucks News Roundup

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Turnaround traction: Starbucks' investments in stores and new menu items have produced the chain's first quarter of traffic growth in two years, suggesting the strategy may be working and supporting hopes for improving revenue and eventual margin recovery. Starbucks is about to report earnings. Here's what to expect
• Positive Sentiment: Analysts have revised forecasts higher ahead of the print, with street models expecting the first EPS growth since 2023 and modest revenue gains — a positive catalyst if management confirms margin progress. Starbucks Likely To Report Higher Q2 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
• Positive Sentiment: Bullish media attention: high-profile commentary (e.g., Jim Cramer) and premarket strength reflect some investor optimism that Starbucks can “break out” if results show improving margins and traffic. Jim Cramer on Starbucks: “I Think It’s Ready to Break Out”
• Neutral Sentiment: Options and prediction markets imply a sizable post-earnings move (~6–7%), signaling elevated volatility rather than directional bias; traders should expect outsized stock swings around the print. Starbucks Is About to Report Q2 Earnings. Options Traders Expect 6.94% Move in SBUX Stock
• Neutral Sentiment: Corporate restructure: Starbucks’ move to establish a new headquarters in Nashville is a strategic shift that could lower costs long term but is operationally neutral short term. The CFO Playbook for Moving HQs and Unbundling Business Lines
• Negative Sentiment: Margin pressure persists: last quarter Starbucks beat revenue but missed on EPS as turnaround spending weighed on profit — investors will penalize any sign that margin recovery is still distant. Starbucks vs. McDonald’s: One Fast Food Dividend Has Quietly Become a Retirement Staple
• Negative Sentiment: China and JV concerns: reports highlight investor scrutiny of Starbucks’ China strategy after a joint‑venture surge, a potential source of downside if management provides tepid updates. What's Behind The Drop In Starbucks Stock?
• Negative Sentiment: Employee friction over HQ relocation: reporting shows pushback from some staff resisting the Seattle-to-Nashville move, raising the risk of execution costs and short-term disruption. Some Starbucks employees are resisting Seattle-to-Nashville move, report says

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on SBUX. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $113.00 price target on shares of Starbucks in a research note on Thursday, January 29th. Barclays set a $116.00 price target on Starbucks and gave the stock an "overweight" rating in a research note on Friday, January 30th. UBS Group reiterated a "neutral" rating on shares of Starbucks in a research note on Friday, January 30th. Piper Sandler reiterated an "overweight" rating and issued a $103.00 price objective (up from $100.00) on shares of Starbucks in a research note on Friday, January 30th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Starbucks in a research note on Wednesday, April 22nd. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Starbucks presently has a consensus rating of "Moderate Buy" and a consensus target price of $104.75.

About Starbucks

Starbucks Corporation is a global coffeehouse chain and roaster that operates, licenses and franchises coffee shops and related retail businesses. Founded in Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker, the company grew from a single store focused on whole-bean coffee and equipment into a broad consumer-facing brand. Howard Schultz, who joined the company later and served in senior leadership roles, is widely credited with transforming Starbucks into a mass-market specialty coffee retailer and expanding its footprint internationally.

Starbucks' core activities center on the retail sale of hot and cold specialty beverages, whole-bean and packaged coffees, teas and ready-to-drink products, along with complementary food items and merchandise such as mugs and brewing equipment.

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