Starbucks (NASDAQ:SBUX) Updates FY 2026 Earnings Guidance

Key Points

• Starbucks raised FY 2026 EPS guidance to $2.55–$2.65, above the analyst consensus of $2.39. The company also exceeded quarterly expectations with adjusted EPS of $0.85 and revenue of $9.32 billion.
• Global comparable-store sales increased 7.9%, while North American revenue rose 7% to $7.4 billion, suggesting the company’s turnaround efforts are gaining traction through improved staffing, scheduling and service.
• Shares rose 1% to $104.14, while analysts maintain a “Moderate Buy” consensus with an average price target of $109.42. Valuation and execution risks—including food availability, labor costs and dividend sustainability—remain important concerns.

Starbucks (NASDAQ:SBUX - Get Free Report) issued an update on its FY 2026 earnings guidance on Wednesday. The company provided earnings per share guidance of 2.550-2.650 for the period, compared to the consensus estimate of 2.390. The company issued revenue guidance of -, compared to the consensus revenue estimate of $37.7 billion.

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. Stephens started coverage on shares of Starbucks in a research note on Thursday, May 14th. They issued an "overweight" rating on the stock. Guggenheim restated a "neutral" rating and issued a $97.00 price target (up from $95.00) on shares of Starbucks in a research note on Wednesday, April 29th. Scotiabank lowered shares of Starbucks from a "market perform" rating to an "underperform" rating in a research note on Thursday, May 14th. Wedbush began coverage on Starbucks in a research note on Thursday, May 14th. They issued an "outperform" rating on the stock. Finally, Jefferies Financial Group began coverage on shares of Starbucks in a research report on Thursday, May 14th. They set a "buy" rating for the company. Nineteen investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $109.42.

Starbucks Stock Up 1.0%

Shares of NASDAQ:SBUX traded up $1.04 during midday trading on Wednesday, hitting $104.14. The stock had a trading volume of 12,377,837 shares, compared to its average volume of 8,251,375. The company's 50-day moving average price is $102.20 and its 200-day moving average price is $98.81. Starbucks has a fifty-two week low of $77.99 and a fifty-two week high of $109.23. The company has a market capitalization of $118.69 billion, a P/E ratio of 78.89, a price-to-earnings-growth ratio of 2.06 and a beta of 0.98.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.65 by $0.20. Starbucks had a net margin of 3.89% and a negative return on equity of 29.24%. The business had revenue of $9.32 billion for the quarter, compared to analyst estimates of $9.17 billion. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. Research analysts expect that Starbucks will post 2.41 EPS for the current fiscal year.

Starbucks Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be paid a $0.62 dividend. The ex-dividend date is Friday, August 14th. This represents a $2.48 annualized dividend and a dividend yield of 2.4%. Starbucks's dividend payout ratio (DPR) is presently 187.88%.

Insider Buying and Selling at Starbucks

In related news, CEO Brady Brewer sold 2,229 shares of the company's stock in a transaction on Monday, July 6th. The stock was sold at an average price of $104.00, for a total transaction of $231,816.00. Following the completion of the sale, the chief executive officer directly owned 77,364 shares in the company, valued at $8,045,856. This represents a 2.80% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 6,687 shares of company stock worth $679,033. 0.03% of the stock is owned by corporate insiders.

Starbucks News Summary

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Global comparable-store sales increased 7.9%, driven primarily by a 4.2% rise in comparable transactions. North American revenue grew 7% to $7.4 billion, indicating that demand is strengthening despite cautious consumer spending. Starbucks Reports Q3 Fiscal Year 2026 Results
• Positive Sentiment: Starbucks reported adjusted EPS of $0.85, versus the $0.65 analyst consensus, while revenue of $9.32 billion exceeded expectations of approximately $9.17 billion. GAAP EPS rose 86% to $0.91. Starbucks beats quarterly sales estimates
• Positive Sentiment: Management raised fiscal 2026 EPS guidance to $2.55–$2.65, above the roughly $2.39 consensus estimate. International margins also widened sharply, helping offset pressure from lower revenue following the China transaction. SBUX Earnings: Starbucks’ Stock Rises on Beat-and-Raise Quarter
• Positive Sentiment: More cafe labor, improved scheduling and faster service appear to be contributing to the recovery. Starbucks is now focusing on ensuring that popular food items remain available, which could support additional sales if execution improves. Starbucks’ Next Challenge
• Neutral Sentiment: The turnaround is gaining measurable traction, but the stock’s valuation remains demanding, with a high earnings multiple. Investors will likely require continued comparable-sales growth and margin improvement to support further gains.
• Negative Sentiment: Execution risks remain around food availability, labor costs and the company’s ability to sustain its dividend while funding the turnaround. Broader uncertainty surrounding interest rates and consumer spending could also limit near-term upside.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in SBUX. Brighton Jones LLC increased its holdings in shares of Starbucks by 86.5% during the fourth quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company's stock worth $16,126,000 after buying an additional 81,952 shares in the last quarter. Schnieders Capital Management LLC. grew its position in Starbucks by 47.0% during the 2nd quarter. Schnieders Capital Management LLC. now owns 3,642 shares of the coffee company's stock worth $334,000 after acquiring an additional 1,164 shares during the last quarter. Flow Traders U.S. LLC acquired a new position in Starbucks in the 2nd quarter worth about $288,000. Gamco Investors INC. ET AL raised its position in Starbucks by 92.8% in the second quarter. Gamco Investors INC. ET AL now owns 5,225 shares of the coffee company's stock valued at $479,000 after purchasing an additional 2,515 shares during the last quarter. Finally, NewEdge Advisors LLC boosted its stake in shares of Starbucks by 7.6% during the second quarter. NewEdge Advisors LLC now owns 112,710 shares of the coffee company's stock valued at $10,328,000 after purchasing an additional 7,978 shares in the last quarter. Institutional investors own 72.29% of the company's stock.

Starbucks Company Profile

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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