Starbucks Reports Strong Q3 Earnings with Improved Profitability and Raised Guidance
Starbucks reported strong third-quarter results for fiscal 2026, driven by global comparable sales growth of 7.9% and a significant increase in diluted earnings per share (EPS) to $0.85, up about 70% year over year. North America led the performance with an 8.1% rise in comparable sales, supported by higher transactions and average ticket sizes. The company also saw its consolidated operating margin expand by 430 basis points to 14.4%, aided by cost savings, lower inflation, and tariff refunds. Starbucks raised its full-year fiscal 2026 guidance, projecting adjusted EPS between $2.55 and $2.65 with an expected operating margin above 11%. The company has restructured its China operations into a joint venture in which it owns 40%, resulting in the repayment of approximately $1.8 billion in debt during the quarter. The results reflect progress under Starbucks' 'Back to Starbucks' turnaround strategy, including continued investment in store improvements and digital engagement through initiatives like the Rewards program.
Tickers: $SBUX
Topics: Comparable Sales Growth Debt Repayment Earnings Report Operating Margin Expansion Starbucks