Starbucks (SBUX) Q1 2026 earnings

Starbucks On Wednesday, it reported mixed quarterly results as the company’s turnaround drove traffic growth for the first time in two years but weighed on its bottom line.

“Our first-quarter results show that Starbucks’ return to strategy is working and we believe we are ahead of schedule,” Brian Nicol, the company’s CEO, said in a statement. “It’s great to see sales momentum driven by more customers choosing Starbucks more often, and this is just the beginning.”

The company also shared its first financial outlook since suspending its outlook in October 2024. For fiscal 2026, Starbucks expects adjusted earnings per share in the range of $2.15 to $2.40, on the lower end of Wall Street’s estimate of $2.35 per share, according to LSEG. The company also expects global and US store sales growth of at least 3%.

Shares rose more than 8% in premarket trading.

Here’s what the company reported for the quarter ending December 28 compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:

• Earnings per share: 56 cents adjusted versus 59 cents expected
• Revenue: $9.92 billion versus $9.67 billion expected

The coffee giant reported fiscal first-quarter net income attributable to Starbucks of $293.3 million, or 26 cents per share, down from $780.8 million, or 69 cents per share, a year earlier. In addition to transition-related costs, higher coffee prices and tariffs impacted the company’s margins during the quarter.

Excluding restructuring costs, impairment charges and other items, Starbucks had profit of 56 cents per share.

Net sales They rose 6% to $9.92 billion, driven by a second straight quarter of same-store sales growth.

Global store sales rose 4%, beating StreetAccount estimates of 2.3%. Traffic grew by 3%, the first time the company’s transactions had grown in two years.

U.S. same-store sales also rose 4%, boosted by demand for holiday offerings, such as the ubiquitous “Bearista” mug and classic menu items like the mint mocha. In November, Nicol said the launch of the holiday menu was the best day ever for the company’s North American business.

Outside the United States, Starbucks’ international store sales rose 5%.

China, the company’s second-largest market, saw same-store sales grow 7%. During the quarter, the company announced its plans to form a joint venture with Boyu Capital to manage its business in China. The transaction is expected to close in the second quarter of fiscal 2026, pending regulatory approval.

Starbucks’ fiscal 2026 outlook assumes that the company will continue to operate Starbucks retail stores in China in the second half of the fiscal year.

The company also opened 128 new locations during the quarter.

In fiscal year 2026, Starbucks plans to open between 600 and 650 new company-owned and franchised coffee shops. This development comes on the heels of the company closing nearly 400 US locations last year.

Investors expect to hear more details about Nicole’s strategy on Thursday at its investor day in New York City. Executives will also share the company’s new long-term financial goals.