Starbucks (SBUX) Q2 2026 Earnings

Starbucks On Tuesday, it raised its full-year forecast for comparable earnings and same-store sales growth after reporting traffic growth for the second straight quarter.

“This quarter represents a milestone for Starbucks — and a transformational one in our transformation,” CEO Brian Nicol said in a video posted alongside the company’s second-quarter financial results.

For fiscal 2026, Starbucks said global and U.S. same-store sales are now expected to increase at least 5%, up from its previous forecast of a 3% increase. Starbucks also raised its adjusted earnings per share forecast to a range of $2.25 to $2.45 from its previous range of $2.15 to $2.40 per share.

Alarmed by the current war between the United States and Iran and its implications for fuel, a few companies have chosen to raise their full-year forecasts when announcing their quarterly results in recent weeks, making Starbucks even more unusual.

Niccol said rising gas prices haven’t changed Starbucks customer behavior yet, though he acknowledged the company’s higher forecast increase is cautious — compared to its outperformance this quarter.

Starbucks shares rose about 5% in extended trading.

Here’s what the company reported for the period ending March 29 compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:

• Earnings per share: 50 cents adjusted versus 43 cents expected
• Revenue: $9.53 billion versus $9.16 billion expected

Starbucks reported fiscal second-quarter net income attributable to the company of $510.9 million, or 45 cents per share, up from $384.2 million, or 34 cents per share, a year earlier.

Excluding restructuring and impairment costs as well as other items, the company generated profit of 50 cents per share, beating Wall Street expectations.

Net sales rose nearly 9% to $9.53 billion, the company said.

Starbucks’ global store sales, which only include coffee shops open for at least a year, rose 6.2%, helped by increased visits to its locations. Wall Street had expected same-store sales to grow 4%, according to StreetAccount estimates.

The company continued to see similar growth in same-store sales through April, Nicol said on the company’s earnings conference call.

North America, the company’s home market, led most of the same-store sales growth during the quarter. U.S. same-store sales rose 7.1%, driven by a 4.3% jump in transactions.

This marks the second straight quarter of traffic growth for Starbucks’ U.S. cafes, indicating that the company’s turnaround has taken hold.

Under Nicole’s leadership, the chain has cut back on discounts and instead focused on attracting customers back by improving café operations, adding interesting new menu items, and reintroducing seating at its locations.

“We haven’t seen this transaction strength in years,” Nicoll said during the company’s earnings call.

CFO Kathy Smith said Starbucks’ U.S. sales growth came through its menu, from new artisan bakery products to the growing popularity of its cold protein foam.

Outside the United States, growth has been more tepid. International store sales rose 2.6%.

China, the company’s second-largest market, weighed on its results, with same-store sales growth of just 0.5%. Starbucks was relying on more discounts in China to attract more traffic, which resulted in a 2.1% increase in visits and a 1.6% decrease in average spending.

Boyu Capital closed its deal to buy a majority stake in Starbucks’ China business at the beginning of the fiscal third quarter, Smith said on the phone call. The alternative asset management company now has a 60% stake in a joint venture with Starbucks in the region.

Going forward, Starbucks does not plan to share standalone revenue in China and same-store sales because they are now considered part of the company’s licensed portfolio, she added.