Starbucks beat earnings and revenue estimates last quarter amid its turnaround efforts, and has raised its full-year guidance.
Earnings per share were up 22% year-over-year to US$0.50, above LSEG-compiled estimates of $0.43. Revenue increased 9% to $9.53 billion, passing estimates of $9.16 billion.
“Our second quarter marked the turn in our turnaround as our Back to Starbucks plan drove both top and bottom line growth,” said chair and CEO Brian Niccol.
“This is the Starbucks our customers deserve and the Starbucks we believe will deliver long-term growth and value for our partners and shareholders as we execute consistently, at-scale.”
Comparable store sales rose 6.2%, surpassing StreetAccount estimates of 4%. This is its third consecutive quarterly increase in comparable sales.
The quarter’s growth was spurred by 3.8% growth in comparable transactions and a 2.3% increase in average ticket. North American comparable store sales were up 7.1%, while international sales climbed 2.6% amid slow growth in China.
Starbucks raised its fiscal 2026 guidance to include global and United States comparable store sales growth of at least 5.0%, flat net revenue, and earnings per share of $2.25-2.45. It had projected sales growth of at least 3% and earnings per share of $2.15-2.40 in the prior quarter.
The company opened 11 net new locations last quarter, reaching 41,129 worldwide.
International stores increased by 3% to 22,744, while its North American store count shed 1% to 18,385. It had closed 107 net stores in 2025’s fourth quarter, including 627 shuttered under its restructuring plans.
Total operating income increased by 37.8% to $828.1 million. Operating expenses were up 6.5% to $8.75 billion due to a 17.2% increase in product and distribution costs.
Shares in Starbucks (NASDAQ: SBUX) closed 0.6% lower at $97.28, but spiked 5.5% after-hours following the earnings release. Its market capitalisation is $110.83 billion.
