Updated
Updated · The Motley Fool · Jul 28
Starbucks Lifts Fiscal 2026 EPS Outlook 10% to $2.55-$2.65 on 7.9% Sales Growth
Updated
Updated · The Motley Fool · Jul 28

Starbucks Lifts Fiscal 2026 EPS Outlook 10% to $2.55-$2.65 on 7.9% Sales Growth

3 articles · Updated · The Motley Fool · Jul 28

Summary

  • $2.55 to $2.65 is Starbucks' new fiscal 2026 adjusted EPS target, up from $2.25 to $2.45 after third-quarter adjusted EPS jumped 70% to $0.85.
  • 7.9% global comparable-sales growth drove the upgrade, with transactions up 4.2% and average ticket up 3.5%, showing demand came more from customer traffic than price increases.
  • 14.4% adjusted operating margin, up 430 basis points, improved faster than sales on leverage, lower inflation and a largely one-time tariff refund.
  • $9.3 billion in revenue slipped 1% because of Starbucks' China joint-venture conversion, while the chain still ended the quarter with 41,304 stores after 175 net openings.
  • Shares rose about 5% after hours as Starbucks also lifted its full-year U.S. comparable-sales outlook to slightly above 6%, though the stock still trades near 42 times earnings.

Insights

How did slashing its menu and reducing discounts paradoxically trigger Starbucks' biggest sales and profit surge in years?
Can Starbucks sustain its remarkable comeback, or will rising labor and coffee costs quietly erase its newfound profit margins?
Will surrendering control of its massive China market be the genius move that saves Starbucks, or a fatal long-term mistake?