Starbucks Corporation reported fiscal second‑quarter 2026 results on April 28 2026, posting consolidated revenue of $9.53 billion, up 9% year‑over‑year, and adjusted earnings per share of $0.50, a $0.06‑$0.08 beat on the consensus estimate of $0.42‑$0.44. Global comparable‑store sales grew 6.2%, driven by a 3.8% jump in transactions and a 2.3% rise in average ticket size. The company’s non‑GAAP operating margin expanded to 9.4%, up 110 basis points from the prior year, while the GAAP margin was 8.7%. Management raised its full‑year outlook, now forecasting comparable‑store sales growth of at least 5% and adjusted EPS of $2.25‑$2.45, compared with the previous $2.15‑$2.40 range.
North America contributed $6.9 billion in revenue, up 7% YoY, but its operating income fell to $679.9 million, reflecting a 170‑basis‑point contraction in operating margin to 10.2% due to labor investments, product‑mix shifts, and inflationary pressures. International revenue rose 10% to $2.1 billion, with operating income increasing to $398.6 million and operating margin expanding to 20.3%, underscoring the higher‑margin mix and scale advantages in that region.
"Our second quarter marked the turn in our turnaround as our Back to Starbucks plan drove both top and bottom line growth," said CEO Brian Niccol. CFO Cathy Smith added, "We've been clear that topline improvement would come first, with earnings growth to follow. The combination of our comp growth and cost discipline is starting to show up in margins." The plan focuses on faster service, higher transaction volumes, and a refreshed loyalty program, all of which are reflected in the stronger comparable‑store performance.
Starbucks also completed a joint venture with Boyu Capital in China, transitioning its retail operations to a licensed model while retaining a 40% stake. The move is expected to unlock long‑term potential and improve international operating margins, complementing the company’s broader strategy to shift toward higher‑traffic, higher‑margin stores.
Analysts responded positively to the results, raising their outlooks and noting that the EPS and revenue beats, coupled with the upward guidance, signal confidence in the company’s turnaround. The market reaction was broadly supportive, reflecting the first year‑over‑year earnings growth in more than two years and the momentum in U.S. comparable sales.
The earnings beat, margin improvement, and guidance upgrade reinforce Starbucks’ trajectory toward pre‑pandemic profitability levels. The company’s focus on higher‑traffic stores, a refreshed loyalty program, and the China joint venture positions it for sustained growth, while the North American margin contraction highlights ongoing investment in labor and product mix adjustments. Together, these developments suggest a solid foundation for continued upside in the coming quarters.
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