Starbucks reported $9.32 billion in revenue for the fiscal 2026 third quarter, surpassing the consensus estimate of $9.16 billion, the company said on July 29 [1]. Adjusted earnings per share came in at 85 cents, beating analyst expectations of 66 cents [1]. Global comparable store sales rose 7.9% year-over-year, outpacing the projected 5.7% growth [1, 2]. This marks the fourth quarter in a row of global comparable store sales increases [3, 2].
The company highlighted expanded North America margins—the first improvement in over two years excluding tariff refund benefits [3]. Adjusted operating margin reached 14.4% for the quarter ended June 28, ahead of forecasts [2]. Starbucks has remodeled more than 1,000 locations so far, with plans to retrofit up to 8,000 stores to enhance customer experience [3, 2]. CEO Brian Niccol said, "Once we remodel the front of house or do the uplift, we quickly see customers trying to respond in actually every access point. Customers just feel better about the coffeehouse and ultimately they feel better about the Starbucks brand" [3].
New product launches, including blue coconut beverages, iced fruit drinks, Mush overnight oats, and chicken wraps, have contributed to increased customer interest [2]. The company is also investing in hiring and staff training to improve service and sales [2]. Cost-cutting measures include streamlining the corporate structure, closing underperforming stores, and selling a stake in its China business to a local partner [2].
Starbucks shares rose more than 3% to about $107 the day after the earnings release [3]. The stock has gained between 23% and 26% year-to-date in 2026, outperforming both the S&P 500 and the consumer discretionary sector index [1, 3, 2]. CNBC's Jim Cramer called the quarter "the inflection," suggesting the stock could rise well above the $100 level [3]. CFO Cathy Smith said the results "offer confidence in the trajectory of our business" [2].
CEO Brian Niccol expressed optimism about 2027, citing increased customer visits and strong sales momentum [4, 3, 2]. The company will continue remodeling stores, improving service, and driving innovation as it moves into the next fiscal year.
