Starbucks (SBUX) earnings Q1 2026

Starbucks On Wednesday, the company reported mixed quarterly results as its turnaround hurt its profitability even as it boosted traffic growth for the first time in two years.

“Our first quarter results show that our ‘Return to Starbucks’ strategy is working, and we believe we are ahead of schedule,” CEO Brian Niccol said in a statement. “It’s great to see sales momentum as more customers choose Starbucks more often, and this is just the beginning.”

The company also shared its first financial outlook since suspending its October 2024 forecast. Starbucks expects adjusted earnings per share for fiscal 2026 to be between $2.15 and $2.40, at the lower end of Wall Street’s estimates of $2.35 per share, according to LSEG. The company also projects global and U.S. same-store sales growth of at least 3%.

Shares rose more than 8% in premarket trading.

Here’s what the company reported compared to Wall Street expectations for the quarter ending Dec. 28, according to a survey of LSEG analysts:

• Earnings per share: 56 cents vs. 59 cents expected
• Revenue: $9.92 billion, expected $9.67 billion

The coffee giant reported fiscal first-quarter net income attributable to Starbucks of $293.3 million, or 26 cents per share, compared to $780.8 million, or 69 cents per share, a year earlier. Along with turnaround-related costs, higher coffee prices and tariffs also weighed on the company’s margins during the quarter.

Excluding restructuring costs, impairment charges and other items, Starbucks earned 56 cents per share.

net sales It rose 6% to $9.92 billion, driven by the company’s second consecutive quarter of same-store sales growth.

Global same-store sales rose 4%, beating StreetAccount’s forecast of 2.3%. Traffic increased 3%, marking the first time the company’s transactions increased in two years.

U.S. same-store sales also rose 4%, driven by demand for holiday offerings like the viral “Bearista” cup and classic menu items like the peppermint mocha. In November, Niccol said the holiday menu launch was the best day ever for the company’s North American business.

Outside the U.S., Starbucks’ international same-store sales increased 5%.

Same-store sales in China, the company’s second largest market, increased 7%. During the quarter, the company announced plans to form a joint venture with Boyu Capital to handle its business in China. The deal is expected to close in the second quarter of fiscal 2026, pending regulatory approval.

Starbucks’ fiscal 2026 forecast assumes the company will continue to operate Starbucks China retail stores in the second half of the fiscal year.

The company also opened 128 net new locations during the quarter.

Starbucks plans to open 600 to 650 new company-owned and licensed cafes in fiscal 2026. This development comes after the company closed nearly 400 locations in the United States last year.

Investors expect to hear more details about Niccol’s strategy at an investor day in New York City on Thursday. Executives will also share the company’s new long-term financial goals.