Starbucks Stock Earnings Reports

Starbucks reported a clear inflection in Q2 FY2026: consolidated revenue of $9.5 billion (≈ +9% YoY), global comparable store sales +6.2% (U.S. comps +7.1%) and consolidated operating margin improved to 9.4% (≈ +110 bps), yielding EPS of $0.50 (+22% YoY). Management attributes the turnaround to the "Back to Starbucks" program—improvements in in-store operations (Green Apron Service), faster throughput, disciplined menu innovation, stronger marketing, and a revitalized Rewards program (90-day active members 35.6M). Delivery and Cold Foam/refresher innovation drove incremental transactions and ticket. International showed broad-based recovery (top 10 markets, including China, posted positive comps), and Starbucks closed its China retail transaction with Boyu (company expects >$13B value and received ~$3.1B gross proceeds). Outlook was raised: fiscal 2026 global comp guidance to 5%+ and EPS guidance to $2.25–$2.45. Management reiterated a $2 billion multi-year cost savings program (through FY2028), expects consolidated revenues roughly flat for FY2026 due to China JV accounting, and plans ~600–650 net new stores (450–500 international, ~150–175 U.S.). Key risks/puts-and-takes include near-term product & distribution cost pressure (tariffs, elevated coffee costs), North America margin headwinds from annualized Green Apron investments and legal accruals, and broader macro/gas-price uncertainty that management is monitoring.