Starbucks (NASDAQ:SBUX) Announces Quarterly Earnings Results

Starbucks (NASDAQ:SBUX) posted its quarterly earnings data on Tuesday. The coffee company reported $0.50 EPS for the quarter, beating analysts’ consensus estimates of $0.44 by $0.06, FiscalAI reports. The business had revenue of $9.53 billion during the quarter, compared to analysts’ expectations of $9.17 billion. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The business’s revenue was up 8.8% compared to the same quarter last year. During the same period in the previous year, the business earned $0.41 earnings per share. Starbucks updated its FY 2026 guidance to 2.250-2.450 EPS.

Here are the key takeaways from Starbucks’ conference call:

• Q2 delivered a clear inflection — consolidated revenue of $9.5 billion (+8%), global comps +6.2%, EPS of $0.50 (+22%), and management raised FY26 guidance to global comps of 5%+ and EPS of $2.25–$2.45.
• Operational turnaround is driving traffic and frequency — the Green Apron service, GROW Scorecard and store uplifts helped U.S. comps accelerate (>7%) with >4ppt transaction growth, Rewards 90‑day actives reached 35.6M, and U.S. delivery is up >30% YTD.
• China transaction closed post‑quarter — Starbucks received approximately $3.1B in gross proceeds and will deconsolidate China retail into a JV that management expects to be margin‑accretive, but consolidated revenues and standalone China reporting will be reduced going forward.
• Margin dynamics are mixed — consolidated operating margin improved to 9.4%, but much of international margin expansion reflected held‑for‑sale accounting (~$118M); North America margin contracted ~170bps amid Green Apron investments and ~190bps of product/distribution cost pressures (innovation mix, tariffs, higher coffee prices) that should moderate in H2.

Starbucks Stock Up 0.5%

Starbucks stock opened at $105.90 on Friday. The company has a fifty day simple moving average of $96.53 and a 200-day simple moving average of $91.03. The firm has a market capitalization of $120.65 billion, a price-to-earnings ratio of 80.23, a PEG ratio of 2.17 and a beta of 1.02. Starbucks has a 52-week low of $77.99 and a 52-week high of $107.52.

Starbucks Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Friday, May 15th will be issued a dividend of $0.62 per share. The ex-dividend date of this dividend is Friday, May 15th. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.3%. Starbucks’s dividend payout ratio is presently 187.88%.

Insider Activity

In other Starbucks news, EVP Sara Kelly sold 2,500 shares of the stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $97.12, for a total value of $242,800.00. Following the completion of the sale, the executive vice president owned 59,609 shares in the company, valued at approximately $5,789,226.08. This represents a 4.03% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Brady Brewer sold 1,641 shares of the firm’s stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $97.12, for a total transaction of $159,373.92. Following the completion of the transaction, the chief executive officer directly owned 86,605 shares in the company, valued at $8,411,077.60. This trade represents a 1.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 8,958 shares of company stock worth $877,464. Insiders own 0.03% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Stansberry Asset Management LLC grew its holdings in shares of Starbucks by 0.5% in the fourth quarter. Stansberry Asset Management LLC now owns 27,234 shares of the coffee company’s stock valued at $2,293,000 after purchasing an additional 147 shares in the last quarter. 44 Wealth Management LLC increased its position in shares of Starbucks by 5.4% during the second quarter. 44 Wealth Management LLC now owns 3,675 shares of the coffee company’s stock worth $337,000 after acquiring an additional 188 shares during the period. Rakuten Securities Inc. raised its stake in shares of Starbucks by 55.1% in the second quarter. Rakuten Securities Inc. now owns 549 shares of the coffee company’s stock valued at $50,000 after acquiring an additional 195 shares in the last quarter. FSB Premier Wealth Management Inc. boosted its holdings in Starbucks by 2.3% in the second quarter. FSB Premier Wealth Management Inc. now owns 8,999 shares of the coffee company’s stock valued at $825,000 after purchasing an additional 205 shares during the period. Finally, WCG Wealth Advisors LLC boosted its holdings in Starbucks by 0.7% in the third quarter. WCG Wealth Advisors LLC now owns 33,122 shares of the coffee company’s stock valued at $2,802,000 after purchasing an additional 215 shares during the period. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Starbucks News Roundup

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Q2 beat-and-raise: Starbucks reported stronger-than-expected revenue and EPS and lifted FY26 guidance, with comps recovering — the primary catalyst for the rally. Starbucks Stock Gains as Q2 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: High-profile endorsement: Jim Cramer and other commentators praised the quarter and improving margins, helping investor confidence in a durable turnaround. Jim Cramer Explains Why Improving Margins Will Make Starbucks Stock Cheap
• Positive Sentiment: “Back to Starbucks” investment showing results: the ~$500M program to simplify service, add staff and speed orders is credited with lifting traffic and loyalty engagement. Starbucks Invested $500 Million in a Turnaround and Now Wall Street Is Drinking Up SBUX Stock
• Neutral Sentiment: Execution improvements (shorter lines, faster pours, rewards tweaks) support growth but need sustained roll-out to lift margins meaningfully. Starbucks speeds up wait times with 4-minute lines…
• Neutral Sentiment: Corporate moves (new Nashville hub, footprint/office shifts) are strategic but not material to near-term top-line momentum. Starbucks is heading to Nashville — and it’s part of a bigger fast-food migration south
• Neutral Sentiment: Insider sale disclosed (EVP sold shares under a pre-arranged 10b5-1 plan) — notable but executed under a trading plan, so not an immediate red flag. Sara Kelly Sells 2,000 Shares of Starbucks (NASDAQ:SBUX) Stock
• Negative Sentiment: Margin pressure remains: higher labor and store-investment costs are constraining profit recovery, so the market will watch operating-margin trends closely. Starbucks customers are coming back. Profits haven’t caught up yet.
• Negative Sentiment: Valuation questions after strong run: some analysts warn the stock’s rapid gain may have priced in much of the turnaround, raising downside risk if margins lag. Has Starbucks (SBUX) Run Too Far After Its 32% One Year Share Price Gain?

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on SBUX shares. New Street Research set a $90.00 target price on Starbucks in a research report on Tuesday, January 27th. DA Davidson upped their price objective on shares of Starbucks from $97.00 to $102.00 and gave the stock a “neutral” rating in a research report on Wednesday. Zacks Research raised shares of Starbucks from a “strong sell” rating to a “hold” rating in a report on Tuesday, January 27th. William Blair upgraded shares of Starbucks from a “market perform” rating to an “outperform” rating in a research report on Thursday, January 22nd. Finally, Wells Fargo & Company reissued an “overweight” rating and set a $115.00 target price (up from $110.00) on shares of Starbucks in a research note on Wednesday. Sixteen equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Starbucks has an average rating of “Moderate Buy” and a consensus target price of $106.93.

Starbucks Company Profile

Starbucks Corporation is a global coffeehouse chain and roaster that operates, licenses and franchises coffee shops and related retail businesses. Founded in Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker, the company grew from a single store focused on whole-bean coffee and equipment into a broad consumer-facing brand. Howard Schultz, who joined the company later and served in senior leadership roles, is widely credited with transforming Starbucks into a mass-market specialty coffee retailer and expanding its footprint internationally.

Starbucks’ core activities center on the retail sale of hot and cold specialty beverages, whole-bean and packaged coffees, teas and ready-to-drink products, along with complementary food items and merchandise such as mugs and brewing equipment.