Starbucks Raises Full-Year Outlook After Strong Q2 2026 Earnings

For the 13-week quarter ending March 29, 2026, Starbucks reported revenue of $9.5 billion, up 9 % year-over-year, and adjusted earnings of $0.50 per share, beating analysts’ $0.43 estimate. Global same-store sales rose 6.2 %, driven by a 7.1 % increase in the United States and 2.6 % internationally. The company lifted its full-year guidance, now projecting global and U.S. same-store sales growth of at least 5 % (up from 3 %) and adjusted earnings per share of $2.25-$2.45 (up from $2.15-$2.40). Shares rose roughly 6 % in extended trading.

CNBC

Since taking the helm in late 2024, CEO Brian Niccol has driven a “Back to Starbucks” plan emphasizing faster service, simplified menus, and higher staffing levels. Initiatives such as “Green Apron Service,” store redesigns, and expanded food and beverage options aim to shorten wait times and lift transaction values. The strategy also includes closing underperforming stores, relocating 300 corporate staff to a new Nashville hub, and adding 150-175 net U.S. stores in 2026.

The Independent

• Adjusted EPS: $0.50 (vs. $0.43 expected)

CNBC

• Net income: $510.8 million, a 33 % YoY rise

CNBC

• Operating margin: 9.4 %, up 120 bps

Bloomberg

• Visits: up 5.5 % (Placer.ai)

CNBC

• Transaction growth: +3.8 %; average ticket: +2.3 %

CNBC

• China comparable sales: +0.5 % (below expectations)

CNBC

U.S. traffic grew for a second consecutive quarter, supported by enhanced seating, upgraded pastry displays, and menu innovations such as protein-boosted drinks and energy refreshers. While overall traffic rose, average spend showed mixed signals: one source reported a 1.6 % decline in average spend, whereas another noted higher per-transaction spend from food add-ons and customizations.

Bloomberg

Niccol told analysts that macro-level shocks—such as the war with Iran and rising fuel costs—have not yet translated into reduced consumer demand, but the company remains cautious. CFO Cathy Smith emphasized that demand trends stay strong while acknowledging heightened uncertainty from high gas prices and coffee-price volatility. The firm highlighted that cost-discipline and staffing investments are delivering margin improvements.

New York Times

Analysts flagged potential belt-tightening among lower-income consumers and warned that sustained high gas or utility costs could curb discretionary spending. Modest growth in China and exposure to coffee-price tariffs were also noted as risk factors for future performance.

New York Times

One source indicated a 1.6 % drop in average spend despite higher traffic, while another described increased per-transaction spend driven by food and customization purchases. The divergence reflects differing measurement windows and the impact of promotional pricing in specific markets.

CNBC

• “This quarter marked a milestone for Starbucks – and the turn in our turnaround,” — Brian Niccol, CEO

CNBC

• “Around the world, we're getting leaner and moving faster. We're holding ourselves accountable to clear standards. And clearly we are innovating with discipline. That focus is driving better execution. And, in turn, better results,” — Brian Niccol, CEO

Reuters

• “What we see with folks is, when you give them an experience that they feel is unique, differentiated, special, a little touch of luxury, it goes a long way. And we’re seeing that play out with every income cohort,” — Brian Niccol, CEO

Newsday

• “and while history demonstrates the resilience of our brand through periods of high gas prices, the current macroenvironment brings heightened uncertainty to our operating landscape and consumer behavior more broadly.” — Cathy Smith, CFO

New York Times

• “Changes implemented by the company over the last 18 months are fully bearing fruit,” — Matt Goodman, M Science analyst

Bloomberg

Starbucks plans to redesign 1,000 U.S. stores by year-end, continue expanding in the Southeast through the Nashville hub, and monitor coffee-price and tariff developments expected to ease in the second half of 2026. The firm will assess macro-economic trends before finalizing its full-year outlook.

Bloomberg