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Starbucks Forecast Beats Estimates, Launches $1B Buyback

By Drooid · Oct 30, 2026 · How we work

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Summary

Starbucks forecast fiscal 2027 adjusted earnings per share of $3.15-$3.25, topping the $3.14 estimate.
The company launched a $1 billion share repurchase program to return capital to shareholders.
Starbucks sold control of its Chinese operations to Boyu Capital for $4 billion, prompting a 2% share dip in after-hours trading.
CEO Brian Niccol said the “Back to Starbucks” plan will emphasize AI tech and restructuring to offset $500 million labor costs.

History

Apple’s 2012 $10 billion buyback, announced by CEO Tim Cook, lifted earnings per share 8 % and reflected a broader surge in U.S. share repurchases that began in the late-1990s, when open-market buybacks grew to dominate roughly 95 % of programs. Starbucks later followed with a $1 billion buyback, using the same tactic to signal confidence amid cost pressures.

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Apple’s 2012 $10 billion buyback, announced by CEO Tim Cook, lifted earnings per share 8 % and reflected a broader surge in U.S. share repurchases that began in the late-1990s, when open-market buybacks grew to dominate roughly 95 % of programs. Starbucks later followed with a $1 billion buyback, using the same tactic to signal confidence amid cost pressures.

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