Starbucks

SBUX Q3 2025 Earnings

Reported Jul 29, 2025 at 4:06 PM ET · SEC Source

Q3 25 EPS

$0.50

MISS 22.56%

Est. $0.65

Q3 25 Revenue

$9.46B

BEAT +1.58%

Est. $9.31B

vs S&P Since Q3 25

-2.3%

TRAILING MARKET

SBUX +11.2% vs S&P +13.6%

Market Reaction

Did SBUX Beat Earnings? Q3 2025 Results

Starbucks delivered a split verdict in its fiscal third quarter of 2025, posting revenue that edged past Wall Street's expectations while earnings fell well short, underscoring how much heavy lifting the company's turnaround still requires. Revenue r… Read more Starbucks delivered a split verdict in its fiscal third quarter of 2025, posting revenue that edged past Wall Street's expectations while earnings fell well short, underscoring how much heavy lifting the company's turnaround still requires. Revenue rose 3.8% year-over-year to $9.46 billion, clearing the $9.31 billion consensus by 1.58%, but non-GAAP EPS of $0.50 missed the $0.65 estimate by 22.56%, tumbling 46% from the prior-year period. The sharpest culprit was a combination of one-time investments, including a three-day Leadership Experience conference for more than 14,000 coffeehouse managers, and a discrete tax item that together shaved roughly $0.11 from earnings, pushing the effective tax rate to 31.8% from 24.8% a year ago. Global comparable store sales declined 2%, with North America comps falling the same amount, though China offered a relative bright spot with a 2% comp gain. CEO Brian Niccol declared the turnaround is "ahead of schedule" and promised a wave of product innovation in fiscal 2026, a pledge that analysts are watching closely given the ongoing tension between ambitious reinvention and the need for faster, more consistent service.

Key Takeaways

  • Net new company-operated store growth of 5% in North America and 7% internationally over the past 12 months
  • Global comparable store sales declined 2%, driven by 2% decline in comparable transactions partially offset by 1% increase in average ticket
  • China comparable store sales increased 2% driven by 6% increase in comparable transactions
  • Channel Development revenue increased 10% driven by Global Coffee Alliance growth
  • Operating margin contracted 680 bps due to deleverage, labor investments, Leadership Experience 2025, and inflation
  • Effective tax rate increased to 31.8% from 24.8% driven by discrete impact of changes in indefinite reinvestment assertions (~850 bps impact)
  • Three consecutive quarters of improving U.S. transaction comp
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SBUX YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

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SBUX Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q2 26
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SBUX Revenue by Geography

With YoY comparisons, source: SEC Filings

Q2 25 Q2 26

“We've fixed a lot and done the hard work on the hard things to build a strong operating foundation, and based on my experience of turnarounds, we are ahead of schedule.”

— Brian Niccol, Q3 2025 Earnings Press Release