Starbucks

SBUX Q1 2026 Earnings

Reported Jan 28, 2026 at 7:46 AM ET · SEC Source

Q1 26 EPS

$0.56

MISS 4.58%

Est. $0.59

Q1 26 Revenue

$9.92B

BEAT +2.68%

Est. $9.66B

vs S&P Since Q1 26

+5.3%

BEATING MARKET

SBUX +9.1% vs S&P +3.8%

Market Reaction

Did SBUX Beat Earnings? Q1 2026 Results

Starbucks posted a mixed first quarter for fiscal 2026, delivering a revenue beat alongside a modest earnings miss as the company's turnaround under CEO Brian Niccol showed early but costly signs of traction. Non-GAAP EPS came in at $0.56, falling sh… Read more Starbucks posted a mixed first quarter for fiscal 2026, delivering a revenue beat alongside a modest earnings miss as the company's turnaround under CEO Brian Niccol showed early but costly signs of traction. Non-GAAP EPS came in at $0.56, falling short of the $0.59 consensus by 4.58%, while revenue of $9.92 billion exceeded estimates by 2.68% and grew 5.5% year over year. The headline earnings shortfall reflected deliberate margin pressure, with GAAP operating margin contracting 290 basis points to 9.0% as labor investments tied to the "Back to Starbucks" strategy collided with elevated coffee costs and tariff headwinds. The more significant story, however, was the operational inflection: global comparable store sales grew 4%, including the first positive U.S. Comparable transaction growth in eight quarters, a milestone Niccol called ahead of schedule. Wolfe Research recently upgraded the stock to outperform with a $112 price target, reflecting growing confidence in the recovery. Looking ahead, Starbucks guided for non-GAAP EPS of $2.15 to $2.40 in fiscal 2026, with global comparable store sales growth of 3% or greater.

Key Takeaways

  • Global comparable store sales increased 4%, driven by 3% transaction growth and 1% average ticket increase
  • U.S. comparable transaction growth turned positive for the first time in eight quarters
  • China comparable store sales increased 7%, driven by 5% transaction growth
  • Channel Development revenue surged 20% driven by Global Coffee Alliance and ready-to-drink business
  • 'Back to Starbucks' strategy gaining traction ahead of schedule
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SBUX YoY Financials

Q1 2026 vs Q1 2025, 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

“Our Q1 results demonstrate our 'Back to Starbucks' strategy is working and we believe we're ahead of schedule.”

— Brian Niccol, Q1 2026 Earnings Press Release