Starbucks Q3 fiscal 2026 profit surges 87%, raises outlook as shares jump

Starbucks reported a strong fiscal third quarter as its turnaround under Brian Niccol continued to gain traction, with adjusted earnings per share of $0.85, global comparable-store sales growth of 7.9% and a higher full-year outlook. Revenue slipped 1% to $9.3 billion, reflecting the conversion of the China business to a joint venture structure rather than weaker demand, while non-GAAP operating margin expanded to 14.4% from 10.1% on sales leverage, lower inflation and a one-time tariff refund. The company said global comparable-store sales were driven by a 4.2% rise in comparable transactions and a 3.5% increase in average ticket, with U.S. comparable-store sales up 7.9% and international markets up 5.7%. Starbucks opened 175 net new stores in the quarter, ending the period with 41,304 locations worldwide. Management raised its adjusted earnings forecast to $2.55 to $2.65 per share from $2.25 to $2.45 and lifted its global comparable-sales growth outlook to about 6%, while projecting U.S. comparable sales of at least 6.5% and an adjusted operating margin above 11% in the fiscal fourth quarter. Niccol said the pumpkin spice latte will remain a seasonal product despite its popularity, arguing that it serves as a defining drink of the fall period and helps launch the autumn-to-holiday selling season. Starbucks is also trying to unlock more growth after the morning rush by expanding food and beverage options later in the day. The company said sales after 11:00 a.m. account for $11 billion, and it has introduced new Refreshers energy drinks, is testing wraps and plans to launch sparkling beverages. More than 1,000 North American stores have been remodeled, with another 500 planned by fiscal year-end. Shares rose roughly 5% in after-hours trading after the results, bringing the stock back near its 52-week high of $109.23.