Starbucks (SBUX) Q1 2026 earnings summary

Executive summary

• Q1 FY26 delivered 4% global comparable store sales growth and consolidated net revenue growth of 5–6% to $9.9B, driven by increased transactions and the Back to Starbucks turnaround plan.

• North America revenue rose 3% to $7.3B, with U.S. comps up 4% and transactions up 3%, marking the first year-over-year transaction growth in eight quarters.

• International revenue grew 10% to $2.1B, with China comps up 7% and strong performance in Japan and the U.K.

• Starbucks Rewards active members reached a record 35.5M, with both rewards and non-rewards transactions growing for the first time since Q2 FY22.

• Announced joint venture with Boyu Capital for China retail operations, converting company-operated stores to licensed stores, with Starbucks retaining a 40% stake.

Financial highlights

• Q1 consolidated revenue: $9.9B, up 5–6% year-over-year.

• Q1 GAAP operating margin: 9.0% (down 290 bps); non-GAAP: 10.1% (down 180 bps), mainly due to labor investments and inflation.

• Q1 GAAP EPS: $0.26 (down 62%); non-GAAP EPS: $0.56 (down 19%).

• Net earnings attributable to shareholders fell to $293.3M from $780.8M year-over-year.

• Channel development segment revenue up 19–20% year-over-year, led by ready-to-drink and Global Coffee Alliance.

Outlook and guidance

• FY26 guidance: ≥3% global and U.S. comp sales growth, consolidated net revenue growth at a similar rate, and non-GAAP EPS of $2.15–$2.40.

• Expect 600–650 net new coffeehouses globally, with 150–175 net new U.S. company-operated stores and 450–500 net new international stores (about half in China).

• Non-GAAP consolidated operating margin expected to slightly improve year-over-year, with improvements in the back half.

• China JV transaction expected to close in spring, with a $0.02–$0.03 dilutive effect on EPS.

• The restructuring plan is expected to complete within fiscal 2026, with an additional $140M in related costs anticipated.