Starbucks Tops EPS Estimates at $0.80 Adjusted, Revenue Falls Short at $9.1 Billion

Starbucks (Nasdaq: SBUX) reported fiscal fourth-quarter revenue of $9.1 billion, below the $9.23 billion analysts expected, and adjusted earnings per share of $0.80 against the $0.71 consensus estimate, in an 8-K filed Thursday, Oct. 29, 2026. Revenue fell 4% from a year earlier, primarily because of the conversion of Starbucks China retail operations to a licensed joint venture model. GAAP EPS was $0.59, up 392% from a year earlier.

Margins and comparable sales

Global comparable coffeehouse sales rose 7.2%, driven by a 5.2% increase in average ticket and a 1.8% increase in comparable transactions. Non-GAAP operating margin widened 450 basis points to 14.0%. GAAP operating margin was 10.8%, up 790 basis points.

North America comparable sales rose 7.9%, and segment operating margin reached 12.3% versus 4.5% a year earlier, which the company attributed mainly to lower restructuring costs and sales leverage. International revenue fell 37% to $1.3 billion, reflecting the China conversion, while its operating margin rose to 19.7%.

Fiscal 2026 and guidance

For the full fiscal year, revenue rose 2% to $37.9 billion, slightly below the $38.01 billion analysts expected, while non-GAAP EPS of $2.72 compared with the $2.61 consensus estimate.

For fiscal 2027, the company guided to non-GAAP EPS of $3.15 to $3.25, against the $3.13 consensus estimate for that year. It expects consolidated net revenues to decline about 1%, including roughly $700 million from a 53rd week, and a non-GAAP operating margin of 13.5% to 14.0%. It also plans about 1,200 net new coffeehouses.

Starbucks closed about 250 company-operated North America coffeehouses in September. Its board declared a dividend of $0.63 per share, payable Nov. 27, 2026, and the company plans to resume share repurchases in fiscal 2027.