Starbucks has raised its full-year comparable profit and same-store sales growth targets, driven by a notable recovery in customer traffic for the second consecutive quarter.
In a video released alongside the company's Q2 fiscal 2026 earnings report, CEO Brian Nicol stated, "This quarter marks a milestone moment for Starbucks, signaling a definitive turning point in our brand transformation."
For fiscal 2026, Starbucks increased its global and U.S. same-store sales growth forecast from a previous 3% to at least 5%. The company also raised its adjusted earnings per share guidance from $2.15–$2.40 to $2.25–$2.45.
Following the earnings release, Starbucks shares surged approximately 5% in after-hours trading.
According to analyst surveys compiled by the London Stock Exchange Group, Starbucks' key Q2 results through March 29 compared with Wall Street expectations as follows:
Earnings per share: Adjusted 50 cents, versus expectations of 43 cents. Revenue: $9.53 billion, exceeding the projected $9.16 billion.
The earnings report showed Starbucks' Q2 net income attributable to the company was $510.9 million, or $0.45 per share. This compares with net income of $384.2 million, or $0.34 per share, in the same period last year. Excluding restructuring costs, asset impairments, and other one-time items, the company reported earnings per share of $0.50, significantly surpassing market expectations.
Corporate net sales increased approximately 9% year-over-year to $9.53 billion.
Global same-store sales for Starbucks rose 6.2%—based only on locations open at least one year—driven primarily by increased customer visit frequency. Wall Street had anticipated same-store sales growth of just 4%. Nicol noted during the earnings call that same-store sales maintained steady growth momentum into April.
North America, as Starbucks' core domestic market, contributed significantly to same-store sales growth this quarter: U.S. same-store sales increased 7.1%, with store traffic climbing 4.3%. Nicol remarked, "We haven't seen transaction performance this strong in years."
In contrast, international operations grew at a more moderate pace, with same-store sales outside the U.S. rising only 2.6%.
Comments