Starbucks reported third-quarter fiscal 2026 non-GAAP earnings of $0.85 per share, beating the consensus estimate of $0.66 by nearly 29%. Revenue dipped slightly to $9.32 billion due to the China retail divestiture to a Boyu Capital joint venture, but global comparable sales surged 7.9%, North America comps rose 8.1%, and operating margin expanded 430 basis points to 14.4%. CEO Brian Niccol called the results "the turn in our turnaround," crediting his "Back to Starbucks" plan focused on baristas, throughput, and in-store experience. A $10,000 investment in Starbucks at the 2011 rebrand has grown to $82,271, nearly doubling the S&P 500's return over the same period. Shares trade at 35 times forward earnings with a consensus price target of $111.74, leaving limited cushion if operational improvements falter.
Starbucks CorporationEPS beat and margin expansion signal successful turnaround.
