Starbucks raised its fiscal 2026 forecast after stronger-than-expected quarterly sales and a second straight quarter of traffic growth.
Starbucks raised its full-year outlook Tuesday after reporting stronger-than-expected quarterly sales and a second straight quarter of traffic growth, signs that its turnaround effort is gaining traction.
The coffee chain said it now expects global and U.S. same-store sales to rise by at least 5% in fiscal 2026, up from its previous forecast of 3% growth. Starbucks also lifted its adjusted earnings forecast to a range of $2.25 to $2.45 per share, compared with its earlier projection of $2.15 to $2.40.
The improved forecast stands out at a time when higher gas prices have raised concerns for consumer-facing companies. CEO Brian Niccol said those prices have not yet changed Starbucks customers’ behavior, though he described the company’s guidance increase as cautious compared with its latest quarterly outperformance.
“This quarter marked a milestone for Starbucks – and the turn in our turnaround,” Niccol said in a video released with the company’s fiscal second-quarter results.
For the period ended March 29, Starbucks reported adjusted earnings of 50 cents per share, above the 43 cents analysts expected, according to LSEG. Revenue rose roughly 9% to $9.53 billion, topping the $9.16 billion analysts had projected.
Net income attributable to Starbucks was $510.9 million, or 45 cents per share, up from $384.2 million, or 34 cents per share, a year earlier. Excluding restructuring and impairment costs and other items, the company earned 50 cents per share.
Global same-store sales, a measure of cafes open at least a year, rose 6.2%, above the 4% growth expected by Wall Street, according to StreetAccount. The gain was helped by more customer visits, and Niccol said the company had seen similar same-store sales growth into April.
North America led the results. U.S. same-store sales climbed 7.1%, including a 4.3% increase in transactions, marking the second consecutive quarter of traffic growth for Starbucks’ U.S. cafes. Under Niccol, the company has reduced discounts while working to improve cafe operations, add new menu items and bring seating back to locations.
Growth outside the U.S. was slower. International same-store sales rose 2.6%, while China, Starbucks’ second-largest market, posted same-store sales growth of 0.5%. The company has used more discounts in China to lift visits, resulting in higher traffic but lower average spending.
Starbucks shares rose about 5% in extended trading after the results. The company said it will no longer report China’s standalone revenue and same-store sales because the business is now part of its licensed portfolio following Boyu Capital’s majority stake deal in the region.
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