A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
In Q3 FY2026, Starbucks reported net revenues of $9.32B (down 1.4% YoY) due to deconsolidating its China retail operations into a joint venture, while net income rose 87.2% YoY to $1.05B boosted by a $536.3M divestiture gain.
Revenue
$9.32B
-1.41% YoY
EPS (Diluted)
$0.91
+85.71% YoY
Operating Income
$980.4M
+4.79% YoY
Starbucks (SBUX) reported Q3 FY2026 revenue of $9.32B, down 1.4% year over year. The company posted net income of $1.05B, up 87.2% from a year earlier, with diluted EPS of $0.91. Operating income was $980.4M, up 4.8% year over year. SBUX's fiscal Q3 FY2026 corresponds to calendar Q2 2026.
Starbucks Q3 FY2026 revenues fell 1.4% to $9.32B due to the China JV deconsolidation, but net income jumped 87.2% to $1.05B boosted by a $536.3M gain on the transaction.
Last 4 quarters: 2 beats, 2 misses
Adjusted (non-GAAP) EPS of $0.85 versus the $0.67 analyst consensus — a +26.1% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.91.
Starbucks completed the sale of a 60% stake in its China retail operations to funds managed by Boyu Capital while retaining a 40% equity stake, recognizing a pre-tax net gain of $536.3M and transitioning to recording royalty and equity income.
Source: 10-Q Item 2 MD&A, p.38-39
Global comparable store sales grew 7.9% YoY, driven by a 7.9% increase in the U.S. market which comprised a 4.2% increase in transactions and a 3.6% increase in average ticket from higher delivery sales, food attach, and beverage modifications.
Source: 10-Q Item 2 MD&A, p.38
Consolidated operating margin expanded 60 bps YoY to 10.5%, driven by sales leverage across stores and lower inflation paired with tariff refunds, offset by higher restructuring expenses and partner labor investments.
Source: 10-Q Item 2 MD&A, p.38
Starbucks incurred $302.6M in restructuring and impairment costs during Q3 FY2026, primarily related to asset impairments at Starbucks Reserve and Roastery locations and partner severance from global support organization transformations.
Source: 10-Q Item 2 MD&A, p.39, 41
Starbucks reported stockholders' equity of -$7.67B due to historic share repurchases, which limits financial flexibility and exposes the company to risks if cash generation declines.
Source: 10-Q Balance Sheet (XBRL)
With current liabilities of $9.92B exceeding current assets of $7.53B (current ratio of 0.76), Starbucks relies on uninterrupted operating cash flow to meet short-term obligations.
Source: 10-Q Balance Sheet (XBRL)
The conversion of China company-operated stores to a joint venture reduces direct revenue recognition by hundreds of millions quarterly, increasing dependence on royalty revenues and joint venture performance.
Source: 10-Q Income Statement (XBRL)
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
Starbucks (SBUX) is next expected to report on , when the following quarter's results and any updated outlook will be available.
See the SBUX earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $9.32B | $9.46B | -1.41% |
Operating Income | $980.4M | $935.6M | +4.79% |
Net Income | $1.05B | $558.3M | +87.23% |
EPS (Basic) | $0.92 | $0.49 | +87.76% |
EPS (Diluted) | $0.91 | $0.49 | +85.71% |
Starbucks reported net income of $1.05B ($0.91 diluted EPS), up 85.7% YoY, significantly benefited by a $536.3M gain from its China retail transaction. Operating income increased 4.8% YoY to $980.4M despite net revenue declining 1.4% to $9.32B.
Net revenues fell 1.4% YoY to $9.32B primarily because Starbucks deconsolidated its China company-operated stores into a 40/60 joint venture structure, which reduced company-operated store revenue by $776M. This was partially offset by a 7.9% increase in global comparable store sales.
Key takeaways include strong 7.9% U.S. comparable store sales growth, 60 bps operating margin expansion to 10.52%, and the successful closing of the China JV deal, which allowed Starbucks to reduce long-term debt by 23.3% YoY to $13.28B.
Starbucks (SBUX) is next expected to report earnings on Oct 27, 2026. The date comes from the analyst earnings calendar and can shift until the company confirms it.
Expected release date, analyst estimates & what to watch
Starbucks reported strong financial performance in Q2 FY2026 with significant growth in revenue and net income, despite challenges in cash flow and equity position.
Starbucks Q1 FY2026 saw revenue grow 5.5% YoY to $9.9B, but net income collapsed 62.4% to $293.3M as operating margin compressed sharply to 9.0%, reflecting significant cost pressures and restructuring headwinds under the company's turnaround effort.
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