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Starbucks fiscal Q3 margins expand as global comps return to growth
Starbucks reported fiscal Q3 revenue of $9.32 billion, down 1.4% year over year, while operating margins improved by 430 basis points and adjusted EPS rose 70%.
Starbucks reported fiscal Q3 results showing improving margins and a rebound in store performance under CEO Brian Niccol’s Back to Starbucks strategy, according to MarketBeat Ratings.
The company said revenue declined 1.4% to $9.32 billion, but the figure beat consensus by more than 200 basis points and drove better-than-expected margins. Starbucks reported improved operating margins by 430 basis points, adjusted for one-offs and repositioning efforts, and a 70% increase in adjusted earnings per share, despite the top-line decline.
Starbucks attributed internal strength to new store growth and higher comps. It added 175 stores and posted a 7.9% global comp-store increase, with global comps supported by a 4.2% gain in transactions and a 3.5% increase in ticket average.
By geography, U.S. comps rose 8.1% and International comparable sales increased 5.7%. Looking ahead, Starbucks expects comp-store strength to continue and raised guidance to target full-year global comps in the 6% range, with capital returns in 2026 primarily driven by its roughly 2.3% dividend yield as of late July.