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    What Starbucks (SBUX)'s Q3 Beat And Higher Earnings Guidance Means For Shareholders

    Simply Wall St·07/30/2026 11:10:37
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    • In its fiscal third quarter ended June 28, 2026, Starbucks reported revenue of US$9,322.7 million, net income of US$1,045.3 million, and diluted EPS of US$0.91, and also raised its full-year earnings outlook.
    • The combination of higher profitability, a 7.9% rise in global comparable sales, and an upgraded earnings guidance suggests Starbucks’ turnaround efforts are gaining traction operationally.
    • Now we’ll examine how Starbucks’ stronger margins and higher full-year earnings guidance influence the company’s existing turnaround-focused investment narrative.

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    Starbucks Investment Narrative Recap

    To own Starbucks today, you need to believe its “Back to Starbucks” turnaround can translate healthier margins and steadier comparable sales into durable earnings, despite cost and macro pressures. The latest quarter’s 7.9% global comp growth, 430-basis-point operating margin expansion, and higher full-year EPS outlook support that thesis and modestly ease near term worries about margin compression, while execution risk around store investments and labor costs still looks like the key issue to watch.

    The most relevant recent announcement is Starbucks’ raised full year 2026 guidance, now calling for flat to slightly higher net revenue and GAAP EPS of US$2.14 to US$2.24. For a turnaround story that previously faced margin contraction and softer comps, this updated outlook ties the short term catalyst directly to improving profitability, even as investors still have to weigh store build costs, union related labor pressures, and how quickly the Back to Starbucks initiatives can scale.

    But before you lean too heavily on this improved guidance, you should be aware that...

    Read the full narrative on Starbucks (it's free!)

    Starbucks' narrative projects $42.0 billion revenue and $4.4 billion earnings by 2029. This requires 3.0% yearly revenue growth and about a $2.9 billion earnings increase from $1.5 billion today.

    Uncover how Starbucks' forecasts yield a $106.25 fair value, in line with its current price.

    Exploring Other Perspectives

    SBUX 1-Year Stock Price Chart
    SBUX 1-Year Stock Price Chart

    Some bullish analysts were already expecting Starbucks to lift earnings to about US$5.6 billion by 2029, so this margin driven beat could either reinforce that optimism or prompt a rethink of how realistic those growth and cost assumptions really are.

    Explore 11 other fair value estimates on Starbucks - why the stock might be worth as much as 26% more than the current price!

    Decide For Yourself

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.