Starbucks Returns to Simultaneous Revenue and EPS Growth in Q2 FY2026

Transcript intelligence

What changed

Q2 marked a meaningful inflection from Q1. Revenue growth accelerated from 5% to roughly 9% YoY, global comps improved from 4% to 6%, and operating margin expanded to 9.4%. EPS grew 22% to $0.50, beating the consensus estimate of $0.43 by 17.6%. The Boyu Capital China JV transaction closed, converting Starbucks China to a JV/licensing model. A new customizable energy refresher platform launched, and a scheduled ordering feature was introduced in the mobile app. International markets, including China, Japan, and South Korea, posted positive comps after nine quarters of decline. Starbucks Rewards reached a record 35.6 million active members, up from 35.5 million in Q1.

Guidance delta

Management raised FY2026 guidance. Global comparable store sales target moved to 5% or higher, up from 3%+. EPS range lifted to $2.25 to $2.45, up from $2.15 to $2.40. The $2 billion multi-year cost-savings program remains on track with focus on product, distribution, OpEx, and G&A.

Key takeaways

• First simultaneous revenue and earnings growth in over two years: revenue $9.5B (up ~9% YoY) and EPS $0.50 (up 22%).
• Global comparable store sales rose 6%, with international markets returning to positive comps after nine quarters of decline.
• Starbucks Rewards hit a record 35.6M active members, fueling higher visit frequency and delivery growth of 30% YTD.
• China JV with Boyu Capital closed: $3.1B cash proceeds, valuation over $13B, shifting to a JV/licensing model.
• Guidance raised: global comps target moved to 5%+ and FY2026 EPS range lifted to $2.25 to $2.45.
• Stock surged 8.5% on the report but drifted down roughly 4.5% in subsequent sessions as investors weighed sustainability.

Management priorities

• Complete Green Apron Service rollout to over 1,000 stores by year-end, targeting 8,000+ stores eventually.
• Expand China footprint to over 1,500 county-level cities over the next three years under the JV model.
• Execute the $2 billion multi-year cost-savings program across product, distribution, OpEx, and G&A.
• Roll out scheduled order-pickup feature across the U.S. mobile app to improve service times.
• Launch summer menu with new refresher flavors and merchandise.
• Introduce new Mastrena machine to accelerate espresso preparation speed.