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Earnings Score 62 Bullish

Starbucks Signals Turnaround with Raised FY2026 Guidance and China Expansion

Apr 29, 2026 02:22 UTC
SBUX
Medium term

Starbucks has increased its full-year 2026 outlook following a return to top and bottom-line growth. The revised targets coincide with the closure of a strategic deal in the critical Chinese market.

  • Global comparable sales guidance increased to 5%+
  • EPS forecast updated to $2.25-$2.45 for FY2026
  • Achieved first top and bottom-line growth in over 24 months
  • Strategic closure of China-based deal
  • CEO Brian Niccol confirms business milestone

Starbucks (SBUX) has raised its fiscal year 2026 guidance, marking a pivotal shift in the company's financial trajectory. The coffee giant now expects global comparable store sales to grow by more than 5%, with earnings per share (EPS) projected to fall between $2.25 and $2.45. This optimistic outlook follows the closure of a strategic deal in China, a region that remains central to the company's long-term expansion goals. The move suggests a stabilization of operations in the East and a more aggressive approach to capturing market share amid competitive pressures. During the Q2 fiscal 2026 earnings call, Chairman and CEO Brian Niccol described the quarter as a milestone for the business. He noted that the company delivered growth on both the top and bottom lines for the first time in more than two years, ending a prolonged period of stagnation. Market analysts are likely to view the guidance raise as a validation of the current leadership's strategic pivot. The return to growth suggests that Starbucks is successfully navigating consumer headwinds and operational inefficiencies that had previously hampered its performance.

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