Starbucks Expected to Post Higher Profit as Sales Rebound Continues - Earnings Preview

By Anvee Bhutani

Starbucks is set to report its third-quarter earnings after markets close on Wednesday. Here is what to know.

REVENUE: The global coffee chain is expected to report $9.18 billion in sales, compared with $9.46 billion in the prior-year quarter, according to FactSet.

NET PROFIT: The Seattle company is expected to post a profit of $714.1 million, compared with a profit of $558.3 million the year before, according to FactSet.

ADJUSTED EARNINGS PER SHARE: Adjusted earnings are expected to come in at 66 cents a share, compared with 50 cents a share the prior year.

Shares of Starbucks were recently down 0.6% at $103.07, having gained more than 22% this year.

WHAT TO WATCH

--Analysts will be watching whether Starbucks can build on last quarter's stronger-than-expected momentum, when global comparable sales rose 6.2% and U.S. comparable sales increased 7.1%. Deutsche Bank expects another solid quarter, driven by improved store operations, product innovation and more effective marketing.

--Investors are waiting to see whether improving sales are beginning to translate into better profitability after Starbucks spent heavily on labor, store upgrades and barista training. UBS has cautioned that recent margin improvement was aided by temporary factors, including lower store-opening costs and accounting related to the China business.

--Management's full-year guidance and comments on the pace of the turnaround under Chief Executive Brian Niccol will be closely scrutinized. Starbucks raised its fiscal-year outlook after last quarter's results, saying sales momentum continued into April. Deutsche Bank, which rates the stock "Buy" with a $120 price target, said it sees potential for additional earnings beats and higher guidance as Niccol's turnaround gains traction.

Write to Anvee Bhutani at anvee.bhutani@wsj.com

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July 28, 2026 15:50 ET (19:50 GMT)