SBUX US S&P 500NASDAQ-100Russell 1000 Earnings call
Starbucks (SBUX) · Q2 2026 results and valuation
Share price: $109.89 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026 · published 29 Jul 2026 and 28 Apr 2026
Net income up 104.6% on the previous quarter, guidance raised. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+104.6%
Net income vs Q1 2026
Guidance raised
Net income 1.05B vs 510.9M
Revenue −2.2%
Against the same quarter last year (Q2 2025) it is +87.2%, so it is not just seasonal.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: very upbeat, in line with the script.
Similar to last call.
3 · What stood out
Figure
Consolidated net revenues reached $9.3 billion in Q3, driven by a 7.9% global comparable store growth rate.
Valuation
Is Starbucks undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-09-28), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 4.9% growth a year (3-year revenue growth), the model's fair value is $26.04 a share — the stock trades 322% above it. Today's price assumes 21.6% growth a year.
Current price
$109.89
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+21.6% for 10 yrs
Fair value / share
$26.04
Buy below
$19.53
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
-
Key theme
This August marks 1 year since Starbucks launched Green Apron Service and has become the operating foundation of Back to Starbucks.
Source quote
“This August marks 1 year since we launched Green Apron Service and has become the operating foundation of Back to Starbucks. First, we continue to fine-tune our Coffee House operations to sustain momentum and perform with more consistency at scale. We gave ownership and accountability back to Coffee House leaders.”
-
Key theme
Starbucks' mission was built on a simple belief, an extraordinary cup of coffee, human connection and a great customer experience…
Source quote
“Starbucks' mission was built on a simple belief, an extraordinary cup of coffee, human connection and a great customer experience... It's clear proof that our Back to Starbucks plan is working. Our strong third quarter proves this enduring truth delivers enduring results.”
-
Guidance ↑
Starbucks raised its EPS guidance to between $2.55 and $2.65.
Source quote
“Putting this all together, we are raising our EPS guidance at both ends of the range to between $2.55 and $2.65.”
-
Guidance
SBUX expects full fiscal year 2026 consolidated net revenues to be flat to slightly higher year-over-year as the company accounts for the impact of its new China initiatives.
Source quote
“We expect full fiscal year 2026 consolidated net revenues to be flat to slightly higher year-over-year as we continue to account for the impact of our new China...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“As we expected, coffee remained a cost headwind in the quarter, but the impact was lower than the first 2 quarters of the fiscal year.”
“And if the answers aren't yes, then you know what, we're being honest with ourselves and saying we're going to address the problem now, and we'll build the right Starbucks...”
“And it is just one of those things where we either did really difficult remodels on stores or we potentially put the wrong store in the wrong place.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-28)
| Metric | Q2 2026period end 2026-06-28 | Q1 2026period end 2026-03-29 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 9.32B | 9.53B | −2.2% | 9.46B | −1.4% |
| Operating income | 980.4M | 828.1M | +18.4% | 935.6M | +4.8% |
| Net income | 1.05B | 510.9M | +104.6% | 558.3M | +87.2% |
| EPS | 0.91 | 0.45 | +102.2% | 0.49 | +85.7% |
| P/E today 54.3 | 60.1 | 66.3 | −6.2 | 39.9 | +20.2 |
Topics
Most discussed now
- Starbucks continues to improve the third place experience with coffee house uplifts, adding back warmth, texture and great seats...
- It's in the aroma of fresh ground coffee that greets you at the door, the symphony of sounds of a...
- Consolidated net revenues were $9.3 billion, down 1% from the prior year, largely driven by the transition of the China...
- Starbucks' North America segment revenues were $7.4 billion with comparable store sales up 8.1%.
- Average ticket increases were led by sustained strength in Starbucks' delivery business as well as innovation-led modifications and attach.
Faded since Q1 2026
- Dropped Any such statements should be considered in conjunction with cautionary statements in Starbucks' earnings release and the risk factors…
- Fading Global comps were a strong 6% driven by terrific performance across the business, especially in the U.S., and Starbucks' consolidated...
- Fading Positive comp trends have continued through April, and this gives it the confidence to take up Starbucks' fiscal 2026 guidance...
- Fading Starbucks' focus now is on sustaining its momentum and making its results repeatable and durable, all while delivering a healthy...
Latest announcements
Official filings, newest first.
- Restructuring costs; Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Other events · SEC 8-K
- Restructuring costs · SEC 8-K
- Results of operations · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Shareholder vote results · SEC 8-K