Starbucks raises forecast after sales, profit beat and service turnaround gains

Starbucks raised its full-year forecast after a quarter that delivered both sales growth and a profit beat, giving investors fresh evidence that Brian Niccol’s service reset is starting to change the business. Shares rose about 5% in extended trading as the coffee chain said faster service and more staffing were bringing customers back, while Niccol declared, “Our second quarter marked the turn in our turnaround as our Back to Starbucks plan drove both top and bottom line growth.”

The fiscal second quarter ended March 29, 2026, and it was Starbucks’ first quarter of growth in both revenue and earnings in more than two years. Global comparable store sales climbed 6.2%, driven by a 3.8% increase in comparable transactions and a 2.3% rise in average ticket. Consolidated net revenues increased 9% to $9.5 billion, and adjusted earnings per share came in at 50 cents, above Wall Street expectations.

Starbucks also lifted its fiscal 2026 outlook. The company now expects adjusted earnings per share of $2.25 to $2.45, up from a prior range of $2.15 to $2.40, and it forecast global same-store sales growth of about 5% or more. For investors, the bigger question is not whether Starbucks can post one strong quarter, but whether the gains can hold once the company has to absorb the higher labor costs tied to the turnaround.

North America showed the clearest improvement. Comparable store sales rose 7.1% in the region, but operating margin slipped to 9.9% from 11.6% a year earlier as Starbucks spent more on staffing and service changes. China, its second-largest market, remained much softer, with comparable store sales up just 0.5%, underscoring how uneven the rebound still is across the global footprint.

At quarter-end, Starbucks had 41,129 stores worldwide, including 16,944 in the U.S. and 7,991 in China. The company said about 80% of stores were meeting its 4-4-12 service targets, meaning four minutes in the café, four in the drive-through and under 12 minutes for mobile pickup. Those targets sit at the center of the Green Apron Service initiative, which combines staffing, scheduling, technology and leadership changes to make the customer experience more predictable.

Niccol, who joined Starbucks in September 2024, has made operational consistency the core of the reset. He said, “The shine is back on Starbucks around the world.” Whether that shine becomes a durable turnaround will depend on whether traffic keeps improving without eroding margins, especially in a consumer market where price alone is no longer enough to carry the brand.