Starbucks Reports Q1 FY2026 Financial Highlights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Businesswire
- Sales Growth: In Q1 FY2026, Starbucks' North America segment reported net revenues of $7.28 billion, a 3% increase year-over-year, primarily driven by a 4% rise in comparable store sales, indicating early success of the 'Back to Starbucks' strategy.
- Declining Operating Income: Despite revenue growth in North America, operating income fell to $867 million, down 27% year-over-year, reflecting the impact of labor investments and inflationary pressures, with operating margin contracting from 16.7% to 11.9%.
- International Market Performance: The international segment saw a 10% increase in net revenues to $2.065 billion, driven by a 5% rise in comparable store sales and new store openings, with operating income increasing 19% to $282.7 million, showcasing recovery potential in global markets.
- Strong Channel Development: The Channel Development segment experienced a 20% increase in net revenues to $522.7 million, primarily due to revenue growth in the Global Coffee Alliance and ready-to-drink products, although operating margin contracted, highlighting competitive challenges in the market.
Analyst Views on SBUX
Wall Street analysts forecast SBUX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SBUX is 96.12 USD with a low forecast of 59.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
12 Buy
7 Hold
2 Sell
Moderate Buy
Current: 95.720
Low
59.00
Averages
96.12
High
115.00
Current: 95.720
Low
59.00
Averages
96.12
High
115.00
About SBUX
Starbucks Corporations is a roaster, marketer, and retailer of specialty coffee globally. Its North America segment includes the United States and Canada. Its International segment includes China, Japan, Asia Pacific, Europe, Middle East and Africa, Latin America, and the Caribbean. Its North America and International segments include both Company-operated and licensed stores. The Channel Development segment includes roasted whole bean and ground coffees, Starbucks-branded single-serve products, a variety of ready-to-drink beverages, such as Frappuccino and Starbucks Doubleshot, foodservice products, and other branded products sold outside the Company-operated and licensed stores. A large portion of its Channel Development business operates under a licensed model of the Global Coffee Alliance with Nestle, while its global ready-to-drink businesses operate under collaborative relationships with PepsiCo, Inc., Tingyi-Ashi Beverages Holding Co., Ltd., Arla Foods amba, Nestle, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
