Starbucks Shares Up Nearly 14% in 2026 as Analysts Upgrade Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 23 2026
0mins
Should l Buy SBUX?
Source: stocktwits
- Stock Performance: Starbucks shares have surged nearly 14% so far in 2026 and rose nearly 1% in after-hours trading on Thursday, indicating the company is on track for its strongest start to a year in five years, reflecting optimistic market expectations for its future performance.
- Analyst Rating Upgrade: William Blair upgraded Starbucks from ‘Market Perform’ to ‘Outperform’, anticipating the company will achieve its first domestic comparable sales gain in two years in its upcoming earnings report, which will lay the groundwork for future positive growth.
- Earnings Expectations: Starbucks is expected to report its first-quarter results on January 28, with analysts estimating a revenue increase of about 2.5% to $9.63 billion year-over-year, although earnings per share are projected to decline from $0.69 to $0.59, highlighting challenges the company faces.
- Market Sentiment Shift: Despite a 3% decline in stock price over the past 12 months, retail investor sentiment has turned bearish compared to a month ago, with message volume on Stocktwits surging 129% in the past 24 hours, indicating heightened market attention on Starbucks' future performance.
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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: 96.070
Low
59.00
Averages
96.12
High
115.00
Current: 96.070
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.
Starbucks Q4 Earnings Report Boosts Stock Price
- Stock Price Surge: Starbucks (SBUX) shares have risen 13.7% in 2026, reflecting Wall Street's positive reaction to its Q4 2025 earnings report, although the stock is still down 24% from its 2021 peak.
- Revenue Growth: The company reported a 5% increase in global revenue and same-store sales growth, along with the opening of 128 new coffeehouses, indicating potential recovery in the market, yet net income plummeted to $293.3 million, a 75% drop from historical highs.
- China Market Transformation: Starbucks has entered a joint venture with Boyu Capital for its China locations, with Boyu taking up to a 60% stake, which is expected to save Starbucks $39 million monthly in operating costs, but the impact on brand management remains uncertain.
- Membership Growth: Despite the significant drop in net income, Starbucks has increased its active membership to 35.5 million, up from 24 million at the 2021 peak, indicating improved brand loyalty, yet a high P/E ratio of 78 raises concerns for investors.
See More
Starbucks Shares Rally but Remain Down from Peak
- Earnings Recovery Signs: Starbucks shares have risen 13.7% in 2026, buoyed by a favorable reaction to its Q4 2025 earnings report, which highlighted same-store sales growth and a 5% increase in global revenue, although the stock remains down 24% from its 2021 peak.
- China Market Transformation: The agreement with Boyu Capital to convert its China stores into a joint venture, with Boyu taking up to a 60% stake, while saving Starbucks $39 million monthly in operating costs, raises concerns about brand management and market prospects.
- Membership Growth: Despite net income plummeting to $293.3 million, a 75% drop from historical highs, Starbucks' active membership has surged from 24 million to 35.5 million, indicating enhanced customer loyalty that could support future revenue growth.
- Valuation Risks: With a price-to-earnings ratio nearing 78, significantly higher than the S&P 500's 29.5, the market appears overly optimistic about Starbucks' turnaround prospects, prompting investors to carefully consider their positions in the stock.
See More
Missouri Judge Dismisses Starbucks Discrimination Lawsuit
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- Allegations Overview: The lawsuit accused Starbucks of linking executive pay to racial and gender hiring quotas and providing additional training and advancement opportunities to preferred groups, highlighting intense debates over corporate internal policies.
- Contextual Impact: The lawsuit stemmed from Starbucks' diversity policies implemented post-George Floyd's murder in 2020, aimed at addressing social unrest and improving corporate image, reflecting a shift in corporate social responsibility.
- Employee Scale: With over 200,000 employees in the U.S. and 360,000 globally, the lawsuit's outcome could significantly influence Starbucks' future policies on diversity and inclusion as well as its public image.
See More
Starbucks Shares Up 13.7% Year-to-Date: Is It a Buy?
- Strong Earnings Report: Starbucks reported a 5% increase in global revenue and growing same-store sales in its Q4 2025 earnings, alongside the opening of 128 new coffeehouses, indicating robust market demand, although overall performance still requires improvement.
- China Market Transformation: The agreement with Boyu Capital to convert its China locations into a joint venture, with Boyu taking up to a 60% stake, could save Starbucks $39 million monthly in operating costs, yet raises concerns about brand management and operational oversight.
- Significant Membership Growth: As of last quarter, Starbucks boasted 35.5 million active members, a substantial increase from 24 million at its peak in 2021, reflecting enhanced brand loyalty, despite a sharp decline in net income.
- Increased Valuation Risk: With a P/E ratio nearing 78, significantly above the S&P 500 average of 29.5, the market appears to have overly optimistic expectations for Starbucks' recovery, prompting investors to carefully consider their positions in the stock.
See More
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- Earnings Performance Analysis: Starbucks reported a 4% year-over-year increase in global and U.S. same-store sales, with net revenue up 6%, indicating a rebound in consumer traffic, although profits fell short of analyst expectations, suggesting that their strategic initiatives may be gaining traction.
- China Market Dynamics: The company saw a 7% increase in same-store sales in China, its second-largest market, indicating a recovery in this region, particularly as it shifts to a licensing model through a joint venture with Boyu Capital, aiming to enhance its competitive edge.
- Strategic Transformation and Investment: Starbucks plans to open 600 to 650 new cafes in fiscal 2026 while closing about 400 U.S. locations, reflecting significant business adjustments as it pursues long-term growth amidst ongoing market changes.
- Market Reaction and Investor Focus: While Starbucks shows signs of financial improvement, investors must remain cautious regarding the feasibility of its long-term growth plans, especially given the high valuation and increasing market competition.
See More
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- Performance Overview: Starbucks reported a 4% year-over-year increase in global and U.S. comparable store sales, indicating a rebound in consumer traffic, although profits fell short of analyst expectations with net revenue up approximately 6% year-over-year.
- China Market Dynamics: Same-store sales in China grew by 7%, marking a recovery in Starbucks' second-largest market after facing challenges, although the company is shifting to a joint venture with Boyu Capital to reduce direct investment risks.
- Strategic Transition: Starbucks is undergoing a strategic shift, planning to open 600-650 new cafes in fiscal 2026 while closing about 400 U.S. locations, demonstrating a focus on long-term growth at the expense of short-term profits.
- Investor Attention: Despite a 4% stock price increase following the earnings report, analysts remain cautious about Starbucks' future growth potential, suggesting the company needs to establish a more competitive long-term growth strategy while maintaining profitability.
See More
Starbucks Q4 Earnings Report Boosts Stock Price
- Stock Price Surge: Starbucks (SBUX) shares have risen 13.7% in 2026, reflecting Wall Street's positive reaction to its Q4 2025 earnings report, although the stock is still down 24% from its 2021 peak.
- Revenue Growth: The company reported a 5% increase in global revenue and same-store sales growth, along with the opening of 128 new coffeehouses, indicating potential recovery in the market, yet net income plummeted to $293.3 million, a 75% drop from historical highs.
- China Market Transformation: Starbucks has entered a joint venture with Boyu Capital for its China locations, with Boyu taking up to a 60% stake, which is expected to save Starbucks $39 million monthly in operating costs, but the impact on brand management remains uncertain.
- Membership Growth: Despite the significant drop in net income, Starbucks has increased its active membership to 35.5 million, up from 24 million at the 2021 peak, indicating improved brand loyalty, yet a high P/E ratio of 78 raises concerns for investors.
See More
Starbucks Shares Rally but Remain Down from Peak
- Earnings Recovery Signs: Starbucks shares have risen 13.7% in 2026, buoyed by a favorable reaction to its Q4 2025 earnings report, which highlighted same-store sales growth and a 5% increase in global revenue, although the stock remains down 24% from its 2021 peak.
- China Market Transformation: The agreement with Boyu Capital to convert its China stores into a joint venture, with Boyu taking up to a 60% stake, while saving Starbucks $39 million monthly in operating costs, raises concerns about brand management and market prospects.
- Membership Growth: Despite net income plummeting to $293.3 million, a 75% drop from historical highs, Starbucks' active membership has surged from 24 million to 35.5 million, indicating enhanced customer loyalty that could support future revenue growth.
- Valuation Risks: With a price-to-earnings ratio nearing 78, significantly higher than the S&P 500's 29.5, the market appears overly optimistic about Starbucks' turnaround prospects, prompting investors to carefully consider their positions in the stock.
See More
Missouri Judge Dismisses Starbucks Discrimination Lawsuit
- Lawsuit Dismissed: U.S. District Judge John Ross dismissed Missouri's lawsuit against Starbucks, stating the state failed to prove any discrimination against Missouri residents, indicating legal support for corporate diversity policies.
- Allegations Overview: The lawsuit accused Starbucks of linking executive pay to racial and gender hiring quotas and providing additional training and advancement opportunities to preferred groups, highlighting intense debates over corporate internal policies.
- Contextual Impact: The lawsuit stemmed from Starbucks' diversity policies implemented post-George Floyd's murder in 2020, aimed at addressing social unrest and improving corporate image, reflecting a shift in corporate social responsibility.
- Employee Scale: With over 200,000 employees in the U.S. and 360,000 globally, the lawsuit's outcome could significantly influence Starbucks' future policies on diversity and inclusion as well as its public image.
See More
Starbucks Shares Up 13.7% Year-to-Date: Is It a Buy?
- Strong Earnings Report: Starbucks reported a 5% increase in global revenue and growing same-store sales in its Q4 2025 earnings, alongside the opening of 128 new coffeehouses, indicating robust market demand, although overall performance still requires improvement.
- China Market Transformation: The agreement with Boyu Capital to convert its China locations into a joint venture, with Boyu taking up to a 60% stake, could save Starbucks $39 million monthly in operating costs, yet raises concerns about brand management and operational oversight.
- Significant Membership Growth: As of last quarter, Starbucks boasted 35.5 million active members, a substantial increase from 24 million at its peak in 2021, reflecting enhanced brand loyalty, despite a sharp decline in net income.
- Increased Valuation Risk: With a P/E ratio nearing 78, significantly above the S&P 500 average of 29.5, the market appears to have overly optimistic expectations for Starbucks' recovery, prompting investors to carefully consider their positions in the stock.
See More
Starbucks Earnings Performance and Future Strategy
- Earnings Performance Analysis: Starbucks reported a 4% year-over-year increase in global and U.S. same-store sales, with net revenue up 6%, indicating a rebound in consumer traffic, although profits fell short of analyst expectations, suggesting that their strategic initiatives may be gaining traction.
- China Market Dynamics: The company saw a 7% increase in same-store sales in China, its second-largest market, indicating a recovery in this region, particularly as it shifts to a licensing model through a joint venture with Boyu Capital, aiming to enhance its competitive edge.
- Strategic Transformation and Investment: Starbucks plans to open 600 to 650 new cafes in fiscal 2026 while closing about 400 U.S. locations, reflecting significant business adjustments as it pursues long-term growth amidst ongoing market changes.
- Market Reaction and Investor Focus: While Starbucks shows signs of financial improvement, investors must remain cautious regarding the feasibility of its long-term growth plans, especially given the high valuation and increasing market competition.
See More
Starbucks Earnings Report Analysis
- Performance Overview: Starbucks reported a 4% year-over-year increase in global and U.S. comparable store sales, indicating a rebound in consumer traffic, although profits fell short of analyst expectations with net revenue up approximately 6% year-over-year.
- China Market Dynamics: Same-store sales in China grew by 7%, marking a recovery in Starbucks' second-largest market after facing challenges, although the company is shifting to a joint venture with Boyu Capital to reduce direct investment risks.
- Strategic Transition: Starbucks is undergoing a strategic shift, planning to open 600-650 new cafes in fiscal 2026 while closing about 400 U.S. locations, demonstrating a focus on long-term growth at the expense of short-term profits.
- Investor Attention: Despite a 4% stock price increase following the earnings report, analysts remain cautious about Starbucks' future growth potential, suggesting the company needs to establish a more competitive long-term growth strategy while maintaining profitability.
See More
