Starbucks recently raised its full-year earnings outlook following a strong fiscal third-quarter performance that exceeded Wall Street expectations. The company projected adjusted earnings per share to range between $2.55 and $2.65, up from an earlier forecast of $2.25 to $2.45. Additionally, it now anticipates global same-store sales to increase close to 6%, with U.S. same-store sales expected to rise more than 6%, surpassing previous growth estimates of at least 5%.

For the quarter ending June 28, Starbucks posted earnings of 85 cents per share on $9.32 billion in revenue, outperforming analysts’ estimates of 66 cents per share and $9.16 billion in revenue. The company's net income was $1.05 billion, or 91 cents per share, more than doubling from the prior year’s $558.3 million. Operating margins expanded slightly to 13.6%, helped by tariff refunds that offset earlier trade-related costs, as noted by CFO Cathy Smith during the earnings call.

CEO Brian Niccol credited the positive momentum to his “Back to Starbucks” initiative, which focuses on cafe renovations, menu improvements, and enhanced customer service. Starbucks has invested heavily in store makeovers, with over 1,000 upgrades completed ahead of its fiscal 2026 goal, targeting 1,500 renovations by year-end. These changes aim to create more welcoming environments featuring increased seating, warmer lighting, and refined decor, which Niccol says have contributed to strong traffic growth and higher average customer spends.

Internationally, Starbucks formed a joint venture with Boyu Capital to operate in China, its second-largest market, transitioning to a more license-driven model which now covers about 90% of its global locations. Despite an overall 1% sales dip due to divestment in China, same-store sales outside the U.S. still rose 5.7%. The company also expanded its portfolio with popular new drinks like “spritzers” and saw double-digit growth in Refreshers revenue, reflecting sustained customer enthusiasm beyond morning coffee hours.