Q4 and full fiscal year 2026
Filed Oct 29, 2026Back to Starbucks plan drove global Q4 comparable coffeehouse sales growth of 7.2%, while Q4 consolidated net revenues decreased 4% to $9.1 billion following the Starbucks China transaction.
Comparable coffeehouse sales, GAAP and non-GAAP margins, and earnings improved substantially, led by North America and lower restructuring costs. Reported Q4 revenue declined because Starbucks converted China retail operations to a licensed joint venture model, while fiscal 2027 guidance calls for an approximately 1% revenue decline.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 FY2026 total net revenuesGAAP | $9.14B | – | (4.5)% |
| Q4 FY2026 company-operated coffeehouses revenueGAAP | $7.43B | – | (5.5)% |
| Q4 FY2026 licensed coffeehouses revenueGAAP | $1.20B | – | 9.4% |
| Q4 FY2026 other revenueGAAP | $515.5M | – | (16.0)% |
| Q4 FY2026 total operating expensesGAAP | $8.25B | – | (12.0)% |
| Q4 FY2026 operating incomeGAAP | $991.8M | – | 256.5% |
| Q4 FY2026 non-GAAP operating incomenon-GAAP | $1.28B | – | 42.5% |
| Q4 FY2026 operating marginGAAP | 10.8 % | – | 790 bps |
| Q4 FY2026 non-GAAP operating marginnon-GAAP | 14.0 % | – | 460 bps |
| Q4 FY2026 net earnings attributable to StarbucksGAAP | $677.2M | – | 408.8% |
| Q4 FY2026 diluted net earnings per common shareGAAP | $ 0.59 | – | 391.7% |
| Q4 FY2026 non-GAAP diluted net earnings per sharenon-GAAP | $ 0.80 | – | 53.8% |
| Q4 FY2026 effective tax rate including noncontrolling interestsGAAP | 27.1 % | – | 830 bps |
| Q4 FY2026 non-GAAP effective tax ratenon-GAAP | 24.7 % | – | 100 bps |
| Q4 FY2026 global comparable coffeehouse salesother | 7.2% | – | – |
| Q4 FY2026 global comparable transactionsother | 1.8% | – | – |
| Q4 FY2026 global average ticketother | 5.2% | – | – |
| FY2026 total net revenuesGAAP | $37.91B | – | 2.0% |
| FY2026 company-operated coffeehouses revenueGAAP | $30.94B | – | 0.6% |
| FY2026 licensed coffeehouses revenueGAAP | $4.62B | – | 6.1% |
| FY2026 other revenueGAAP | $2.35B | – | 12.7% |
| FY2026 total operating expensesGAAP | $34.51B | – | 0.1% |
| FY2026 operating incomeGAAP | $3.69B | – | 25.7% |
| FY2026 non-GAAP operating incomenon-GAAP | $4.51B | – | 22.2% |
| FY2026 operating marginGAAP | 9.7 % | – | 180 bps |
| FY2026 non-GAAP operating marginnon-GAAP | 11.9 % | – | 200 bps |
| FY2026 net gain resulting from divestiture of certain operationsGAAP | $536.3M | – | nm |
| FY2026 net earnings attributable to StarbucksGAAP | $2.53B | – | 36.1% |
| FY2026 diluted net earnings per common shareGAAP | $ 2.21 | – | 35.6% |
| FY2026 non-GAAP earnings per sharenon-GAAP | $ 2.72 | – | 27.7% |
| FY2026 effective tax rate including noncontrolling interestsGAAP | 34.2 % | – | 830 bps |
| FY2026 non-GAAP effective tax ratenon-GAAP | 24.8 % | – | (90) bps |
| FY2026 global comparable coffeehouse salesother | 6.2% | – | – |
| FY2026 global comparable transactionsother | 3.2% | – | – |
| FY2026 global average ticketother | 3.0% | – | – |
| FY2026 net cash provided by operating activitiesGAAP | $4.99B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q4 FY2026 North AmericaRevenue growth was driven by a 7.9% increase in comparable coffeehouse sales, including a 5.0% increase in average ticket and a 2.7% increase in comparable transactions. | $7.33B | – | 6.2% |
| Q4 FY2026 InternationalThe conversion of Starbucks retail operations in China to a licensed joint venture model drove lower company-operated coffeehouse revenues and higher product sales to, and royalty revenue from, licensees. | $1.31B | – | (36.9)% |
| Q4 FY2026 Channel DevelopmentRevenue declined primarily due to a decrease in revenue in the Global Coffee Alliance. | $494.4M | – | (8.9)% |
| Q4 FY2026 Corporate and OtherNo driver was provided. | $12.6M | – | (76.7) % |
| FY2026 North AmericaNorth America comparable coffeehouse sales increased 6.6%, driven by a 3.6% increase in comparable transactions and a 3.0% increase in average ticket. | $28.90B | – | 5.6% |
| FY2026 InternationalInternational comparable coffeehouse sales increased 3.7%, driven by a 2.0% increase in average ticket and a 1.6% increase in comparable transactions. | $6.74B | – | (13.8)% |
| FY2026 Channel DevelopmentNo driver was provided. | $2.17B | – | 16.1% |
| FY2026 Corporate and OtherNo driver was provided. | $95.7M | – | (20.1) % |
Fiscal year 2027, 53-week basis except comparable coffeehouse sales growth metrics, which are relative to fiscal year 2026 on a 52-week basis outlook
- RevenueConsolidated net revenues to decline by approximately 1% year over year, including approximately $700 million related to the 53rd week.
- NoteNorth America comparable coffeehouse sales growth of approximately 4.0%.
- NoteNon-GAAP consolidated operating margin of 13.5% to 14.0%.
- NoteNon-GAAP earnings per share of $3.15 to $3.25, including slightly more than ten cents related to the 53rd week.
- NoteApproximately 1,200 net new coffeehouses globally across company-operated and licensed businesses, led by International.
- NoteDiluted net earnings per share (GAAP) $ 3.07 - 3.17.
- NoteRestructuring and impairments 0.13.
- NoteIncome tax effect on Non-GAAP adjustments (0.05).
Capital returns
- The Board declared a cash dividend of $0.63 per share, payable on November 27, 2026 to shareholders of record on November 13, 2026.
- Cash dividends declared per share were $ 0.63 in Q4 FY2026 and $ 0.62 in Q4 FY2025.
- Cash dividends declared per share were $ 2.49 in FY2026 and $ 2.45 in FY2025.
- Cash dividends paid were $ 2,824.7 million in FY2026 and $ 2,771.4 million in FY2025.
- The company stated plans to resume share repurchases in fiscal 2027.
What drove it
- Q4 global comparable coffeehouse sales increased 7.2%, primarily driven by a 5.2% increase in average ticket and a 1.8% increase in comparable transactions.
- Q4 North America comparable coffeehouse sales increased 7.9%, driven by strength in product mix and customer food attach, pricing and higher delivery sales, as well as higher transactions.
- Q4 GAAP operating margin expanded 790 basis points, primarily driven by lower restructuring costs and sales leverage.
- The China licensed joint venture conversion reduced consolidated and International company-operated revenue while increasing licensee product sales and royalty revenue.
- FY2026 included a pre-tax gain of $536.3 million from the divestiture of Starbucks retail operations in China.
Concerns
- Q4 consolidated net revenues declined (4.5)% and Q4 International revenue declined (36.9)% following the China retail conversion.
- International Q4 comparable coffeehouse sales increased 0.9%, as a 3.7% increase in average ticket was partially offset by a (2.8)% decline in comparable transactions.
- Channel Development Q4 net revenues declined (8.9)% due primarily to lower Global Coffee Alliance revenue.
- FY2027 consolidated net revenues are expected to decline by approximately 1% year over year, primarily due to the China operating-model transition.
- The FY2026 GAAP effective tax rate increased to 34.2 % from 25.9 %.
What to watch
- Fiscal 2027 North America comparable coffeehouse sales growth of approximately 4.0%.
- Delivery against non-GAAP consolidated operating margin guidance of 13.5% to 14.0%.
- The effect of the China licensed joint venture model on International revenue, profitability, product sales and royalty revenue.
- Approximately 1,200 planned net new coffeehouses globally, led by International.
- Execution of plans to resume share repurchases in fiscal 2027.
- The effect of the 53rd week, including approximately $700 million of revenue and slightly more than ten cents of non-GAAP EPS.
Balance sheet and cash flow
- Cash and cash equivalents were $ 3,679.9 million as of September 27, 2026, compared with $ 3,219.8 million as of September 28, 2025.
- Short-term investments were $ 184.3 million as of September 27, 2026, compared with $ 247.2 million as of September 28, 2025.
- Current portion of long-term debt was $ 1,499.0 million as of September 27, 2026, compared with $ 1,498.9 million as of September 28, 2025.
- Long-term debt was $ 11,777.9 million as of September 27, 2026, compared with $ 14,575.9 million as of September 28, 2025.
- Net cash provided by operating activities was $ 4,988.4 million in FY2026, compared with $ 4,747.5 million in FY2025.
- Additions to property, plant and equipment were $ 1,263.6 million in FY2026, compared with $ 2,305.5 million in FY2025.
- Net proceeds from the divestiture of certain operations were $ 2,544.2 million in FY2026.
- Repayments of long-term debt were $ 2,815.9 million in FY2026, compared with $ 1,250.0 million in FY2025.
- Net increase/(decrease) in cash and cash equivalents was $ 460.1 million in FY2026, compared with $ (66.4) million in FY2025.
Analysis
Starbucks finished fiscal 2026 with improved underlying sales momentum. Q4 global comparable coffeehouse sales increased 7.2%, supported by a 5.2% increase in average ticket and a 1.8% increase in comparable transactions. North America was the principal contributor, with comparable coffeehouse sales up 7.9%, including 2.7% transaction growth. International comparable sales rose 0.9%, but transaction growth remained negative at (2.8)% despite a 3.7% increase in ticket.
Reported Q4 revenue declined to $ 9,141.2 million from $ 9,569.0 million. The decline was driven primarily by the conversion of Starbucks retail operations in China to a licensed joint venture model, which reduced company-operated coffeehouse revenue. North America revenue increased 6.2% to $ 7,328.4 million, while International revenue declined (36.9)% to $ 1,305.8 million. The China transition also changed revenue mix toward licensed coffeehouses, product sales and royalty revenue.
Profitability improved sharply. Q4 GAAP operating income rose to $ 991.8 million from $ 278.2 million and GAAP operating margin expanded to 10.8 % from 2.9 %, primarily on lower restructuring costs and sales leverage. Non-GAAP operating margin increased to 14.0 % from 9.4 %. FY2026 GAAP operating income increased 25.7% to $ 3,691.1 million, while FY2026 non-GAAP operating income increased 22.2% to $ 4,512.7 million. FY2026 GAAP net earnings also included a $ 536.3 million gain from the divestiture of certain operations.
Cash generation increased modestly, with FY2026 operating cash flow of $ 4,988.4 million versus $ 4,747.5 million. The company paid $ 2,824.7 million in dividends and repaid $ 2,815.9 million of long-term debt. Cash and cash equivalents ended the year at $ 3,679.9 million and long-term debt was $ 11,777.9 million. The Board declared a $0.63 per-share cash dividend and management stated plans to resume share repurchases in fiscal 2027.
Fiscal 2027 guidance frames a transition year in reported revenue: consolidated net revenues are expected to decline by approximately 1% year over year despite approximately $700 million related to the 53rd week. Starbucks targets approximately 4.0% North America comparable coffeehouse sales growth, non-GAAP operating margin of 13.5% to 14.0%, and non-GAAP EPS of $3.15 to $3.25. The guide also calls for approximately 1,200 net new coffeehouses globally, led by International.
Management, verbatim
We had a terrific quarter and a great year driven by our focus on the fundamentals and what has always set Starbucks apart: exceptional coffee, a moment of connection and a world-class customer experience. This gives me confidence our performance is durable.
Brian Niccol, chairman and chief executive officer
Back to Starbucks started as our turnaround plan. Now, it's our growth plan.
Brian Niccol, chairman and chief executive officer
In fiscal 2026, we returned to comp growth, expanded margin and delivered stronger earnings, and we intend to build on that progress in fiscal 2027.
Cathy Smith, chief financial officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Free cash flow was not reported.
- Share repurchase amount for fiscal 2026 was not reported.
- Prior-quarter comparisons for the reported Q4 and FY2026 metrics were not reported.
- Prior fiscal 2027 guidance was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.