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SBUX · Q3 2026
Archived report (Q3 2026). Latest deep dive →
The quarter in brief
A messy but fundamentally healthy quarter — GAAP net income surged 87% almost entirely on a one-time $536M China divestiture gain, while underlying operating income grew a modest 5% as strong 7.9% U.S. comparable sales growth offset the loss of China company-operated revenue and elevated restructuring charges.
Net Earnings (Starbucks)
$1,045M
up 87% y/y
Total Net Revenues
$9,323M
down 1.4% y/y
Operating Income
$980M
up 4.8% y/y
Operating Expenses
$8,421M
down 1.8% y/y
All figures in $M.
| Line item | Amount and change |
|---|---|
| North America | $7,395 · +7% |
| International | $1,323 · −34% |
| Channel Development | $588 · +22% |
| Corporate & Other | $17 · −50% |
| Total Net Revenues | $9,323 · −1.4% |
| Operating Expenses | $8,421 · −1.8% · product, store, G&A, D&A, restructuring |
| Income from Equity Investees | $79 · +38% |
| Operating Income | $980 · +4.8% · margin 10.5% (+60bps) |
| Net Gain on China Divestiture* | $536 · new |
| Interest Income & Other, net | $37 · +45% |
| Interest Expense | −$135 · −5.4% |
| Earnings Before Taxes | $1,419 · +73% |
| Income Tax Expense | $374 · +44% · eff. rate 26.4% (vs 31.8%) |
| Net Earnings (Starbucks) | $1,045 · +87% · EPS diluted $0.91 (+86%) |
Verdict: a messy but fundamentally healthy quarter — GAAP net income surged 87% almost entirely on a one-time $536M China divestiture gain, while underlying operating income grew a modest 5% as strong 7.9% U.S. comparable sales growth offset the loss of China company-operated revenue and elevated restructuring charges.
OCF $3.6B (9 months) · no share buybacks, 29.8M shares remain authorized · quarterly dividend $0.62/share (~$707M) · FY26 capex expected below FY25
Source and notation
* marks non-cash / ≈ estimated. Source: Starbucks Corporation press release / 10-Q (SEC EDGAR).
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Chart: “SBUX Q3 2026: where the revenue went” by Who Reports Today, https://whoreportstoday.com/t/sbux/q3-2026. Licensed under CC BY 4.0.
<figure> <a href="https://whoreportstoday.com/t/sbux/q3-2026"><img src="https://whoreportstoday.com/t/sbux/q3-2026/sankey.png" alt="SBUX Q3 2026: where the revenue went" loading="lazy" style="max-width:100%;height:auto"></a> <figcaption>Source: <a href="https://whoreportstoday.com/t/sbux/q3-2026">Who Reports Today</a>, licensed under <a href="https://creativecommons.org/licenses/by/4.0/">CC BY 4.0</a></figcaption> </figure>
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<a href="https://whoreportstoday.com/t/sbux/q3-2026">SBUX Q3 2026 earnings chart (Who Reports Today)</a>
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- Net gain of $536.3M from divesting Starbucks China retail (60% stake sold to Boyu Capital) drove the bulk of the 87% net income jump — core operating income rose just 4.8%.
- Consolidated revenue fell 1.4% y/y solely due to China conversion to a licensed JV model (~$776M lost company-operated revenue); global comparable sales actually rose 7.9%, with the U.S. up 7.9%.
- Restructuring and impairment charges spiked to $302.6M (from $20.8M) mainly from Starbucks Reserve/Roastery asset impairments and continued 'Back to Starbucks' store closures/severance.
- Effective tax rate fell to 26.4% from 31.8% as prior-year one-off tax items lapped, partly offset by ~$147.8M incremental tax tied to the China divestiture.
- Tariff refunds (IEEPA-related) and lower inflation helped product/distribution costs as % of revenue, while labor investments and insurance reserves pushed store opex higher as % of company-operated sales.
- International segment operating margin expanded 550bps largely as an accounting artifact of shifting China from consolidated stores to a licensed/equity-method structure, not organic improvement.
What distorts the picture in this report and what to watch beyond the headlines.
SBUX — Starbucks is a global coffee company and coffeehouse chain offering brewed coffee, espresso beverages, and food items.
Headquartered in Seattle, Washington, it operates in numerous countries worldwide.
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