DailyIQ
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Sector:Consumer CyclicalAll sectors
Last updated 2 minutes ago

SBUX·Starbucks Corporation

$.
+. (+.%)
High
$108.71
Open
$106.00
Market Cap
121.66B
52W High
$108.88
Low
$105.37
P. Close
$105.11
P/E
81.34
52W Low
$77.99
Fwd P/E
34.94
DailyIQ Est.
$107.02
Technical Score (1D)
100
BUY
News Sentiment
64
BULLISH
Starbucks will release its Q3 FY2026 earnings after market close on July 29, with a conference call at 1:15 PM PT, making the results the most immediate catalyst for the next trading days. Analysts project a double‑digit earnings rise, so a surprise could lift guidance and reinforce bullish sentiment. The company’s emphasis on digital sales and international expansion, highlighted in the earnings preview, could drive revenue growth and justify higher margins. Meanwhile, the firm’s $400 million annual software cost‑cut plan and new café‑worker incentive structures aim to improve cash flow, but rising labor costs may offset some savings. Morgan Stanley’s recent mandate upgrade to $111 and overweight rating underscores confidence in earnings and cost control, potentially supporting a higher valuation range. However, valuation models still show a premium, raising uncertainty about whether the stock can sustain its current level if cost savings or growth lag. The upcoming earnings release will be the first test of these dynamics, with guidance on revenue, same‑store sales, and margin trends being critical. Traders should watch the earnings call for any updates on the software savings program’s execution and the impact of the new labor incentive plan. In the next 1–10 trading days, the market will likely react to the earnings surprise and any forward guidance, so monitoring the call’s tone and detail will be essential.
Earnings Summary
Starbucks Corporation, a global coffee industry leader, operates as a roaster, marketer, and retailer of premium coffee and related products, with a diversified presence across North America, International, and Channel Development segments. The company’s core business revolves around its company‑operated and licensed stores, offering a wide array of beverages and food items, while also distributing packaged coffees under its flagship brands. In the most recent quarter, Q4 2024, Starbucks reported earnings per share of $0.69, slightly above the $0.66695 estimate, and revenue of $9.3978 billion, marking a modest revenue increase from the prior year’s $9.3978 billion figure. However, the following quarter, Q1 2025, saw EPS fall to $0.41, below the $0.48368 estimate, and revenue decline to $8.7616 billion, indicating a contraction in same‑store sales. The next two quarters, Q2 2025 and Q3 2025, continued the downward EPS trend with $0.50 and $0.52, both missing estimates of $0.64511 and $0.55621, while revenue rose to $9.456 billion and $9.569 billion, respectively, reflecting a rebound in top‑line growth. Historically, Starbucks has experienced a mixed earnings trajectory, with revenue growth in most quarters but frequent EPS misses, suggesting margin pressure. The company’s recent earnings releases have shown a pattern of revenue expansion coupled with earnings volatility, underscoring the impact of cost‑control initiatives. Recent news highlights a $400 million software cost‑cut plan driven by in‑house AI tools, a move that could streamline operations and lift margins over the next few quarters; the company also announced a $2 billion cost‑reduction plan targeting $400 million in annual software budget cuts, and introduced limited‑time nostalgia drinks to boost same‑store sales. Investors should watch for the next earnings call to gauge the pace of AI‑driven cost savings, any updates on guidance, and the impact of the new product launches on same‑store performance, as these factors will shape the company’s margin trajectory and shareholder returns.

EPS

EstBeatMiss
$0.37$0.46$0.55$0.64$0.73Q4'24Q1'25Q2'25Q3'25Q2'26Q1'26
QtrEstActual+/−
Q1'26$0.60 - -
Q2'26$0.63$0.50-21.1%
Q3'25$0.56$0.52-6.5%
Q2'25$0.65$0.50-22.5%
Q1'25$0.48$0.41-15.2%
Q4'24$0.67$0.69+3.5%

Revenue

EstBeatMiss
$8.6B$8.9B$9.3B$9.6B$10.0BQ4'24Q1'25Q2'25Q3'25Q2'26Q1'26
QtrEstActual+/−
Q1'26$9.8B - -
Q2'26$9.0B$9.5B+5.7%
Q3'25 - $9.6B -
Q2'25 - $9.5B -
Q1'25 - $8.8B -
Q4'24 - $9.4B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

SBUX Stock Snapshot

SBUX is currently trading at $108.37, giving Starbucks Corporation a market cap of 121.66B and a P/E ratio of 81.3. Today's range spans $105.37–$108.71, with shares opening at $106.00 and moving up $3.26 (3.1%) from the prior close. DailyIQ's technical score sits at 100/100 (BUY) with a news sentiment reading of 64/100.

Over the past year SBUX has traded between $77.99 and $108.88 - the current price is +39.0% off the 52-week low and -0.5% from the high. 47 analysts cover the stock with a Hold consensus and a mean 12-month target of $105.94 (range $81.00–$137.00), implying downside of -2.2%.

What SBUX has right now - BUY signal, 100/100 technical score, bullish sentiment at 64/100, price $108.37 (near 52-week highs) - is the profile that shows up in screens looking for Consumer Cyclical growth stories with technical confirmation. (P/E: 81.3) At 121.66B in capitalization, the risk/reward of a setup like this is often better than in mega-cap peers where the same signal translates to a smaller percentage move. Range: $77.99–$108.88.

Earnings revision cycles in large-cap Consumer Cyclical names tend to compound: when technicals confirm a BUY thesis (100/100) and news sentiment (64/100, bullish) supports the narrative, analyst upgrades follow price rather than lead it. At $108.37 (near 52-week highs), SBUX's position within the $77.99–$108.88 annual range suggests there's room for multiple expansion before the stock encounters meaningful technical resistance.