Starbucks shares surged 9.30% in after-hours trading on Wednesday, driven by a strong fiscal third-quarter earnings report that handily beat Wall Street expectations and prompted the company to raise its full-year outlook for the second time.

The coffee giant reported adjusted earnings per share of $0.85, well above the $0.66 consensus estimate, while revenue came in at $9.3 billion, surpassing the $9.16 billion analysts had projected. Global same-store sales rose 7.9% in the quarter, easily topping estimates of 5.7%, as CEO Brian Niccol's turnaround strategy continued to gain traction with four straight quarters of comparable sales growth.

Starbucks also lifted its fiscal 2026 guidance, now expecting adjusted earnings per share of $2.55 to $2.65, up from its prior forecast of $2.25 to $2.45, and projecting global same-store sales growth of 6.5% or more. The company's consolidated quarterly operating margin improved to 19.1% from 13.6% a year earlier, reflecting the payoff from Niccol's efforts to simplify the menu, shorten wait times, and streamline operations through cost cuts and layoffs.