Starbucks raised its full-year outlook on Wednesday after delivering four consecutive quarters of same-store sales growth. For the 2026 fiscal year, the coffee giant now expects adjusted earnings per share between $2.55 and $2.65, up from the previous forecast of $2.25 to $2.45 per share. The company also projects nearly 6% growth in global same-store sales, with U.S. comparable sales climbing more than 6%; earlier, it had predicted at least 5% growth in both global and U.S. same-store sales.

"This quarter, our momentum has truly become quantifiable," said CEO Brian Niccol in a video accompanying the company's earnings release. The coffee chain's quarterly profit and revenue both exceeded analyst expectations. Shares surged more than 9% in after-hours trading. Below is a comparison of the company's results for the quarter ending June 28 versus Wall Street estimates: Actual vs. Expected: Adjusted EPS: 85 cents vs. 66 cents; Revenue: $9.32 billion vs. $9.16 billion.

Starbucks reported third-quarter net income attributable to the company of $1.05 billion, or 91 cents per share, up from $558.3 million, or 49 cents per share, in the same period last year. Operating margin expanded to 13.6%, compared to 13.3% in the prior year, partly aided by a tariff refund. Starbucks did not disclose the specific amount of the refund. "The tariff refunds we received in the third quarter essentially offset the related tariffs incurred in the first three quarters of fiscal 2026," CFO Cathy Smith said on the company's earnings call. Excluding restructuring costs and other items, Starbucks earned 85 cents per share.

Net sales fell 1% to $9.3 billion, reflecting the sale of a controlling stake in its China business. Last November, Starbucks announced a joint venture with Boyu Capital, which took over operations of the coffee chain in its second-largest market. Despite the overall revenue decline, sales at stores open at least 13 months rose 7.9%, surpassing Wall Street's estimate of 6% compiled by StreetAccount. The coffee chain reported increases in both transaction volume and average ticket size, indicating customers are returning to stores and spending more.

Under Niccol's "Back to Starbucks" strategy, the company is focused on improving service and making its U.S. cafes more appealing. To achieve this, the chain has invested in labor and store renovations, drawing some investor criticism. However, these efforts appear to be paying off—Starbucks had previously faced sales declines as many loyal customers defected to competitors like Dutch Bros. U.S. same-store sales rose 8.1% in the quarter. U.S. store traffic jumped 4.5%. The average ticket price increased 3.5%, with customers spending more on their orders, willing to pay for latte customizations, and adding food items alongside their drinks.

Beyond operational improvements, Starbucks has also revamped its menu, cutting unpopular items and introducing new beverages. Niccol said the chain will test bubble drinks in select markets. Outside the U.S., international same-store sales grew 5.7%. Niccol noted that with the formation of the China joint venture, approximately 90% of the company's international stores are now licensed. The asset-light model is typically favored by investors because it often leads to long-term profit growth. In the quarter, Starbucks opened 175 net new stores and completed "upgrades" at more than 1,000 locations, achieving its fiscal 2026 target ahead of schedule. Starbucks now aims to finish at least 1,500 store renovations by the end of fiscal 2026, with plans to accelerate the program further in the next fiscal year. Niccol said on the earnings call that cafe renovations are driving higher transaction volumes. The specific changes vary by store location, but customers can generally expect more seating, warmer lighting, and dark wood paneling.