Starbucks stock surged 7.77% in after-hours trading on July 29 after the coffee giant reported third-quarter earnings that significantly beat Wall Street expectations, with earnings per share jumping 70% year over year to $0.85, far exceeding the consensus estimate of $0.65.
The company delivered consolidated net revenues of $9.3 billion in the quarter, driven by global comparable store sales growth of 7.9%, marking the fourth consecutive quarter of positive comps. This performance underscores the momentum of CEO Brian Niccol’s “Back to Starbucks” turnaround plan, which has focused on improving operational efficiency, enhancing the customer experience, and strengthening the brand.
Operating margin expanded 430 basis points year over year to 14.4%, reflecting operational improvements across both company-operated and licensed businesses. North America led the performance, with company-operated comparable sales increasing 8.1%, while international company-operated comparable sales grew 5.7%. The strong results prompted management to raise its full-year 2026 earnings per share guidance to a range of $2.25 to $2.45, up from the previous range of $2.15 to $2.40.
In a statement during the earnings call, Niccol emphasized that the company’s focus on human connection and customer experience is driving results. “Our strong third quarter proves this enduring truth delivers enduring results,” he said, highlighting that the brand is “probably stronger than it has been in a long time.” The company has invested in tools, standards, and coaching for store leaders through its Green Apron Service initiative, launched one year ago, which has become the operating foundation of the turnaround.
The earnings beat comes as Starbucks continues to execute on several strategic initiatives. The company has surpassed 1,000 total store uplifts across North America, reaching its fiscal 2026 goal ahead of plan, and plans to accelerate the pace with at least 1,500 uplifts by fiscal year-end 2026. Starbucks Rewards membership also showed strength, growing to 35.8 million 90-day active members in the U.S., with the new program exceeding expectations on engagement and customer reload amounts.
The 70% EPS jump reflects not only revenue growth but also margin expansion as the company’s operational discipline and cost-saving initiatives flow through to earnings. When Starbucks reported Q2 2026 results in April, the stock rallied 6% in post-market trading on an earnings beat and guidance raise, signaling investor confidence in Niccol’s strategy. The Q3 result demonstrates that momentum has sustained and accelerated.
The stock’s after-hours surge to $105.50 positions Starbucks near its 52-week high, with the company having gained approximately 24% year to date. The strong earnings and raised guidance suggest that the turnaround narrative, which has been central to the stock’s rally in 2026, is gaining traction among both investors and customers.
Sources
- MarketBeat — Starbucks Q3 2026 earnings report and live earnings call transcript with actual EPS of $0.85 and revenue figures
- Investing.com — After-hours stock surge of 7.77% to $105.50 following earnings release
- Benzinga — Full-year 2026 EPS guidance raised from $2.15-$2.40 to $2.25-$2.45
- Yahoo Finance — Q3 earnings details and CEO Brian Niccol commentary on the “Back to Starbucks” turnaround plan
