Starbucks Reports Q1 Fiscal Year 2026 Results
SEATTLE--( BUSINESS WIRE)--Starbucks Corporation (Nasdaq: SBUX) today reported financial results for its 13-week fiscal first quarter ended December 28, 2025. GAAP results in fiscal 2026 include items that are excluded from non-GAAP results. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information.
Q1 Fiscal Year 2026 Highlights
“Our Q1 results demonstrate our 'Back to Starbucks' strategy is working and we believe we're ahead of schedule,” commented Brian Niccol, chairman and chief executive officer. “It's great to see the sales momentum driven by more customers choosing Starbucks more often, and this is just the beginning.”
“With our 'Back to Starbucks' initiatives gaining traction, we have clear line of sight to translating topline strength into sustainable earnings growth that positions us for long-term profitable growth,” commented Cathy Smith, chief financial officer.
Q1 North America Segment Results
Quarter Ended
Change (%)
($ in millions)
Dec 28, 2025
Dec 29, 2024
Change in Comparable Store Sales (1)
4%
(4)%
Change in Transactions
3%
(8)%
Change in Ticket
1%
4%
Store Count (2)
18,360
18,537
(1)%
Net revenues
$7,280.5
$7,071.9
3%
Operating Income
$867.0
$1,181.3
(27)%
Operating Margin
11.9%
16.7%
(480) bps
(1)
Includes only Starbucks ® company-operated stores open 13 months or longer. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail stores. Stores that are temporarily closed for fewer than three weeks or operating at reduced hours remain in comparable store sales while stores identified for permanent closures are removed in the month following closure.
(2)
Includes the impact of 3 stores closed in Q1 FY26 as part of our “Back to Starbucks” restructuring plan.
Net revenues for the North America segment increased 3% over Q1 FY25 to $7.3 billion in Q1 FY26, primarily driven by an increase in company-operated store revenue due to a 4% increase in comparable store sales, driven by a 3% increase in comparable transactions and a 1% increase in average ticket.
Operating income decreased to $867.0 million in Q1 FY26 compared to $1.2 billion in Q1 FY25. Operating margin of 11.9% contracted from 16.7% in the prior year, primarily driven by labor investments in support of “Back to Starbucks” and inflationary pressures, primarily driven by tariffs and elevated coffee pricing.
Q1 International Segment Results
Quarter Ended
Change (%)
($ in millions)
Dec 28, 2025
Dec 29, 2024
Change in Comparable Store Sales (1)
5%
(4)%
Change in Transactions
3%
(2)%
Change in Ticket
2%
(2)%
Store Count (2)
22,758
22,039
3%
Net revenues
$2,064.9
$1,871.3
10%
Operating Income
$282.7
$237.1
19%
Operating Margin
13.7%
12.7%
100 bps
(1)
Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail stores. Stores that are temporarily closed for fewer than three weeks or operating at reduced hours remain in comparable store sales while stores identified for permanent closures are removed in the month following closure.
(2)
Includes the impact of 162 stores closed in Q1 FY26 as part of our “Back to Starbucks” restructuring plan.
Net revenues for the International segment increased 10% over Q1 FY25 to $2.1 billion in Q1 FY26, primarily driven by an increase in company-operated store revenue due to a 5% increase in comparable store sales, driven by a 3% increase in comparable transactions and a 2% increase in average ticket, and an increase in our licensed store business revenue. Also contributing to the increase in revenue was net new company-operated store growth of 4% over the past 12 months.
Operating income increased to $282.7 million in Q1 FY26 compared to $237.1 million in Q1 FY25. Operating margin of 13.7% expanded from 12.7% in the prior year, primarily driven by sales leverage, and lower store operating and depreciation and amortization costs after classifying assets for Starbucks retail operations in China as held for sale and ceasing the related depreciation and amortization, partially offset by restructuring costs associated with the closure of coffeehouses and inflationary pressures, primarily driven by elevated coffee pricing.
Q1 Channel Development Segment Results
Quarter Ended
Change (%)
($ in millions)
Dec 28, 2025
Dec 29, 2024
Net revenues
$522.7
$436.3
20%
Operating Income
$215.8
$208.0
4%
Operating Margin
41.3%
47.7%
(640) bps
Net revenues for the Channel Development segment increased 20% over Q1 FY25 to $522.7 million in Q1 FY26, primarily due to an increase in revenue in the Global Coffee Alliance and higher revenue in our global ready-to-drink business.
Operating income increased to $215.8 million in Q1 FY26 compared to $208.0 million in Q1 FY25. Operating margin of 41.3% contracted from 47.7% in the prior year, primarily driven by mix shift and higher global product costs, partially offset by an increase in our North American Coffee Partnership joint venture income.
Company Update
Fiscal Year 2026 Guidance
The company introduces the following fiscal year 2026 guidance (all growth targets are relative to fiscal year 2025 non-GAAP measures unless specified):
Please refer to the section entitled "Non-GAAP Disclosure" and the reconciliation of GAAP measures to non-GAAP measures at the end of this release. Certain projected non-GAAP financial measures cannot be reconciled to the most comparable GAAP measure without unreasonable effort.
To provide the best view of expectations for the underlying business, fiscal year 2026 guidance assumes Starbucks China retail operations remain company-operated in the second half of the fiscal year.
The company will provide additional information regarding its business outlook during its regularly scheduled quarterly earnings conference call.
Conference Call
Starbucks will hold a conference call today at 8:00 a.m. Eastern Time, which will be hosted by Brian Niccol, chairman and ceo, and Cathy Smith, cfo. The call will be webcast and can be accessed at http://investor.starbucks.com. A replay of the webcast will be available until end of day Friday, March 13, 2026.
The company uses its website as a tool to disclose important information about the company and comply with its disclosure obligations under Regulation Fair Disclosure.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to responsibly sourcing and roasting high-quality arabica coffee. Today, with a global footprint of more than 41,000 company-operated and licensed coffeehouses and a growing presence in consumer-packaged goods, we are the world's premier purveyor of specialty coffee. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at about.starbucks.com or www.starbucks.com.
Forward-Looking Statements
Certain statements contained herein and in our investor conference call related to these results and progress towards our “Back to Starbucks” plan are “forward-looking” statements within the meaning of applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections. Our forward-looking statements, and the risks and uncertainties related thereto, include, but are not limited to, those described under the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections of the company’s most recently filed periodic reports on Form 10-K and Form 10-Q and in other filings with the SEC, as well as, among others:
In addition, many of the foregoing risks and uncertainties are, or could be, exacerbated by any worsening of the global business and economic environment, and new risks periodically emerge. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this release. We are under no obligation to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise.
Key Metrics
We believe the company's financial results and long-term growth model will continue to be driven by new store openings, comparable store sales growth and operating margin management. We believe these key operating metrics are useful to investors because management uses these metrics to assess the growth of our business and the effectiveness of our marketing and operational strategies.
STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited, in millions, except per share data)
Quarter Ended
Quarter Ended
Dec 28,
2025
Dec 29,
2024
%
Change
Dec 28,
2025
Dec 29,
2024
As a % of total net revenues
Net revenues:
Company-operated stores
$
8,188.0
$
7,785.3
5.2
%
82.6
%
82.8
%
Licensed stores
1,130.4
1,135.7
(0.5
)
11.4
12.1
Other
596.7
476.8
25.1
6.0
5.1
Total net revenues
9,915.1
9,397.8
5.5
100.0
100.0
Product and distribution costs
3,273.6
2,893.7
13.1
33.0
30.8
Store operating expenses
4,552.3
4,203.0
8.3
45.9
44.7
Other operating expenses
131.2
152.5
(14.0
)
1.3
1.6
Depreciation and amortization expenses
400.9
407.6
(1.6
)
4.0
4.3
General and administrative expenses
638.8
665.8
(4.1
)
6.4
7.1
Restructuring and impairments
88.1
—
nm
0.9
—
Total operating expenses
9,084.9
8,322.6
9.2
91.6
88.6
Income from equity investees
60.6
46.5
30.3
0.6
0.5
Operating income
890.8
1,121.7
(20.6
)
9.0
11.9
Interest income and other, net
13.0
27.8
(53.2
)
0.1
0.3
Interest expense
(139.0
)
(127.2
)
9.3
(1.4
)
(1.4
)
Earnings before income taxes
764.8
1,022.3
(25.2
)
7.7
10.9
Income tax expense
471.6
241.4
95.4
4.8
2.6
Net earnings including noncontrolling interests
293.2
780.9
(62.5
)
3.0
8.3
Net earnings/(loss) attributable to noncontrolling interests
(0.1
)
0.1
(200.0
)
0.0
0.0
Net earnings attributable to Starbucks
$
293.3
$
780.8
(62.4
)
3.0
%
8.3
%
Net earnings per common share - diluted
$
0.26
$
0.69
(62.3
)%
Weighted avg. shares outstanding - diluted
1,141.9
1,138.4
Cash dividends declared per share
$
0.62
$
0.61
Supplemental Ratios:
Store operating expenses as a % of company-operated store revenues
55.6
%
54.0
%
Effective tax rate including noncontrolling interests
61.7
%
23.6
%
Segment Results (in millions)
North America
Dec 28,
2025
Dec 29,
2024
%
Change
Dec 28,
2025
Dec 29,
2024
Quarter Ended
As a % of North America
total net revenues
Net revenues:
Company-operated stores
$
6,635.5
$
6,367.9
4.2
%
91.1
%
90.0
%
Licensed stores
643.2
702.7
(8.5
)
8.8
9.9
Other
1.8
1.3
38.5
0.0
0.0
Total net revenues
7,280.5
7,071.9
2.9
100.0
100.0
Product and distribution costs
2,135.5
1,967.5
8.5
29.3
27.8
Store operating expenses
3,785.1
3,458.4
9.4
52.0
48.9
Other operating expenses
59.8
78.4
(23.7
)
0.8
1.1
Depreciation and amortization expenses
298.8
289.0
3.4
4.1
4.1
General and administrative expenses
94.3
97.3
(3.1
)
1.3
1.4
Restructuring and impairments
40.0
—
nm
0.5
—
Total operating expenses
6,413.5
5,890.6
8.9
88.1
83.3
Operating income
$
867.0
$
1,181.3
(26.6
)%
11.9
%
16.7
%
Supplemental Ratio:
Store operating expenses as a % of company-operated store revenues
57.0
%
54.3
%
International
Dec 28,
2025
Dec 29,
2024
%
Change
Dec 28,
2025
Dec 29,
2024
Quarter Ended
As a % of International
total net revenues
Net revenues:
Company-operated stores
$
1,552.5
$
1,417.4
9.5
%
75.2
%
75.7
%
Licensed stores
487.2
433.0
12.5
23.6
23.1
Other
25.2
20.9
20.6
1.2
1.1
Total net revenues
2,064.9
1,871.3
10.3
100.0
100.0
Product and distribution costs
748.1
647.0
15.6
36.2
34.6
Store operating expenses
767.2
744.6
3.0
37.2
39.8
Other operating expenses
56.8
60.7
(6.4
)
2.8
3.2
Depreciation and amortization expenses
70.1
89.1
(21.3
)
3.4
4.8
General and administrative expenses
96.0
92.4
3.9
4.6
4.9
Restructuring and impairments
43.6
—
nm
2.1
—
Total operating expenses
1,781.8
1,633.8
9.1
86.3
87.3
Income/(loss) from equity investees
(0.4
)
(0.4
)
nm
0.0
0.0
Operating income
$
282.7
$
237.1
19.2
%
13.7
%
12.7
%
Supplemental Ratio:
Store operating expenses as a % of company-operated store revenues
49.4
%
52.5
%
Channel Development
Dec 28,
2025
Dec 29,
2024
%
Change
Dec 28,
2025
Dec 29,
2024
Quarter Ended
As a % of
Channel Development
total net revenues
Net revenues
$
522.7
$
436.3
19.8
%
Product and distribution costs
352.6
259.8
35.7
67.5
%
59.5
%
Other operating expenses
13.8
13.4
3.0
2.6
3.1
General and administrative expenses
1.2
2.0
(40.0
)
0.2
0.5
Restructuring and impairments
0.3
—
nm
0.1
—
Total operating expenses
367.9
275.2
33.7
70.4
63.1
Income from equity investees
61.0
46.9
30.1
11.7
10.7
Operating income
$
215.8
$
208.0
3.8
%
41.3
%
47.7
%
Corporate and Other
Dec 28,
2025
Dec 29,
2024
%
Change
Quarter Ended
Net revenues
$
47.0
$
18.3
156.8
%
Product and distribution costs
37.4
19.4
92.8
Other operating expenses
0.8
—
nm
Depreciation and amortization expenses
32.0
29.5
8.5
General and administrative expenses
447.3
474.1
(5.7
)
Restructuring and impairments
4.2
—
nm
Total operating expenses
521.7
523.0
(0.2
)
Operating loss
$
(474.7
)
$
(504.7
)
(5.9
)%
STARBUCKS CORPORATION
CONSOLIDATED BALANCE SHEETS
(unaudited, in millions, except per share data)
Dec 28,
2025
Sep 28,
2025
ASSETS
Current assets:
Cash and cash equivalents
$
3,413.4
$
3,219.8
Short-term investments
184.9
247.2
Accounts receivable, net
1,219.2
1,277.5
Inventories
2,114.4
2,185.6
Prepaid expenses and other current assets
374.1
452.2
Assets held for sale
4,716.6
—
Total current assets
12,022.6
7,382.3
Long-term investments
288.3
246.9
Equity investments
432.0
466.2
Property, plant and equipment, net
7,399.5
8,493.5
Operating lease, right-of-use asset
8,228.2
9,315.7
Deferred incomes taxes, net
1,600.8
1,826.9
Other long-term assets
778.6
752.5
Other intangible assets
167.2
166.8
Goodwill
1,311.1
3,368.9
Total assets
$
32,228.3
$
32,019.7
LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
Current liabilities:
Accounts payable
$
1,682.2
$
1,852.8
Accrued liabilities
2,334.3
2,359.7
Accrued payroll and benefits
751.4
1,093.9
Current portion of operating lease liability
1,342.9
1,564.5
Stored value card liability and current portion of deferred revenue
2,121.7
1,840.6
Current portion of long-term debt
1,499.5
1,498.9
Liabilities held for sale
1,754.6
—
Total current liabilities
11,486.6
10,210.4
Long-term debt
14,580.9
14,575.9
Operating lease liability
8,047.6
8,972.2
Deferred revenue
5,748.0
5,772.6
Other long-term liabilities
746.5
577.8
Total liabilities
40,609.6
40,108.9
Shareholders’ deficit:
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,139.1 and 1,136.9 shares, respectively
1.1
1.1
Additional paid-in-capital
721.5
634.1
Retained deficit
(8,685.4
)
(8,272.5
)
Accumulated other comprehensive income/(loss)
(425.9
)
(459.3
)
Total shareholders’ deficit
(8,388.7
)
(8,096.6
)
Noncontrolling interests
7.4
7.4
Total deficit
(8,381.3
)
(8,089.2
)
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY/(DEFICIT)
$
32,228.3
$
32,019.7
STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
Quarter Ended
Dec 28,
2025
Dec 29,
2024
OPERATING ACTIVITIES:
Net earnings including noncontrolling interests
$
293.2
$
780.9
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization
431.9
432.2
Deferred income taxes, net
302.6
(14.9
)
Income earned from equity method investees, net
(62.3
)
(53.1
)
Distributions received from equity method investees
96.7
81.9
Stock-based compensation
126.1
100.6
Non-cash lease costs
352.8
493.7
Loss on disposal, impairment, and accelerated amortization of assets
109.7
40.9
Other
5.4
(7.0
)
Cash provided by/(used in) changes in operating assets and liabilities:
Accounts receivable
(0.2
)
(75.8
)
Inventories
(31.8
)
25.1
Income taxes payable
55.4
104.9
Accounts payable
(39.0
)
230.2
Deferred revenue
472.3
480.9
Operating lease liability
(433.2
)
(510.2
)
Other operating assets and liabilities
(81.9
)
(38.3
)
Net cash provided by operating activities
1,597.7
2,072.0
INVESTING ACTIVITIES:
Purchases of investments
(51.0
)
(66.3
)
Sales of investments
0.3
—
Maturities and calls of investments
77.2
87.6
Additions to property, plant and equipment
(323.7
)
(692.9
)
Acquisitions, net of cash acquired
—
(177.1
)
Other
(25.7
)
(6.5
)
Net cash used in investing activities
(322.9
)
(855.2
)
FINANCING ACTIVITIES:
Net proceeds from issuance of short-term debt
2.5
—
Repayments of short-term debt
—
(5.4
)
Proceeds from issuance of common stock
17.7
17.1
Cash dividends paid
(705.1
)
(691.9
)
Minimum tax withholdings on share-based awards
(58.1
)
(74.6
)
Net cash used in financing activities
(743.0
)
(754.8
)
Effect of exchange rate changes on cash and cash equivalents
9.0
(76.8
)
Less: Net change in cash balances classified as assets held for sale
(347.2
)
—
Net increase/(decrease) in cash and cash equivalents
193.6
385.2
CASH AND CASH EQUIVALENTS:
Beginning of period
3,219.8
3,286.2
End of period
$
3,413.4
$
3,671.4
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest, net of capitalized interest
$
142.4
$
98.3
Income taxes
$
94.9
$
121.4
Supplemental Information
The following supplemental information is provided for historical and comparative purposes.
U.S. Supplemental Data
Quarter Ended
Change (%)
($ in millions)
Dec 28, 2025
Dec 29, 2024
Net revenues
$6,795.8
$6,604.6
3%
Change in Comparable Store Sales (1)
4%
(4)%
Change in Transactions
3%
(8)%
Change in Ticket
1%
4%
Store Count (2)
16,911
17,049
(1)%
(1)
Includes only Starbucks ® company-operated stores open 13 months or longer. Comparable store sales exclude Siren Retail stores. Stores that are temporarily closed for fewer than three weeks or operating at reduced hours remain in comparable store sales while stores identified for permanent closures are removed in the month following closure.
(2)
Includes the impact of 3 stores closed in Q1 FY26 as part of our “Back to Starbucks” restructuring plan.
China Supplemental Data
Quarter Ended
Change (%)
($ in millions)
Dec 28, 2025
Dec 29, 2024
Net revenues
$823.4
$743.6
11%
Change in Comparable Store Sales (1)
7%
(6)%
Change in Transactions
5%
(2)%
Change in Ticket
2%
(4)%
Store Count (2)
8,011
7,685
4%
(1)
Includes only Starbucks ® company-operated stores open 13 months or longer. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail stores. Stores that are temporarily closed for fewer than three weeks or operating at reduced hours remain in comparable store sales while stores identified for permanent closures are removed in the month following closure.
(2)
Includes the impact of 83 stores closed in Q1 FY26 as part of our “Back to Starbucks” restructuring plan.
Store Data
Net stores opened/(closed) and transferred during the period (1)
Quarter Ended
Stores open as of
Dec 28,
2025
Dec 29,
2024
Dec 28,
2025
Dec 29,
2024
North America:
Company-operated stores
60
81
11,078
11,242
Licensed stores
(11
)
32
7,282
7,295
Total North America
49
113
18,360
18,537
International:
Company-operated stores (2)
(51
)
226
10,445
10,083
Licensed stores (2)
130
38
12,313
11,956
Total International
79
264
22,758
22,039
Total Company
128
377
41,118
40,576
(1)
Includes the impact of 165 stores closed in Q1 FY26 as part of our “Back to Starbucks” restructuring plan.
(2)
Includes the conversion of 113 licensed stores to company-operated stores following the acquisition of 23.5 Degrees Topco Limited during the first quarter of fiscal 2025.
Non-GAAP Disclosure
In addition to the generally accepted accounting principles in the United States (GAAP) results provided in this release, the company provides certain non-GAAP financial measures in this release that are not in accordance with, or alternatives for, GAAP. Our non-GAAP financial measures of non-GAAP general and administrative expenses (G&A), non-GAAP operating income, non-GAAP operating income growth (loss), non-GAAP operating margin, non-GAAP effective tax rate and non-GAAP earnings per share exclude the below-listed items and their related tax impacts, as management believes this exclusion contributes to a more meaningful evaluation of the company’s future operating performance and comparisons to the company's past operating performance. The GAAP measures most directly comparable to non-GAAP G&A, non-GAAP operating income, non-GAAP operating income growth (loss), non-GAAP operating margin, non-GAAP effective tax rate and non-GAAP earnings per share are G&A, operating income, operating income growth (loss), operating margin, effective tax rate and diluted net earnings per share, respectively.
Non-GAAP Exclusion
Rationale
Restructuring and impairment costs
Management excludes restructuring and impairment costs relating to the write-down of certain company-operated store assets and employee severance costs for the reasons discussed above. These expenses are anticipated to be completed within a finite period of time.
Transaction costs
Management excludes transaction costs for the reasons discussed above. These expenses are anticipated to be completed within a finite period of time.
Income tax impact from changes in indefinite reinvestment assertions
Management excludes the income tax impact from changes in indefinite reinvestment assertions as a result of classifying our Starbucks retail operations in China as held for sale for the reasons discussed above. These expenses are anticipated to be completed within a finite period of time.
The company also presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present the constant currency information, including with respect to consolidated net revenues, operating income, operating margin, and earnings per share, current period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average monthly exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods, excluding related hedging activities. We believe the presentation of results on a constant currency basis in addition to GAAP results helps users better understand our performance, because it excludes the effects of foreign currency volatility that are not indicative of our underlying operating results.
Non-GAAP G&A, non-GAAP operating income, non-GAAP operating income growth (loss), non-GAAP operating margin, non-GAAP effective tax rate, non-GAAP earnings per share, and constant currency may have limitations as analytical tools. These measures should not be considered in isolation or as a substitute for analysis of the company’s results as reported under GAAP. Other companies may calculate these non-GAAP financial measures differently than the company does, limiting the usefulness of those measures for comparative purposes.
The company is unable to provide a reconciliation of our Non-GAAP consolidated operating margin growth target to the corresponding GAAP financial measure because the company believes that it would not be possible for it to have the required information necessary to quantitatively reconcile such measures with sufficient precision without unreasonable efforts.
STARBUCKS CORPORATION
NET REVENUE CONSTANT CURRENCY RECONCILIATION
(unaudited, in millions)
Quarter Ended
Consolidated
Revenue for the quarter ended Dec 29, 2024 as reported (GAAP)
$
9,397.8
Revenue for the quarter ended Dec 28, 2025 as reported (GAAP)
$
9,915.1
Change (%)
5.5
%
Constant Currency Impact (%)
(0.1
)
Change in Constant Currency (%)
5.4
%
STARBUCKS CORPORATION
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(unaudited, in millions, except per share data)
Quarter Ended (1)
Consolidated
Dec 28,
2025
Dec 29,
2024
Change
Constant Currency Impact
Change in Constant Currency
Operating income, as reported (GAAP)
$
890.8
$
1,121.7
(20.6)%
Restructuring and impairments (2)
88.1
—
Transaction costs (3)
19.9
—
Non-GAAP operating income
$
998.8
$
1,121.7
(11.0)%
0.2%
(10.8)%
Operating margin, as reported (GAAP)
9.0
%
11.9
%
(290) bps
Restructuring and impairments (2)
0.9
—
Transaction costs (3)
0.2
—
Non-GAAP operating margin
10.1
%
11.9
%
(180) bps
— bps
(180) bps
Diluted net earnings per share, as reported (GAAP)
$
0.26
$
0.69
(62.3)%
Restructuring and impairments (2)
0.08
—
Transaction costs (3)
0.02
—
Income tax effect on Non-GAAP adjustments (4)
(0.02
)
—
Income tax impact from changes in indefinite reinvestment assertions (5)
0.23
—
Non-GAAP diluted net earnings per share
$
0.56
$
0.69
(18.8)%
—%
(18.8)%
(1)
Certain numbers may not foot due to rounding convention.
(2)
Represents costs associated with our restructuring efforts.
(3)
Represents transaction-related expenses related to the strategic partnership with Boyu Capital to operate Starbucks retail in China.
(4)
Adjustments were determined based on the nature of the underlying items and their relevant jurisdictional tax rates.
(5)
Represents the impact from changes in indefinite reinvestment assertions as a result of classifying our Starbucks retail operations in China as held for sale.
Quarter Ended
Consolidated
Dec 28,
2025
Dec 29,
2024
Change
Effective tax rate (GAAP)
61.7
%
23.6
%
3,810 bps
Income tax effect on Non-GAAP adjustments (1)
4.1
%
—
%
Income tax impact from changes in indefinite reinvestment assertions (2)
(39.0
)%
—
%
Non-GAAP effective tax rate
26.8
%
23.6
%
320 bps
(1)
Adjustments were determined based on the nature of the underlying items and their relevant jurisdictional tax rates.
(2)
Represents the impact from changes in indefinite reinvestment assertions as a result of classifying our Starbucks retail operations in China as held for sale.
Q1 QTD FY26 NON-GAAP DISCLOSURE DETAILS
(unaudited, in millions, and before income taxes)
Q1 QTD FY26
North America
International
Channel Development
Corporate and Other
Consolidated
Statement of Earnings Line Item
Restructuring and impairments (1)
Restructuring and impairments (1)
Restructuring and impairments (1)
Restructuring and impairments (1)
Transaction costs (2)
Total Non-GAAP Adjustment
Restructuring and impairments
$
40.0
$
43.6
$
0.3
$
4.2
$
88.1
General and administrative expenses
$
19.9
$
19.9
Total impact to operating income
$
(40.0
)
$
(43.6
)
$
(0.3
)
$
(4.2
)
$
(19.9
)
$
(108.0
)
(1)
Represents costs associated with our restructuring efforts.
(2)
Represents transaction-related expenses related to the strategic partnership with Boyu Capital to operate Starbucks retail in China.
STARBUCKS CORPORATION
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(unaudited)
Year Ended
Consolidated
Sep 27,
2026
(Projected)
Diluted net earnings per share (GAAP)
$ 1.74- 1.99
Restructuring and impairments
0.20
Transaction costs
0.04
Income tax impact from changes in indefinite reinvestment assertions
0.23
Income tax effect on Non-GAAP adjustments
(0.06)
Non-GAAP net earnings per share
$ 2.15- 2.40