SBUX · Q3 FY2026
STARBUCKS CORP Q3 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $9.32B | $9.46B yr ago | Miss |
| EPS | $0.91 | $0.49 yr ago | Beat |
| Free Cash Flow | $1.35B | $0.43B yr ago | Beat |
| Gross Margin | Not disclosed | Not disclosed yr ago | Miss |
| Operating Margin | 10.5% pre-tax margin | 9.9% pre-tax margin yr ago | Beat |
What changed
Revenue declined 1.5% year over year to $9.32 billion, but pre-tax margin expanded 60 basis points to 10.5% and EPS rose 85.7% to $0.91. Free cash flow increased mechanically to $1.35 billion and net debt fell to $9.83 billion, although free cash flow is not treated as a decision-useful metric in this presentation.
Impact on the investment thesis
There is no prior fair value to revise. We establish a provisional base-case fair value of $85 per share: the earnings recovery is encouraging, but one quarter of margin improvement does not yet support the 57.0x trailing P/E at the current price.