Starbucks said consolidated net revenues for Q1 of fiscal 2026 increased 6% to $9.9 billion, compared with $9.4 billion in the prior year, and global comparable store sales increased 4%. The company said consolidated operating margin contracted 290 basis points to 9.0%.

10-QQuarterly reportFiled Jan 28, 2026Period of report Dec 28, 2025Summary published (UTC) Oct 6, 2026

Key points

AI summary

Starbucks said consolidated net revenues for Q1 of fiscal 2026 increased 6% to $9.9 billion, compared with $9.4 billion in the prior year, and global comparable store sales increased 4%. The company said consolidated operating margin contracted 290 basis points to 9.0%.
Starbucks said North America operating income decreased 27% to $867 million, and operating margin contracted 480 basis points to 11.9%. International operating income, by contrast, increased 19% to $283 million, and operating margin expanded 100 basis points to 13.7%.
Starbucks said it entered into an agreement to form a joint venture with Boyu Capital to operate Starbucks retail in China, and the company plans to use transaction proceeds for debt reduction. For Q1, the effective tax rate was 61.7%, compared with 23.6% in the prior year, and Starbucks cited changes in indefinite reinvestment assertions of $266 million as a key factor.
Starbucks said operating cash flow for Q1 of fiscal 2026 was $1.6 billion, a decrease from $2.1 billion in the prior year. As of December 28, 2025, there were no borrowings outstanding under the 2025 credit facility and commercial paper program, and total available contractual borrowing capacity for general corporate purposes was $3.0 billion.

Key figures

Quarter ended December 28, 2025

Revenue: $9.9B
Operating income: $891M
Net income: $293M
EPS: $0.26
Operating cash flow: $1.6B

From the XBRL financial data filed with the SEC · not processed by AI.

Summary

AI-written

Analysis scope · Management's discussion (MD&A)We analyzed the Management's Discussion and Analysis (MD&A) section. Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

Q1 Net Revenues Up 6%, Operating Margin Down 290 basis points

Starbucks said consolidated net revenues for Q1 of fiscal 2026 increased 6% to $9.9 billion, compared with $9.4 billion in the prior year, and global comparable store sales increased 4%. The company said consolidated operating margin contracted 290 basis points to 9.0%.

Source · Based on the MD&A text of the filing

North America Operating Margin Down 480 basis points, International Segment Up 100 basis points

Starbucks said North America operating income decreased 27% to $867 million, and operating margin contracted 480 basis points to 11.9%. International operating income, by contrast, increased 19% to $283 million, and operating margin expanded 100 basis points to 13.7%.

Source · Based on the MD&A text of the filing

China Joint Venture Plan and Effective Tax Rate 61.7%

Starbucks said it entered into an agreement to form a joint venture with Boyu Capital to operate Starbucks retail in China, and the company plans to use transaction proceeds for debt reduction. For Q1, the effective tax rate was 61.7%, compared with 23.6% in the prior year, and Starbucks cited changes in indefinite reinvestment assertions of $266 million as a key factor.

Source · Based on the MD&A text of the filing

Q1 Operating Cash Flow $1.6 billion, No Borrowings Outstanding

Starbucks said operating cash flow for Q1 of fiscal 2026 was $1.6 billion, a decrease from $2.1 billion in the prior year. As of December 28, 2025, there were no borrowings outstanding under the 2025 credit facility and commercial paper program, and total available contractual borrowing capacity for general corporate purposes was $3.0 billion.

Source · Based on the MD&A text of the filing

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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