Starbucks' Q1 2026 Earnings: What to Expect

Core Viewpoint - Starbucks Corporation is facing challenges ahead of its fiscal first-quarter earnings announcement for 2025, with analysts projecting a decline in earnings per share (EPS) compared to the previous year [1][2]. Financial Performance - Analysts expect Starbucks to report a profit of $0.59 per share on a diluted basis, which represents a 14.5% decrease from $0.69 per share in the same quarter last year [2]. - For the current fiscal year, analysts project an EPS of $2.35, reflecting a 10.3% increase from $2.13 in fiscal 2025, with further growth anticipated to $3.02 in fiscal 2027, marking a 28.5% year-over-year increase [3]. Stock Performance - Starbucks' stock has decreased by 5.9% over the past year, underperforming the S&P 500 Index, which gained 14.8%, and the Consumer Discretionary Select Sector SPDR Fund, which rose by 4.6% during the same period [4]. - The company's share price has declined approximately 10-14%, attributed to operational, financial, and sentiment-related factors, while major indices have posted gains [5]. Operational Challenges - Starbucks is experiencing slowing comparable store sales and transaction declines, alongside rising labor and commodity costs, which are impacting profitability and near-term earnings expectations [6]. - The company is also dealing with the financial repercussions of its "Back to Starbucks" turnaround plan, which includes store closures and layoffs, further weighing on its operational performance [6].