Starbucks Corporation (NASDAQ:SBUX) shares are trading higher Wednesday after the company reported better-than-expected second-quarter financial results and raised its fiscal-year 2026 adjusted earnings per share guidance. Multiple analysts also raised their respective price targets on the stock.
- Starbucks stock is surging to new heights today. What’s behind SBUX gains?
SBUX Q1 Highlights
Starbucks reported adjusted earnings per share of 50 cents, beating the consensus estimate of 43 cents. In addition, the coffee giant reported revenue of $9.53 billion, beating the consensus estimate of $9.15 billion.
Global comparable store sales increased 6.2% in the quarter, driven by a 3.8% increase in transactions and a 2.3% increase in average ticket.
North America comparable store sales increased 7.1%, driven by a 4.4% increase in transactions and a 2.6% increase in average ticket. U.S. comparable store sales also rose 7.1%, supported by a 4.3% increase in transactions and a 2.7% increase in average ticket.
International comparable store sales increased 2.6%, driven by a 2.1% increase in transactions and a 0.5% increase in average ticket. China comparable store sales rose 0.5%, with transaction growth partially offset by a decline in average ticket.
The company opened 11 net new stores during the quarter, bringing its total store count to 41,129, with 52% company-operated and 48% licensed locations.
"We had more work to do, but we're pleased to see the combination of our comp growth and cost discipline starting to show up in margins," said CFO Cathy Smith.
Starbucks raised its fiscal-year adjusted earnings per share guidance from between $2.15 and $2.40 to between $2.25 and $2.45, versus the consensus estimate of $2.30. Furthermore, the company sees revenue of $37.18 billion, versus the consensus estimate of $38.06 billion.
Following the company’s quarterly results, multiple analysts lifted price targets on the stock.
- TD Cowen analyst Andrew Charles maintained a Hold and raised the price target from $96 to $106.
- BTIG analyst Peter Saleh maintained a Buy and raised the price target from $105 to $115.
- Baird analyst David Tarantino maintained an Outperform and raised the price target from $112 to $117.
Trend Signals Remain Bullish
Starbucks is trading near the top of its 52-week range, sitting just below the $104.82 high, which is consistent with buyers defending the longer-term uptrend. The stock is trading 4.9% above its 20-day simple moving average (SMA) and 8.8% above its 100-day SMA, a setup that leans bullish for both short-term and intermediate trend control.
The moving average convergence divergence (MACD), a trend/momentum measure, is above its signal line with a positive histogram, which points to upside momentum still having the edge. That aligns with the golden cross that formed in January, a longer-term trend signal that often keeps pullbacks more "buyable" than "breakdown-prone" while it holds.
Over the past 12 months, the stock is up 14.65%, which supports the idea that the bigger trend has been grinding higher despite periodic volatility. With price now pushing into the $102.50 area, traders tend to watch whether the stock can hold above that zone after testing it.
- Key Resistance: $102.50 — where rallies have recently stalled and sellers have shown up.
- Key Support: $85.50 — a prior demand area that can act as a downside "line in the sand."
Starbucks Shares Edge Higher
SBUX Price Action: At the time of writing, Starbucks shares are trading 7.78% higher at $104.88, according to data from Benzinga Pro.
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