Starbucks (NASDAQ:SBUX) reported a significant top-line beat for its fiscal first quarter on Wednesday, providing the clearest evidence yet that its sweeping operational turnaround is gaining traction.
The Seattle-based company posted revenue of $9.92 billion for the period ended late December, surpassing the $9.64 billion anticipated by analysts as it moved to reclaim its identity as a premier "coffee house."
While the revenue performance suggests a stabilizing consumer base, the bottom line reflected the costs of a business in transition.
Starbucks reported GAAP net income of $293.3 million, or 26 cents per share.
On an adjusted basis, earnings reached 56 cents per share, falling just short of the 58-cent consensus estimate.
The slight miss was attributed to accelerated investments in labor and store technology—key pillars of CEO Brian Niccol’s "Back to Starbucks" plan aimed at reducing wait times and improving the barista experience.
Under Niccol’s leadership, the chain has moved aggressively to streamline its overly complex menu and restore the "third place" environment that originally defined the brand.
The revenue surge indicates these efforts are successfully driving higher transaction volumes in the critical North American market.
However, the company continues to navigate a complex international landscape, particularly in China, where competitive pricing pressure remains a persistent headwind to overall margin expansion.
Looking ahead, Starbucks provided a full-year 2026 earnings outlook in the range of $2.15 to $2.40 per share.