Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle's Best Coffee, Ethos, Starbucks Reserve, and Princi brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

Starbucks Corporation

Key Points
It posted a mixed first quarter.
It beat the consensus analyst revenue forecast but missed on profitability.
Wednesday morning, Starbucks (NASDAQ: SBUX) posted a quarterly earnings report that beat analyst revenue expectations. That wasn't enough to lift its shares into positive territory, though they only dipped by 0.6% in price on the day.
Lukewarm performance?
Before market open, Starbucks served up its first quarter of fiscal 2026 results. For the period, its net revenue rose 6% year over year to $9.9 billion. That was on the back of 4% growth in global comparable store sales.
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The bottom line followed a much different trajectory. The company's net income in accordance with generally accepted accounting principles (GAAP) fell to $293 million from first quarter 2025's nearly $781 million. On a per-share, non-GAAP (adjusted) basis, net earnings declined to $0.56 from $0.69.
Starbucks beat the average analyst estimate for revenue, but missed slightly for profitability. Collectively, pundits tracking the coffee slinger were modeling net revenue of slightly more than $9.6 billion and adjusted net income of $0.59 per share.
The company managed to squeeze out growth in both its U.S. stores and its international outlets. It attributed the decline in profitability to labor investments it said were tied to its "Back to Starbucks" revitalization strategy and to inflationary pressures, primarily higher coffee input costs and tariff-affected expenses.
Not a disaster, but not a runaway success either
Starbucks also provided guidance for the entirety of the current fiscal year. It's forecasting that both net revenue and comparable sales will grow at a 3% clip over fiscal 2025, not least because it anticipates the opening of roughly 600 to 650 net new coffee shops during the year. Adjusted net income should land at $2.15 to $2.40 per share; the 2015 figure was $2.13.
Starbucks has been something of a pariah stock in recent months, largely due to uninspiring results; a wave of store closures also doesn't help investor (or consumer) morale. Considering that, its first "quarterlies" for the new fiscal year certainly weren't bad, although I still don't think we're seeing any significant operational or fundamental changes with the Back to Starbucks program.
Should you buy stock in Starbucks right now?
Before you buy stock in Starbucks, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Starbucks wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
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*Stock Advisor returns as of January 28, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Starbucks Stock Slipped on Wednesday

The S&P 500 Index ($SPX) (SPY) today is down -0.06%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.11%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.19%.
Stock indexes are mixed today, after the S&P 500 posting a new all-time high earlier in the day and the Nasdaq 100 posting a 3-month high. Strength in chipmakers and AI infrastructure stocks is buoying market today after a sharp increase in orders at ASML Holding NV added fresh optimism to the sustainability of artificial intelligence spending. ASML Holding NV, the only producer of lithography machines that are needed to make advanced semiconductors, reported today that Q4 bookings were a record 13.2 billion euros, well above the consensus of 6.85 billion euros. Also, Seagate Technology Holdings NV and Texas Instruments reported better-than-expected earnings results from.
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However, stocks fell back from their best levels after the Federal Reserve announced it would halt its series of interest rate reductions, choosing to keep the benchmark rate steady between 3.5% and 3.75%. This decision met broad market expectations and ended a period of three consecutive quarter-point cuts that were designed to protect the labor market from potential weakness.
The dollar index (DXY00) is moving higher today, recovering some of Tuesday’s plunge to a nearly 4-year low. The dollar sank on Tuesday after President Trump said that he's comfortable with the recent weakness in the dollar. Meanwhile, Mr. Trump’s comments have pushed gold prices (GCG26) up more than +3% today to a new all-time high.
WTI crude oil (CLH26) climbed to a 4-month high today after President Trump said in a social media post that he wants Iran to come to the table and negotiate a “fair and equitable deal with No Nuclear Weapons.” He warned Iran that time is running out to make a deal with the US, noting that a fleet of US warships entering the region is ready to complete their mission “with speed and violence.”
US MBA mortgage applications fell -8.5% in the week ended January 23, with the purchase mortgage sub-index down -0.4% and the refinancing mortgage sub-index down 15.7%. The average 30-year fixed rate mortgage rose +8 bp to 6.24% from 6.16% in the prior week.
Threats to stocks and the dollar remain. President Trump has threatened new 100% tariffs on US imports from Canada, the possibility of a US government shutdown over ICE funding, and lingering concerns about Greenland. In addition, there is political uncertainty about the Fed, as the FOMC is expected to leave rates unchanged at today’s meeting, potentially drawing new threats from Mr. Trump for refusing to cut rates further.
The risk of another partial government shutdown is negative for stocks. Senate Democrats threatened to block a government funding deal over Department of Homeland Security/ICE funding after the ICE shooting of an ICU nurse in Minnesota on Saturday. There could be a partial government shutdown when the current stopgap funding measure expires this Friday.
The market’s focus this week will be on new tariff news and the prospects for a continued resolution (CR) to fund the government. Later today, the FOMC is expected to keep the fed funds target range unchanged at 3.50%-3.75%. Post-FOMC-meeting comments from Fed Chair Powell will also be scrutinized for clues about the future of Fed policy. On Thursday, initial weekly unemployment claims are expected to increase by 5,000 to 205,000. Also, Q3 nonfarm productivity is expected to be unrevised at 4.9%. In addition, the Nov trade deficit is expected to widen to -$44.10 billion. Finally, Nov factory offers are expected to increase by +1.6% m/m. On Friday, Dec PPI final demand is expected to ease to +2.8% y/y from +3.0% y/y in Nov, and Dec PPI ex-food and energy is expected to ease to +2.9% y/y from +3.0% y/y in Nov. Also, the Jan MNI Chicago PMI is expected to climb by +0.8 to 43.5.
Q4 earnings season is in full swing, with 102 of the S&P 500 companies scheduled to report earnings this week. Microsoft, Meta Platforms, and Tesla report earnings results after today’s close, and Apple reports after the close on Thursday. Earnings have been a positive factor for stocks, with 81% of the 83 S&P 500 companies that have reported beating expectations. According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4. Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.
The markets are discounting a 3% chance of a -25 bp rate cut at the conclusion of today’s FOMC meeting.
Overseas stock markets are mixed today. The Euro Stoxx 50 fell from a 1.5-week high and is down by -0.83%. China’s Shanghai Composite rose to a 2-week high and closed up +0.27%. Japan’s Nikkei Stock 225 closed up +0.05%.
Interest Rates
March 10-year T-notes (ZNH6) today are down by -4 ticks. The 10-year T-note yield is up +2.2 bp to 4.255%. Today’s rally in the S&P 500 to a new record high is curbing safe-haven demand for T-notes. Also, long liquidation and position squaring are weighing on T-notes ahead of the FOMC decision later today.
European government bond yields are mixed today. The 10-year German bund yield is down -1.3 bp to 2.862%. The 10-year UK gilt yield rose to a 5-week high of 4.546% and is up by +1.9 bp at 4.544%.
The German Feb GfK consumer confidence index rose by +2.8 to -24.1, stronger than expectations of -25.5.
Austrian central bank governor Kocher said the ECB would need to consider another interest rate cut if further increases in the euro's value were large enough to lower inflation projections.
Swaps are discounting a 0% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
Chip makers and AI infrastructure stocks are rallying today after positive earnings results from ASML Holding NV, Seagate Technology Holdings Plc, and Texas Instruments, signaling continued strong AI spending. Seagate Technology Holdings Plc (STX) is up more than +17% to lead gainers in the S&P 500 and the Nasdaq 100. Also, Intel (INTC), Western Digital (WDC), and Texas Instruments (TXN) are up more than +8%. In addition, Microchip Technology (MCHP) is up more than +6%, and Sandisk (SNDK) and Micron Technology (MU) are up more than +5%. Finally, NXP Semiconductors NV (NXPI) and ON Semiconductor Corp (ON) are up more than +4%, and Analog Devices (ADI) is up more than +3%.
F5 Inc. (FFIV) is up more than +7% after reporting Q4 net revenue of $822.5 million, well above the consensus of $758.8 million, and raised its full-year revenue forecast to +5% to +6% from a previous estimate of 0% to +4%.
Elevance Health (ELV) is up more than +5% after it said it will allocate $2.3 billion to share repurchases this year.
AT&T (T) is up more than +3% after reporting Q4 revenue of $33.5 billion, stronger than the consensus of $32.83 billion.
PPG Industries (PPG) is up more than +3% after reporting Q4 net sales of $3.91 billion, above the consensus of $3.78 billion.
MSCI Inc. (MSCI) is up more than +2% after reporting Q4 total recurring subscriptions of $2.45 billion, better than the consensus of $2.44 billion.
Starbucks (SBUX) is up more than +2% after reporting Q1 US comparable same-store sales rose +4%, stronger than the consensus of +1.88%, and forecasting full-year comparable sales of at least +3%, above the consensus of +2.83%.
Amphenol (APH) is down more than -13% to lead losers in the S&P 500 after Bloomberg Intelligence said the company’s sales forecast “underwhelms,” and after a robust Q4 beat, which suggests potential demand pull-forward.
Textron (TXT) is down more than -9% after forecasting 2026 adjusted EPS of $6.40 to $6.60, below the consensus of $6.86.
Qorvo (QRVO) is down more than -5% after forecasting Q4 adjusted EPS of $1.05 to $1.35, weaker than the consensus of $1.37.
Otis Worldwide (OTIS) is down more than -3% after reporting Q4 net sales of $3.80 billion, below the consensus of $3.87 billion.
Danaher (DHR) is down more than -2% after forecasting full-year adjusted EPS of $8.35 to $8.50, the midpoint below the consensus of $8.46.
PayPal Holdings (PYPL) is down more than -1% after Rothschild & Co Redburn downgraded the stock to sell from neutral with a price target of $50.
Earnings Reports(1/28/2026)
Amphenol Corp (APH), ASML Holding NV (ASML), AT&T Inc (T), Automatic Data Processing Inc (ADP), CH Robinson Worldwide Inc (CHRW), Corning Inc (GLW), Danaher Corp (DHR), Elevance Health Inc (ELV), Fair Isaac Corp (FICO), GE Vernova Inc (GEV), General Dynamics Corp (GD), International Business Machine (IBM), Lam Research Corp (LRCX), Las Vegas Sands Corp (LVS), Lennox International Inc (LII), Meta Platforms Inc (META), Microsoft Corp (MSFT), MSCI Inc (MSCI), NVR Inc (NVR), Otis Worldwide Corp (OTIS), Raymond James Financial Inc (RJF), ServiceNow Inc (NOW), Southwest Airlines Co (LUV), Starbucks Corp (SBUX), Tesla Inc (TSLA), Textron Inc (TXT), United Rentals Inc (URI), Waste Management Inc (WM).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Mixed After the Fed Pauses Rate Cuts

Key Points
The coffee specialist returned to positive traffic growth at its U.S. stores during fiscal Q1.
Starbucks' global comparable store sales growth rate accelerated.
Management said comparable store sales trends remain strong in January.
Starbucks (NASDAQ: SBUX) stock has been on a big run this year. And that momentum just received another boost from the company's strong fiscal first-quarter earnings report.
For investors worried about Starbucks' turnaround efforts, they could breathe a sigh of relief on Wednesday. Not only did the company's comparable-store sales accelerate, but it also returned to positive traffic trends at its U.S. stores.
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"Our Q1 results demonstrate our 'Back to Starbucks' strategy is working, and we believe we're ahead of schedule," said Starbucks CEO Brian Niccol in the company's fiscal first-quarter earnings release.
A clear inflection point
It was already clear by the end of fiscal 2025 that Starbucks' business was improving. Revenue in its fiscal fourth quarter of 2025, for instance, grew 5% year over year. This was a notable acceleration from growth rates earlier in the year. For instance, revenue in its fiscal second quarter rose only 2% year over year. And its full-year fiscal 2024 revenue grew just 1% year over year.
But the most notable inflection in Starbucks' business in fiscal Q1 has been in its comparable store sales metric that measures sales growth at stores open for more than one year, as well as e-commerce sales. Starbucks' comparable store sales grew 4% year over year in fiscal Q1, an acceleration from just 1% growth in the prior quarter.
Also encouraging was Starbucks' acceleration in U.S. comparable store sales. Comparable store sales in Starbucks' home market rose 4% year over year in fiscal Q1, up from flat performance in fiscal Q4. Even more, behind Starbucks' 4% growth in comparable store sales in the U.S. in the first quarter of fiscal 2026 was a 3% increase in comparable transactions and a 1% increase in average ticket. This 3% growth in comparable transactions importantly suggests that the traffic in its stores has turned positive. This is a nice change from Starbucks' 1% year-over-year decline in comparable transactions and fiscal Q4.
This inflection in Starbucks' business led to robust overall fiscal first-quarter results, with revenue rising 6% year over year to $9.9B.
Starbucks' earnings per share, however, fell 62% year over year as the company's investments to support its turnaround plans weighed on results. Tariffs and elevated coffee pricing also hurt profitability, management said.
Management's turnaround plan is taking hold
Ultimately, results like this suggest the Starbucks restructuring effort is working, as CFO Cathy Smith explained in the company's fiscal first quarter update, these results give the company a "clear line of sight to translating topline strength into sustainable earnings growth that positions us for long-term profitable growth."
Importantly for investors, management put numbers behind this optimistic statement. First of all, management said in itsearnings callthat its comparable store sales trends continued to be strong in January. Further, the company guided for comparable store sales to grow "3% or greater" both globally and in the U.S. And management said it expects a similar growth rate for its total revenue, even as it opens 600 to 650 new coffeehouses (net of any closures).
While these results were impressive, the turnaround may already be priced into the stock. After all, Starbucks' forward price-to-earnings ratio is about 40. This means that shares trade at 40 times analysts' consensus earnings per share forecast for the next 12 months. A valuation like this bakes in robust single-digit revenue growth and even prices in a significant expansion in the company's operating margin as restructuring costs roll off.
Even though Starbucks' fiscal first-quarter results make it clear that the company's turnaround efforts are working, I'd still stay away from the stock because the market seems to already be pricing in the success of its "Back to Starbucks" plan.
For investors interested in the stock, the best course of action for now may be to tune in to the company's Investor Day presentation tomorrow to see if management articulates a clear path back to consistent double-digit earnings-per-share growth over the long haul. Without an earnings profile like this, the stock should probably be avoided -- at least at its current valuation.
Should you buy stock in Starbucks right now?
Before you buy stock in Starbucks, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Starbucks wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 28, 2026.
Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Starbucks Investors Just Got Good News About the Company's Turnaround Efforts

The S&P 500 Index ($SPX) (SPY) today is up +0.03%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.02%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.43%. March E-mini S&P futures (ESH26) are up +0.02%, and March E-mini Nasdaq futures (NQH26) are up +0.38%.
Stock indexes are moving higher today, with the S&P 500 posting a new all-time high and the Nasdaq 100 posting a 3-month high. Strength in chipmakers and AI infrastructure stocks is leading the overall market higher today after a sharp increase in orders at ASML Holding NV added fresh optimism to the sustainability of artificial intelligence spending. ASML Holding NV, the only producer of lithography machines that are needed to make advanced semiconductors, reported today that Q4 bookings were a record 13.2 billion euros, well above the consensus of 6.85 billion euros. Also, better-than-expected earnings results from Seagate Technology Holdings NV and Texas Instruments added to the bullish market sentiment.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
However, stocks fell back from their best levels amid long liquidation and position squaring ahead of today’s FOMC meeting results and remarks from Fed Chair Powell. The markets are expecting the FOMC to keep the fed funds target range unchanged at 3.50% to 3.75%.
The dollar index (DXY00) is moving higher today, recovering some of Tuesday’s plunge to a nearly 4-year low. The dollar sank on Tuesday after President Trump said that he's comfortable with the recent weakness in the dollar. Meanwhile, Mr. Trump’s comments have pushed gold prices (GCG26) up more than +3% today to a new all-time high.
WTI crude oil (CLH26) climbed to a 4-month high today after President Trump said in a social media post that he wants Iran to come to the table and negotiate a “fair and equitable deal with No Nuclear Weapons.” He warned Iran that time is running out to make a deal with the US, noting that a fleet of US warships entering the region is ready to complete their mission “with speed and violence.”
US MBA mortgage applications fell -8.5% in the week ended January 23, with the purchase mortgage sub-index down -0.4% and the refinancing mortgage sub-index down 15.7%. The average 30-year fixed rate mortgage rose +8 bp to 6.24% from 6.16% in the prior week.
Threats to stocks and the dollar remain. President Trump has threatened new 100% tariffs on US imports from Canada, the possibility of a US government shutdown over ICE funding, and lingering concerns about Greenland. In addition, there is political uncertainty about the Fed, as the FOMC is expected to leave rates unchanged at today’s meeting, potentially drawing new threats from Mr. Trump for refusing to cut rates further.
The risk of another partial government shutdown is negative for stocks. Senate Democrats threatened to block a government funding deal over Department of Homeland Security/ICE funding after the ICE shooting of an ICU nurse in Minnesota on Saturday. There could be a partial government shutdown when the current stopgap funding measure expires this Friday.
The market’s focus this week will be on new tariff news and the prospects for a continued resolution (CR) to fund the government. Later today, the FOMC is expected to keep the fed funds target range unchanged at 3.50%-3.75%. Post-FOMC-meeting comments from Fed Chair Powell will also be scrutinized for clues about the future of Fed policy. On Thursday, initial weekly unemployment claims are expected to increase by 5,000 to 205,000. Also, Q3 nonfarm productivity is expected to be unrevised at 4.9%. In addition, the Nov trade deficit is expected to widen to -$44.10 billion. Finally, Nov factory offers are expected to increase by +1.6% m/m. On Friday, Dec PPI final demand is expected to ease to +2.8% y/y from +3.0% y/y in Nov, and Dec PPI ex-food and energy is expected to ease to +2.9% y/y from +3.0% y/y in Nov. Also, the Jan MNI Chicago PMI is expected to climb by +0.8 to 43.5.
Q4 earnings season is in full swing, with 102 of the S&P 500 companies scheduled to report earnings this week. Microsoft, Meta Platforms, and Tesla report earnings results after today’s close, and Apple reports after the close on Thursday. Earnings have been a positive factor for stocks, with 81% of the 83 S&P 500 companies that have reported beating expectations. According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4. Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.
The markets are discounting a 3% chance of a -25 bp rate cut at the conclusion of today’s FOMC meeting.
Overseas stock markets are mixed today. The Euro Stoxx 50 fell from a 1.5-week high and is down by -0.83%. China’s Shanghai Composite rose to a 2-week high and closed up +0.27%. Japan’s Nikkei Stock 225 closed up +0.05%.
Interest Rates
March 10-year T-notes (ZNH6) today are down by -4 ticks. The 10-year T-note yield is up +2.2 bp to 4.255%. Today’s rally in the S&P 500 to a new record high is curbing safe-haven demand for T-notes. Also, long liquidation and position squaring are weighing on T-notes ahead of the FOMC decision later today.
European government bond yields are mixed today. The 10-year German bund yield is down -1.3 bp to 2.862%. The 10-year UK gilt yield rose to a 5-week high of 4.546% and is up by +1.9 bp at 4.544%.
The German Feb GfK consumer confidence index rose by +2.8 to -24.1, stronger than expectations of -25.5.
Austrian central bank governor Kocher said the ECB would need to consider another interest rate cut if further increases in the euro's value were large enough to lower inflation projections.
Swaps are discounting a 0% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
Chip makers and AI infrastructure stocks are rallying today after positive earnings results from ASML Holding NV, Seagate Technology Holdings Plc, and Texas Instruments, signaling continued strong AI spending. Seagate Technology Holdings Plc (STX) is up more than +17% to lead gainers in the S&P 500 and the Nasdaq 100. Also, Intel (INTC), Western Digital (WDC), and Texas Instruments (TXN) are up more than +8%. In addition, Microchip Technology (MCHP) is up more than +6%, and Sandisk (SNDK) and Micron Technology (MU) are up more than +5%. Finally, NXP Semiconductors NV (NXPI) and ON Semiconductor Corp (ON) are up more than +4%, and Analog Devices (ADI) is up more than +3%.
F5 Inc. (FFIV) is up more than +7% after reporting Q4 net revenue of $822.5 million, well above the consensus of $758.8 million, and raised its full-year revenue forecast to +5% to +6% from a previous estimate of 0% to +4%.
Elevance Health (ELV) is up more than +5% after it said it will allocate $2.3 billion to share repurchases this year.
AT&T (T) is up more than +3% after reporting Q4 revenue of $33.5 billion, stronger than the consensus of $32.83 billion.
PPG Industries (PPG) is up more than +3% after reporting Q4 net sales of $3.91 billion, above the consensus of $3.78 billion.
MSCI Inc. (MSCI) is up more than +2% after reporting Q4 total recurring subscriptions of $2.45 billion, better than the consensus of $2.44 billion.
Starbucks (SBUX) is up more than +2% after reporting Q1 US comparable same-store sales rose +4%, stronger than the consensus of +1.88%, and forecasting full-year comparable sales of at least +3%, above the consensus of +2.83%.
Amphenol (APH) is down more than -13% to lead losers in the S&P 500 after Bloomberg Intelligence said the company’s sales forecast “underwhelms,” and after a robust Q4 beat, which suggests potential demand pull-forward.
Textron (TXT) is down more than -9% after forecasting 2026 adjusted EPS of $6.40 to $6.60, below the consensus of $6.86.
Qorvo (QRVO) is down more than -5% after forecasting Q4 adjusted EPS of $1.05 to $1.35, weaker than the consensus of $1.37.
Otis Worldwide (OTIS) is down more than -3% after reporting Q4 net sales of $3.80 billion, below the consensus of $3.87 billion.
Danaher (DHR) is down more than -2% after forecasting full-year adjusted EPS of $8.35 to $8.50, the midpoint below the consensus of $8.46.
PayPal Holdings (PYPL) is down more than -1% after Rothschild & Co Redburn downgraded the stock to sell from neutral with a price target of $50.
Earnings Reports(1/28/2026)
Amphenol Corp (APH), ASML Holding NV (ASML), AT&T Inc (T), Automatic Data Processing Inc (ADP), CH Robinson Worldwide Inc (CHRW), Corning Inc (GLW), Danaher Corp (DHR), Elevance Health Inc (ELV), Fair Isaac Corp (FICO), GE Vernova Inc (GEV), General Dynamics Corp (GD), International Business Machine (IBM), Lam Research Corp (LRCX), Las Vegas Sands Corp (LVS), Lennox International Inc (LII), Meta Platforms Inc (META), Microsoft Corp (MSFT), MSCI Inc (MSCI), NVR Inc (NVR), Otis Worldwide Corp (OTIS), Raymond James Financial Inc (RJF), ServiceNow Inc (NOW), Southwest Airlines Co (LUV), Starbucks Corp (SBUX), Tesla Inc (TSLA), Textron Inc (TXT), United Rentals Inc (URI), Waste Management Inc (WM).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Supported by Solid Tech Earnings

The S&P 500 Index ($SPX) (SPY) today is up +0.28%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.04%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.81%. March E-mini S&P futures (ESH26) are up +0.25%, and March E-mini Nasdaq futures (NQH26) are up +0.79%.
Stock indexes are moving higher today, with the S&P 500 posting a new all-time high and the Nasdaq 100 posting a 3-month high. Strength in chipmakers and AI infrastructure stocks is leading the overall market higher today after a sharp increase in orders at ASML Holding NV added fresh optimism to the sustainability of artificial intelligence spending. ASML Holding NV, the only producer of lithography machines that are needed to make advanced semiconductors, reported today that Q4 bookings were a record 13.2 billion euros, well above the consensus of 6.85 billion euros. Also, better-than-expected earnings results from Seagate Technology Holdings NV and Texas Instruments added to the bullish market sentiment.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
The dollar index (DXY00) is slightly higher today, recovering some of Tuesday’s plunge to a nearly 4-year low. The dollar sank on Tuesday after President Trump said that he's comfortable with the recent weakness in the dollar. Meanwhile, Mr. Trump’s comments have pushed gold prices (GCG26) up more than +3% today to a new all-time high.
WTI crude oil (CLH26) climbed to a 4-month high today after President Trump said in a social media post that he wants Iran to come to the table and negotiate a “fair and equitable deal with No Nuclear Weapons.” He warned Iran that time is running out to make a deal with the US, noting that a fleet of US warships entering the region is ready to complete their mission “with speed and violence.”
US MBA mortgage applications fell -8.5% in the week ended January 23, with the purchase mortgage sub-index down -0.4% and the refinancing mortgage sub-index down 15.7%. The average 30-year fixed rate mortgage rose +8 bp to 6.24% from 6.16% in the prior week.
Threats to stocks and the dollar remain. President Trump has threatened new 100% tariffs on US imports from Canada, the possibility of a US government shutdown over ICE funding, and lingering concerns about Greenland. In addition, there is political uncertainty about the Fed, as the FOMC is expected to leave rates unchanged at today’s meeting, potentially drawing new threats from Mr. Trump for refusing to cut rates further.
The risk of another partial government shutdown is negative for stocks. Senate Democrats threatened to block a government funding deal over Department of Homeland Security/ICE funding after the ICE shooting of an ICU nurse in Minnesota on Saturday. There could be a partial government shutdown when the current stopgap funding measure expires this Friday.
The market’s focus this week will be on new tariff news and the prospects for a continued resolution (CR) to fund the government. Later today, the FOMC is expected to keep the fed funds target range unchanged at 3.50%-3.75%. Post-meeting comments from Fed Chair Powell on Wednesday will also be scrutinized for clues about the future of Fed policy. On Thursday, initial weekly unemployment claims are expected to increase by 5,000 to 205,000. Also, Q3 nonfarm productivity is expected to be unrevised at 4.9%. In addition, the Nov trade deficit is expected to widen to -$44.10 billion. Finally, Nov factory offers are expected to increase by +1.6% m/m. On Friday, Dec PPI final demand is expected to ease to +2.8% y/y from +3.0% y/y in Nov, and Dec PPI ex-food and energy is expected to ease to +2.9% y/y from +3.0% y/y in Nov. Also, the Jan MNI Chicago PMI is expected to climb by +0.8 to 43.5.
Q4 earnings season is in full swing, with 102 of the S&P 500 companies scheduled to report earnings this week. Microsoft, Meta Platforms, and Tesla report earnings results after today’s close, and Apple reports after the close on Thursday. Earnings have been a positive factor for stocks, with 81% of the 83 S&P 500 companies that have reported beating expectations. According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4. Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.
The markets are discounting a 3% chance of a -25 bp rate cut at the conclusion of today’s FOMC meeting.
Overseas stock markets are mixed today. The Euro Stoxx 50 fell from a 1.5-week high and is down -0.52%. China’s Shanghai Composite rose to a 2-week high and closed up +0.27%. Japan’s Nikkei Stock 225 closed up +0.05%.
Interest Rates
March 10-year T-notes (ZNH6) today are down by -2 ticks. The 10-year T-note yield is up +1.2 bp to 4.245%. Today’s rally in the S&P 500 to a new record high is curbing safe-haven demand for T-notes. Also, long liquidation and position squaring are weighing on T-notes ahead of the FOMC decision later today.
European government bond yields are mixed today. The 10-year German bund yield is down -2.5 bp to 2.849%. The 10-year UK gilt yield rose to a 5-week high of 4.540% and is up by +0.4 bp at 4.529%.
The German Feb GfK consumer confidence index rose by +2.8 to -24.1, stronger than expectations of -25.5.
Austrian central bank governor Kocher said the ECB would need to consider another interest rate cut if further increases in the euro's value were large enough to lower inflation projections.
Swaps are discounting a 0% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
Chip makers and AI infrastructure stocks are rallying today after positive earnings results from ASML Holding NV, Seagate Technology Holdings Plc, and Texas Instruments, signaling continued strong AI spending. Seagate Technology Holdings Plc (STX) is up more than +17% to lead gainers in the S&P 500 and the Nasdaq 100. Also, Intel (INTC) and Sandisk (SNDK) are up more than +8%, and Western Digital (WDC), Microchip Technology (MCHP), and Texas Instruments (TXN) are up more than +6%. In addition, Micron Technology (MU) and NXP Semiconductors NV (NXPI) are up more than +3%, and Analog Devices (ADI) and Marvell Technology (MRVL) are up more than +2%.
F5 Inc. (FFIV) is up more than +8% after reporting Q4 net revenue of $822.5 million, well above the consensus of $758.8 million, and raised its full-year revenue forecast to +5% to +6% from a previous estimate of 0% to +4%.
Starbucks (SBUX) is up more than +4% after reporting Q1 US comparable same-store sales rose +4%, stronger than the consensus of +1.88%, and forecasting full-year comparable sales of at least +3%, above the consensus of +2.83%.
Brinker International (EAT) is up more than +3% after reporting Q2 adjusted EPS of $2.87, stronger than the consensus of $2.62.
AT&T (T) is up more than +2% after reporting Q4 revenue of $33.5 billion, stronger than the consensus of $32.83 billion.
GE Vernova (GEV) is up more than +2% after raising its 2026 revenue forecast to $44 billion-$45 billion from a previous forecast of $41 billion-$42 billion.
Corning (GLW) is up more than +2% after reporting Q4 core sales of $4.41 billion, greater than the consensus of $4.36 billion.
Amphenol (APH) is down more than -13% to lead losers in the S&P 500 after Bloomberg Intelligence said the company’s sales forecast “underwhelms,” and after a robust Q4 beat, which suggests potential demand pull-forward.
Textron (TXT) is down more than -7% after forecasting 2026 adjusted EPS of $6.40 to $6.60, below the consensus of $6.86.
Qorvo (QRVO) is down more than -6% after forecasting Q4 adjusted EPS of $1.05 to $1.35, weaker than the consensus of $1.37.
Otis Worldwide (OTIS) is down more than -5% after reporting Q4 net sales of $3.80 billion, below the consensus of $3.87 billion.
Danaher (DHR) is down more than -1% after forecasting full-year adjusted EPS of $8.35 to $8.50, the midpoint below the consensus of $8.46
Earnings Reports(1/28/2026)
Amphenol Corp (APH), ASML Holding NV (ASML), AT&T Inc (T), Automatic Data Processing Inc (ADP), CH Robinson Worldwide Inc (CHRW), Corning Inc (GLW), Danaher Corp (DHR), Elevance Health Inc (ELV), Fair Isaac Corp (FICO), GE Vernova Inc (GEV), General Dynamics Corp (GD), International Business Machine (IBM), Lam Research Corp (LRCX), Las Vegas Sands Corp (LVS), Lennox International Inc (LII), Meta Platforms Inc (META), Microsoft Corp (MSFT), MSCI Inc (MSCI), NVR Inc (NVR), Otis Worldwide Corp (OTIS), Raymond James Financial Inc (RJF), ServiceNow Inc (NOW), Southwest Airlines Co (LUV), Starbucks Corp (SBUX), Tesla Inc (TSLA), Textron Inc (TXT), United Rentals Inc (URI), Waste Management Inc (WM).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Rally on AI Spending Optimism

Today’s main event in market trading will likely be the conclusion of the latest Federal Open Market Committee (FOMC) meeting, which finishes with a new monetary policy statement (2pm ET) and a press conference from Fed Chair Jerome Powell (@ 2:30pm). No changes are expected from the current 3.50-3.75% Fed funds rate, but this will be the first presser since the U.S. Dept. of Justice launched a criminal campaign against Powell for $2.5 billion spent on Federal Reserve building renovations.
Powell himself has already publicly addressed these charges, calling this “unprecedented action” part of a broader attack from President Trump for not bringing down interest rates sooner. Last year, both men appeared before cameras where the president directly accused Powell of misusing funds and the chairman accused the president of conflating numbers.
One of the voting Fed governors, Stephen Miran, is actually on loan from the White House where he has served as Chair of the Council of Economic Advisors for the past year. Since his installment into the FOMC, he has voted for a 50 basis-point (bps) interest rate cut at each meeting, and is widely expected to do the same today — likely as the only voting member to do so. Earlier this month, Miran said he’s looking for rate cuts of 150 bps this year, which would bring the Fed funds rate to 2.00-2.25%, or roughly 50 bps lower than the current Inflation Rate of 2.7%.
Since September 2024, the Fed funds rate has come down 175 bps from multi-year highs of 5.25-5.50%, but only one or two 25 bps cuts are expected by most Fed analysts for 2026. Of course, unforeseen circumstances like the bottom falling out of the labor market or a drastic lowering of inflation across multiple metrics can re-set this table. But as of now, we’re seeing both labor and inflation hover within generally acceptable levels.
Quick Earnings Rundown This Morning: SBUX, T & More
Starbucks SBUX missed earnings estimates this morning by 2 cents per share to $0.58 reported for fiscal Q1. Revenues in the quarter, however, beat the Zacks consensus estimate by +2.82% to $9.92 billion — also above the $9.4 billion reported in the year-ago quarter. CEO Brian Niccol’s tenure is beginning to demonstrate traffic growth, and shares are up +7.5% in today’s pre-market.
AT&T T shares are up modestly following its Q4 results hitting the tape this morning, with earnings of 52 cents per share outpacing estimates by 4 cents (but still shy the 54 cents reported in the year-ago quarter), for the telecom giant’s third earnings beat in the last five quarters. Revenues posted a +2.24% positive surprise to $33.47 billion.
The parent company for apparel brands like Vans, The North Face and Timberland, V.F. Corp. VFC, reported perhaps the biggest earning beat of the morning: $0.58 per share topped the $0.43 expected for a +34.9% outperformance in its fiscal Q3. Revenues of $2.88 billion surpassed estimates by +4.26%, but a cautious outlook for Q4, particularly among Vans sales, has slid the stock -5% in the pre-market, giving back a chunk of its +12% gains year to date.
The Progressive PGR and Automatic Data Processing ADP also reported quarterly results this morning, and beat earnings estimates by +5.2% and +1.6%, respectively. Progressive shares are up marginally on this news, while ADP is descending -2.9% directly ahead of the opening bell.
Earnings Reports After the Close: MSFT, TSLA, IBM
Once normal trading ends this Hump Day, Zacks Rank #2 (Buy)-rated Microsoft MSFT, which only has one earnings miss over the past five years, is expected to have grown earnings by +20.1% year over year, and revenues of +15.2%. The stock remains off the all-time highs set before Halloween last year, but have come up more than $40 per share since its near-term low just one week ago.
Tesla TSLA, which is still trying to dig out from its relative underperformance compared to other companies in the “Mag 7,” is expected to bring negative earnings of -38.4% from a year ago on revenues anticipated to be -2.2% from Q4 2025. The Zacks Rank #4 (Sell)-rated American EV leader has also missed earnings in three of its last four quarters.
Tech giant IBM IBM also puts out Q4 earnings after today’s closing bell, and the Zacks Rank #3 (Hold)-rated multinational monolith is currently riding an 11-quarter streak of earnings beats. The company is expected to grow earnings by +10.5% from a year ago on revenues anticipated to reach +9.4%. Shares are flat year to date, but up +30% from a year ago.
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AT&T Inc. (T) : Free Stock Analysis Report
V.F. Corporation (VFC) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Earnings Drive Early Market Moves

Starbucks Corporation SBUX reported mixed first-quarter fiscal 2026 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. The top line increased, but the bottom line declined from the prior-year quarter’s figure.
Following the results, the company’s shares are up 8% in the pre-market trading session today. Starbucks’ management said first-quarter fiscal 2026 results show the “Back to Starbucks” strategy is gaining traction sooner than expected, with sales improving as more customers return and visit often. The company is confident this momentum will translate into sustainable earnings growth and support long-term profitability.
Discussion on Q1 Earnings, Revenues & Comps of SBUX
In the fiscal first quarter, the company reported earnings per share (EPS) of 56 cents, missing the Zacks Consensus Estimate of 58 cents. The bottom line also decreased 19% from 69 cents reported in the prior-year quarter.
Net revenues of $9.91 billion beat the consensus mark of $9.64 billion. The reported value was up 5.5% year over year.
Global comparable store sales increased 4% year over year. The upside was backed by a 3% increase in comparable transactions and a 1% increase in average ticket.
During first-quarter fiscal 2026, the company added 128 net new locations, bringing the total store count to 41,118, with 52% operated by it and 48% run by licensed partners.
Starbucks Corporation Price, Consensus and EPS Surprise
Starbucks’ Overall Margin Contracts in Q1
The company’s non-GAAP operating margin contracted 180 basis points (bps) to 10.1% from the prior-year quarter. This was largely due to increased labor spending to support the “Back to Starbucks” strategy, along with inflationary headwinds stemming from tariffs and higher coffee costs.
SBUX’s Segmental Details
Starbucks has three reportable operating segments: North America, International and Channel Development.
North America: The segmental net revenues were $7.28 billion, up 3% year over year. Its comparable store sales rose 4% against a decline of 4% in the prior-year quarter. Average transactions increased 3%, whereas the change in tickets rose 1% year over year.
Operating margin contracted 480 bps to 11.9% from 16.7% in the prior-year quarter.
International: This segment’s net revenues of $2.06 billion increased 10% year over year. Comparable store sales increased 5% in contrast to a 4% fall reported in the prior-year quarter. Average transactions increased 3%, whereas the change in tickets fell 2% year over year.
Operating margin expanded 100 bps year over year to 13.7%. The improvement was mainly supported by sales leverage and reduced store operating as well as depreciation and amortization expenses, following the classification of Starbucks’ China retail assets as held for sale and the halt of related depreciation. These benefits were partly offset by restructuring charges tied to store closures and ongoing inflationary pressures, largely from higher coffee costs.
In the fiscal first quarter, comps in China were up 7% against a 6% decline reported in the prior-year quarter. Transactions rose 5%, whereas the change in tickets was up 2% year over year.
Channel Development: Net revenues in the segment increased 20% year over year to $522.7 million. The upside was driven by an increase in contributions to the Global Coffee Alliance.
Operating margin declined to 41.3% from 47.7% a year earlier, mainly due to an unfavorable sales mix and higher global product costs, though this was partly cushioned by higher income from the North American Coffee Partnership joint venture.
SBUX’s Financial Details
The company ended the fiscal first quarter with cash and cash equivalents of $3.41 billion compared with $3.22 billion at the end of Sept. 28, 2025. As of Dec. 28, long-term debt totaled $14.6 billion, almost flat compared with Sept. 28, 2025.
Meanwhile, management declared a quarterly cash dividend of 62 cents per share. The dividend is payable on Feb. 27, 2026, to its shareholders of record as of Feb. 13.
Fiscal 2026 Outlook of SBUX
Starbucks has outlined its expectations for fiscal 2026, signaling steady growth and gradual margin improvement. The company anticipates global and U.S. comparable store sales to rise at least 3%, with overall net revenues increasing at a similar pace. Management also expects a modest year-over-year expansion in non-GAAP operating margin.
Non-GAAP earnings per share are projected to be between $2.15 and $2.40. In terms of expansion, Starbucks plans to open roughly 600 to 650 net new coffeehouses worldwide across both its company-operated and licensed formats.
SBUX’s Zacks Rank
Starbucks currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the Zacks Retail-Wholesale sector are BJ's Restaurants, Inc. BJRI, Brinker International, Inc. EAT and Yum China Holdings, Inc. YUMC.
BJ's Restaurants currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BJ's Restaurants has gained 15.8% in the past six months. The Zacks Consensus Estimate for BJ's Restaurants' fiscal 2026 sales and EPS indicates a rise of 2.4% and 3.3%, respectively, year over year.
Brinker presently carries a Zacks Rank #2. The stock has declined 1.4% in the past six months.
The Zacks Consensus Estimate for EAT’s 2026 sales and EPS implies growth of 6.5% and 16.6%, respectively, from the year-ago levels.
Yum China presently carries a Zacks Rank #2. The stock has gained 7.9% in the past six months.
The Zacks Consensus Estimate for Yum China’s 2026 sales and EPS indicates an increase of 6.5% and 15.5%, respectively, from the year-ago levels.
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Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Starbucks Q1 Earnings Miss Estimates, Revenues Increase Y/Y, Stock Up

Wednesday, January 28th, 2026
Today’s main event in market trading will likely be the conclusion of the latest Federal Open Market Committee (FOMC) meeting, which finishes with a new monetary policy statement (2pm ET) and a press conference from Fed Chair Jerome Powell (@ 2:30pm). No changes are expected from the current 3.50-3.75% Fed funds rate, but this will be the first presser since the U.S. Dept. of Justice launched a criminal campaign against Powell for $2.5 billion spent on Federal Reserve building renovations.
Powell himself has already publicly addressed these charges, calling this “unprecedented action” part of a broader attack from President Trump for not bringing down interest rates sooner. Last year, both men appeared before cameras where the president directly accused Powell of misusing funds and the chairman accused the president of conflating numbers.
One of the voting Fed governors, Stephen Miran, is actually on loan from the White House where he has served as Chair of the Council of Economic Advisors for the past year. Since his installment into the FOMC, he has voted for a 50 basis-point (bps) interest rate cut at each meeting, and is widely expected to do the same today — likely as the only voting member to do so. Earlier this month, Miran said he’s looking for rate cuts of 150 bps this year, which would bring the Fed funds rate to 2.00-2.25%, or roughly 50 bps lower than the current Inflation Rate of 2.7%.
Since September 2024, the Fed funds rate has come down 175 bps from multi-year highs of 5.25-5.50%, but only one or two 25 bps cuts are expected by most Fed analysts for 2026. Of course, unforeseen circumstances like the bottom falling out of the labor market or a drastic lowering of inflation across multiple metrics can re-set this table. But as of now, we’re seeing both labor and inflation hover within generally acceptable levels.
Quick Earnings Rundown This Morning: SBUX, T & More
Starbucks SBUX missed earnings estimates this morning by 2 cents per share to $0.58 reported for fiscal Q1. Revenues in the quarter, however, beat the Zacks consensus estimate by +2.82% to $9.92 billion — also above the $9.4 billion reported in the year-ago quarter. CEO Brian Niccol’s tenure is beginning to demonstrate traffic growth, and shares are up +7.5% in today’s pre-market. For more on SBUX’s earnings, click here.
AT&T T shares are up modestly following its Q4 results hitting the tape this morning, with earnings of 52 cents per share outpacing estimates by 4 cents (but still shy the 54 cents reported in the year-ago quarter), for the telecom giant’s third earnings beat in the last five quarters. Revenues posted a +2.24% positive surprise to $33.47 billion. For more on T’s earnings, click here.
The parent company for apparel brands like Vans, The North Face and Timberland, V.F. Corp. VFC, reported perhaps the biggest earning beat of the morning: $0.58 per share topped the $0.43 expected for a +34.9% outperformance in its fiscal Q3. Revenues of $2.88 billion surpassed estimates by +4.26%, but a cautious outlook for Q4, particularly among Vans sales, has slid the stock -5% in the pre-market, giving back a chunk of its +12% gains year to date. For more on VFC’s earnings, click here.
The Progressive PGR and Automatic Data Processing ADP also reported quarterly results this morning, and beat earnings estimates by +5.2% and +1.6%, respectively. Progressive shares are up marginally on this news, while ADP is descending -2.9% directly ahead of the opening bell.
Earnings Reports After the Close: MSFT, TSLA, IBM
Once normal trading ends this Hump Day, Zacks Rank #2 (Buy)-rated Microsoft MSFT, which only has one earnings miss over the past five years, is expected to have grown earnings by +20.1% year over year, and revenues of +15.2%. The stock remains off the all-time highs set before Halloween last year, but have come up more than $40 per share since its near-term low just one week ago.
Tesla TSLA, which is still trying to dig out from its relative underperformance compared to other companies in the “Mag 7,” is expected to bring negative earnings of -38.4% from a year ago on revenues anticipated to be -2.2% from Q4 2025. The Zacks Rank #4 (Sell)-rated American EV leader has also missed earnings in three of its last four quarters.
Tech giant IBM IBM also puts out Q4 earnings after today’s closing bell, and the Zacks Rank #3 (Hold)-rated multinational monolith is currently riding an 11-quarter streak of earnings beats. The company is expected to grow earnings by +10.5% from a year ago on revenues anticipated to reach +9.4%. Shares are flat year to date, but up +30% from a year ago.
Questions or comments about this article and/or author? Click here>>
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Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.
Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.
Access the Report Free Now >>
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AT&T Inc. (T) : Free Stock Analysis Report
V.F. Corporation (VFC) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Big Earnings Day Sandwich Fed's Interest Rate Decision

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Starbucks (SBUX) Q1 2026 Earnings Call Transcript

Starbucks (SBUX) came out with quarterly earnings of $0.56 per share, missing the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -2.90%. A quarter ago, it was expected that this coffee chain would post earnings of $0.55 per share when it actually produced earnings of $0.52, delivering a surprise of -5.45%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
Starbucks, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $9.92 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.82%. This compares to year-ago revenues of $9.4 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Starbucks shares have added about 13.7% since the beginning of the year versus the S&P 500's gain of 1.9%.
What's Next for Starbucks?
While Starbucks has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Starbucks was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.42 on $9.03 billion in revenues for the coming quarter and $2.34 on $38.33 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Shake Shack (SHAK), has yet to report results for the quarter ended December 2025.
This burger chain is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +38.5%. The consensus EPS estimate for the quarter has been revised 25.4% lower over the last 30 days to the current level.
Shake Shack's revenues are expected to be $403.33 million, up 22.7% from the year-ago quarter.
Should You Invest in Starbucks Corporation (SBUX)?
Before you invest in Starbucks Corporation (SBUX), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Starbucks Corporation (SBUX) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	58.72 20.72
Price/Sales	2.93 0.69
P/B	0.00 1.91
P/FCF	44.68 15.39

Indicator	TTM Median
ROE	0.00 14.63
ROA	5.75 5.12
ROI	28.62 8.44
Net Worth	109.10 0.90
Quick Ratio	0.51 0.88
Current Ratio	0.72 1.45

Indicator	TTM Median
Net Profit Margin	4.99 5.72
Operating Margin	7.90 8.45
Gross Margin	68.65 38.39
Return on tangible equity	0.00 21.87

Indicator	TTM Median
EPS	0.50 0.42
EPS Forecast	0.57 0.38
Revenue	9.57B 185.00M
Gross Profit	6.50B —
EBITDA	734.00M —

Starbucks Corporation

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue