Coffee chain Starbucks (SBUX) is scheduled to announce its results for the second quarter of Fiscal 2026 after the market closes on Tuesday, April 28. SBUX stock has risen more than 16% year-to-date, as the company’s turnaround efforts are driving improvements in its performance. According to TipRanks’ Options Tool, options traders expect about a 6.92% move in either direction in SBUX stock in reaction to Q2 FY26 earnings. This implied move is higher than Starbucks stock’s average post-earnings move (in absolute terms) of 1.92% over the past four quarters.
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Meanwhile, Wall Street expects Starbucks to report EPS (earnings per share) of $0.42 for Q2 FY26, reflecting about 2.4% year-over-year growth. Revenue is expected to grow by 4.7% to $9.17 billion.
Investors will look forward to management’s updates on the progress of the company’s turnaround initiatives and the demand backdrop in the U.S. and international markets.
Analysts’ Views Ahead of Starbucks’ Q2 Earnings
Recently, UBS analyst Dennis Geiger reiterated a Hold rating on Starbucks stock with a price target of $100. The analyst expects the company’s strategic efforts to drive accelerating sales trends, with potential upside to margins and earnings. Key investor expectations for Q2 FY26 include U.S. same-store sales growth between 5%-6% and 6%-7% (compared to the consensus of 3.9%). Also, FY26 guidance is expected to be raised, though the China joint venture could have an unfavorable impact.
Geiger expects Starbucks’ turnaround efforts and new sales initiatives to continue supporting a rebound in its sales. That said, the analyst prefers to be on the sidelines, as he believes shares already reflect a solid multiyear recovery in sales and earnings. Moreover, Geiger doesn’t view the return on SBUX stock as compelling from current levels, given its “reasonable” valuation.
Meanwhile, Stifel analyst Chris O’Cull increased the price target for Starbucks stock to $115 from $105 and reiterated a Buy rating. The 5-star analyst expects SBUX to report Q2 earnings that are at least in line with the Street’s mean EPS estimate of $0.42. Based on Stifel’s review of mobile location data, O’Cull believes that domestic top-line trends have been strong, driving expectations for comparable sales to at least match his updated 4% projection (previous estimate of 3.5%).
The analyst believes that the continued momentum, building on solid U.S. sales in Q1, is driven by Starbucks’ marketing and menu innovation efforts, which have been bringing back occasional and lapsed customers. O’Cull added that the February limited-time offer—which featured two new Matcha drinks, Valentine’s Day-themed drinks, and attractive bakery items—performed strongly. Also, the analyst noted that the early April launch of Energy Refreshers and a mango-inspired lineup drove a clear uptick in the first week.
AI Analyst Is Cautious on SBUX Stock
Interestingly, TipRanks’ AI Analyst has a Neutral rating on Starbucks stock with a price target of $100, indicating 2.16% upside potential. The AI Analyst’s cautious stance is mainly based on weakening profitability and a high-risk balance sheet (high debt and negative equity), despite continued positive cash generation. Also, technical signals are weak, and valuation seems stretched.
Is Starbucks Stock a Buy, Sell, or Hold?
Currently, Wall Street has a Moderate Buy consensus rating on Starbucks stock based on 14 Buys, 12 Holds, and two Sells. The average SBUX stock price target of $103.58 indicates 6% upside potential.
