SBUX · 8-K · 20261029PR000154

Income Tax Rate Changes

STARBUCKS CORP · 2026-10-29 · Importance 57 · Surprise 64 · In source text

The fiscal 2026 effective tax rate increased to 34.2% from 25.9%, and income tax expense rose 102.1% to $1.315 billion. Starbucks attributed the increase primarily to changes in indefinite reinvestment assertions after China operations were classified as held for sale, tax impacts of the China divestiture, and the prior-year comparison with a foreign-entity tax-status change. The company reported a fiscal 2026 non-GAAP effective tax rate of 24.8%, down 90 basis points from 25.7%. In Q4, the GAAP effective tax rate was 27.1%, up from 18.8%, while the non-GAAP rate increased 100 basis points to 24.7%.

Key facts

• Q4 FY2026 effective tax rate was 27.1%, compared with 18.8% in the prior year; the increase primarily reflected permanent differences and discrete items relative to higher pre-tax earnings and the China retail operations divestiture. source
• FY2026 effective tax rate was 34.2%, compared with 25.9% in the prior year. source
• Q4 FY2026 non-GAAP effective tax rate increased 100 basis points to 24.7%. source
• FY2026 non-GAAP effective tax rate decreased 90 basis points to 24.8%. source

Impact estimates