SBUX · 8-K · 20261029PR000154

Operating Margin Drivers

STARBUCKS CORP · 2026-10-29 · Importance 43 · Surprise 48 · No source text

Fiscal 2026 GAAP operating margin expanded 180 basis points to 9.7%, with operating income up 25.7% to $3.69 billion; sales leverage was partly offset by labor investments largely supporting “Back to Starbucks.” Q4 GAAP operating margin increased 790 basis points to 10.8%, primarily because of lower restructuring costs and sales leverage, while non-GAAP margin rose 460 basis points to 14.0%. North America Q4 margin increased to 12.3% from 4.5%, and International margin increased to 19.7% from 10.8%, with lower restructuring costs contributing to both improvements. Channel Development Q4 operating margin expanded 460 basis points to 53.5%, primarily due to mix shifts and higher income from the North American Coffee Partnership joint venture relative to segment revenue.

Key facts

• Q4 FY2026 GAAP operating margin expanded 790 basis points year over year to 10.8%, primarily driven by lower restructuring costs and sales leverage. source
• Q4 FY2026 non-GAAP operating margin expanded 460 basis points year over year to 14.0%, or 450 basis points on a constant currency basis. source
• FY2026 GAAP operating margin expanded 180 basis points year over year to 9.7%, primarily driven by sales leverage, partly offset by labor investments largely supporting Back to Starbucks. source
• FY2026 non-GAAP operating margin expanded 200 basis points year over year to 11.9%. source

Impact estimates