Operating margins have faced significant pressure, declining from 16.7% in 2024Q3 to 8.2% in 2026Q2 as the company struggles to offset rising labor and supply chain costs.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Sales/Revenue | 38.46B | 37.18B | 36.18B | 35.98B | 32.25B | 29.06B | 23.52B | 26.51B | 24.72B | 22.39B | 21.32B | 19.16B | 16.45B | 14.87B | 13.28B | 11.7B | 10.71B | 9.77B | 10.38B | 9.41B | 7.79B | 6.37B | 5.29B | 4.08B | 3.29B | 2.65B | 2.17B | 1.68B | 1.31B | 975.4M | 697.9M |
| Revenue Growth % | 5.83% | 2.79% | 0.56% | 11.55% | 10.98% | 23.57% | -11.28% | 7.24% | 10.42% | 5.02% | 11.24% | 16.51% | 10.63% | 11.98% | 13.47% | 9.27% | 9.54% | -5.86% | 10.32% | 20.86% | 22.26% | 20.31% | 29.9% | 23.92% | 24.16% | 22.12% | 29.11% | 28.38% | 34.17% | 39.76% | 50.02% |
| Cost of Goods Sold | 30.63B | 28.2B | 26.47B | 26.13B | 23.88B | 20.67B | 18.46B | 19.02B | 17.4B | 15.55B | 14.57B | 13.2B | 11.5B | 10.67B | 9.73B | 8.51B | 4.42B | 4.32B | 4.65B | 7.22B | 6.13B | 4.97B | 4.15B | 1.69B | 2.6B | 2.08B | 1.68B | 1.32B | 1.03B | 773.1M | 564.7M |
| COGS % of Revenue | - | 75.85% | 73.16% | 72.63% | 74.04% | 71.13% | 78.49% | 71.75% | 70.4% | 69.47% | 68.37% | 68.88% | 69.9% | 71.76% | 73.3% | 72.74% | 41.25% | 44.25% | 44.74% | 76.66% | 78.68% | 78% | 78.45% | 41.37% | 79% | 78.58% | 77.65% | 78.75% | 78.78% | 79.26% | 80.91% |
| Gross Profit | 7.83B | 8.98B | 9.71B | 9.85B | 8.37B | 8.39B | 5.06B | 7.49B | 7.32B | 6.83B | 6.74B | 5.96B | 4.95B | 4.2B | 3.55B | 3.19B | 6.29B | 5.45B | 5.74B | 2.2B | 1.66B | 1.4B | 1.14B | 2.39B | 690.61M | 567.4M | 484.93M | 357.1M | 277.7M | 202.3M | 133.2M |
| Gross Margin % | 20.36% | 24.15% | 26.84% | 27.37% | 25.96% | 28.87% | 21.51% | 28.25% | 29.6% | 30.53% | 31.63% | 31.12% | 30.1% | 28.24% | 26.7% | 27.26% | 58.75% | 55.75% | 55.26% | 23.34% | 21.32% | 22% | 21.55% | 58.63% | 21% | 21.42% | 22.35% | 21.25% | 21.22% | 20.74% | 19.09% |
| Gross Profit Growth % | - | -7.49% | -1.39% | 17.62% | -0.24% | 65.86% | -32.44% | 2.34% | 7.05% | 1.36% | 13.05% | 20.47% | 17.92% | 18.42% | 11.14% | -49.29% | 15.44% | -5.02% | 161.22% | 32.3% | 18.49% | 22.8% | -52.25% | 246.01% | 21.72% | 17.01% | 35.8% | 28.59% | 37.27% | 51.88% | 42.46% |
| Operating Expenses | 4.26B | 5.4B | 4.3B | 3.98B | 3.75B | 3.52B | 3.5B | 3.41B | 3.43B | 2.7B | 2.57B | 2.36B | 1.87B | 4.52B | 1.55B | 1.46B | 4.87B | 4.89B | 5.23B | 1.14B | 766.3M | 620.54M | 534.4M | 1.96B | 371.89M | 286.3M | 252.37M | 197.2M | 158.5M | 116M | 76.7M |
| OpEx % of Revenue | - | 14.52% | 11.89% | 11.05% | 11.64% | 12.11% | 14.87% | 12.86% | 13.89% | 12.06% | 12.06% | 12.33% | 11.37% | 30.43% | 11.66% | 12.49% | 45.5% | 50% | 50.41% | 12.14% | 9.84% | 9.74% | 10.09% | 48.21% | 11.31% | 10.81% | 11.63% | 11.74% | 12.11% | 11.89% | 10.99% |
| Selling, General & Admin | 2.58B | 2.62B | 2.52B | 2.44B | 2.03B | 1.93B | 1.68B | 1.82B | 1.71B | 1.41B | 1.41B | 1.2B | 991.3M | 937.9M | 801.2M | 749.3M | 4.18B | 3.88B | 4.2B | 783.38M | 473.02M | 357.11M | 304.29M | 1.77B | 202.16M | 151.42M | 110.2M | 89.7M | 77.6M | 57.1M | 37.3M |
| SG&A % of Revenue | - | 7.04% | 6.98% | 6.79% | 6.3% | 6.65% | 7.14% | 6.88% | 6.91% | 6.29% | 6.61% | 6.24% | 6.03% | 6.31% | 6.03% | 6.4% | 39.01% | 39.68% | 40.46% | 8.32% | 6.07% | 5.61% | 5.75% | 43.32% | 6.15% | 5.72% | 5.08% | 5.34% | 5.93% | 5.85% | 5.34% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 2.78B | 1.78B | 1.53B | 1.72B | 1.59B | 1.82B | 1.59B | 1.73B | 1.29B | 1.16B | 1.17B | 878.4M | 3.59B | 746.8M | 712.2M | 695M | 1.01B | 1.03B | 359.15M | 293.27M | 263.42M | 230.11M | 199.41M | 169.72M | 134.89M | 142.17M | 107.5M | 80.9M | 58.9M | 39.4M |
| Operating Income | 3.57B | 3.58B | 5.41B | 5.87B | 4.62B | 4.87B | 1.56B | 4.08B | 3.88B | 4.13B | 4.17B | 3.6B | 3.08B | -325.4M | 2B | 1.73B | 1.42B | 562M | 503.9M | 1.05B | 893.95M | 780.62M | 606.59M | 424.71M | 318.73M | 281.09M | 232.55M | 159.9M | 119.2M | 86.3M | 56.5M |
| Operating Margin % | 9.28% | 9.63% | 14.95% | 16.32% | 14.32% | 16.77% | 6.64% | 15.38% | 15.71% | 18.47% | 19.57% | 18.79% | 18.73% | -2.19% | 15.04% | 14.77% | 13.26% | 5.75% | 4.85% | 11.2% | 11.48% | 12.26% | 11.46% | 10.42% | 9.69% | 10.61% | 10.72% | 9.52% | 9.11% | 8.85% | 8.1% |
| Operating Income Growth % | - | -33.8% | -7.87% | 27.13% | -5.22% | 211.97% | -61.7% | 5.01% | -6.08% | -0.89% | 15.85% | 16.87% | 1046.87% | -116.29% | 15.56% | 21.78% | 152.56% | 11.53% | -52.19% | 17.9% | 14.52% | 28.69% | 42.82% | 33.25% | 13.39% | 20.87% | 45.44% | 34.14% | 38.12% | 52.74% | 40.9% |
| EBITDA | 5.24B | 5.27B | 7B | 7.32B | 6.15B | 6.4B | 3.06B | 5.53B | 5.19B | 5.2B | 5.2B | 4.53B | 3.83B | 330.2M | 2.58B | 2.28B | 1.96B | 1.13B | 1.11B | 1.55B | 1.31B | 1.16B | 932.24M | 683.98M | 539.87M | 458.18M | 374.72M | 267.4M | 200.1M | 145.2M | 95.9M |
| EBITDA Margin % | 13.64% | 14.16% | 19.35% | 20.35% | 19.06% | 22.01% | 13.03% | 20.85% | 20.99% | 23.24% | 24.4% | 23.66% | 23.28% | 2.22% | 19.42% | 19.47% | 18.31% | 11.51% | 10.68% | 16.43% | 16.8% | 18.18% | 17.61% | 16.78% | 16.41% | 17.3% | 17.27% | 15.92% | 15.29% | 14.89% | 13.74% |
| EBITDA Growth % | -15.72% | -24.79% | -4.37% | 19.1% | -3.89% | 108.69% | -44.55% | 6.51% | -0.24% | -0% | 14.71% | 18.42% | 1059.75% | -87.19% | 13.14% | 16.24% | 74.19% | 1.52% | -28.3% | 18.13% | 13.01% | 24.21% | 36.3% | 26.7% | 17.83% | 22.27% | 40.14% | 33.63% | 37.81% | 51.41% | 47.77% |
| D&A (Non-Cash Add-back) | 1.67B | 1.68B | 1.59B | 1.45B | 1.53B | 1.52B | 1.5B | 1.45B | 1.31B | 1.07B | 1.03B | 933.8M | 748.4M | 655.6M | 580.6M | 550M | 540.8M | 563.3M | 604.5M | 491.89M | 414.64M | 377.3M | 325.65M | 259.27M | 221.14M | 177.09M | 142.17M | 107.5M | 80.9M | 58.9M | 39.4M |
| EBIT | 3.69B | 3.69B | 5.53B | 5.95B | 4.71B | 5.83B | 1.6B | 4.8B | 5.95B | 4.41B | 4.28B | 3.97B | 3.22B | -201.8M | 2.09B | 1.84B | 1.47B | 599M | 512.9M | 1.05B | 893.95M | 780.62M | 606.59M | 424.71M | 318.73M | 281.09M | 232.55M | 159.9M | 119.2M | 86.3M | 56.5M |
| Net Interest Income | -483M | -429.3M | -439.2M | -468.9M | -385.9M | -379.7M | -397.3M | -234.5M | 21.1M | 89.3M | 21.3M | -27.5M | 78.6M | 95.5M | 61.7M | 82.6M | -32.7M | -2.1M | -44.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 107.1M | 113.3M | 122.8M | 81.2M | 97M | 90.1M | 39.7M | 96.5M | 191.4M | 181.8M | 102.6M | 43M | 142.7M | 123.6M | 94.4M | 115.9M | 0 | 37M | 9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 590.1M | 542.6M | 562M | 550.1M | 482.9M | 469.8M | 437M | 331M | 170.3M | 92.5M | 81.3M | 70.5M | 64.1M | 28.1M | 32.7M | 33.3M | 32.7M | 39.1M | 53.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -425.2M | -429.3M | -439.2M | -468.9M | -385.9M | 484.8M | -397.3M | 388.3M | 1.9B | 182.8M | 26.7M | 302M | 78.6M | 95.5M | 61.7M | 82.6M | 17.6M | -2.1M | -44.4M | 2.42M | 12.29M | 15.73M | 14.05M | 11.62M | 22.66M | 7.83M | -71.98M | 4.1M | -2.8M | 5M | 11.6M |
| Pretax Income | 3.15B | 3.15B | 4.97B | 5.4B | 4.23B | 5.36B | 1.16B | 4.47B | 5.78B | 4.32B | 4.2B | 3.9B | 3.16B | -229.9M | 2.06B | 1.81B | 1.44B | 559.9M | 459.5M | 1.06B | 906.24M | 796.35M | 620.63M | 436.33M | 341.39M | 288.92M | 160.57M | 164M | 116.4M | 91.3M | 68.1M |
| Pretax Margin % | 8.18% | 8.48% | 13.74% | 15.02% | 13.12% | 18.43% | 4.95% | 16.85% | 23.38% | 19.29% | 19.7% | 20.37% | 19.21% | -1.55% | 15.51% | 15.48% | 13.42% | 5.73% | 4.43% | 11.22% | 11.64% | 12.5% | 11.72% | 10.71% | 10.38% | 10.91% | 7.4% | 9.76% | 8.89% | 9.36% | 9.76% |
| Income Tax | 1.65B | 1.29B | 1.21B | 1.28B | 948.5M | 1.16B | 239.7M | 871.6M | 1.26B | 1.43B | 1.38B | 1.14B | 1.09B | -238.7M | 674.4M | 563.1M | 488.7M | 168.4M | 144M | 383.73M | 324.77M | 301.98M | 231.75M | 167.99M | 126.31M | 107.71M | 66.01M | 62.3M | 48M | 36.1M | 26.4M |
| Effective Tax Rate % | 52.45% | 41.09% | 24.29% | 23.64% | 22.41% | 21.59% | 20.59% | 19.52% | 21.83% | 33.18% | 32.86% | 29.3% | 34.56% | 103.83% | 32.75% | 31.09% | 34.01% | 30.08% | 31.34% | 36.33% | 35.84% | 37.92% | 37.34% | 38.5% | 37% | 37.28% | 41.11% | 37.99% | 41.24% | 39.54% | 38.77% |
| Net Income | 1.5B | 1.86B | 3.76B | 4.12B | 3.28B | 4.2B | 928.3M | 3.6B | 4.52B | 2.88B | 2.82B | 2.76B | 2.07B | 8.3M | 1.38B | 1.25B | 945.6M | 390.8M | 315.5M | 672.64M | 564.26M | 494.37M | 388.88M | 268.35M | 215.07M | 181.21M | 94.56M | 101.7M | 68.4M | 55.2M | 41.7M |
| Net Margin % | 3.89% | 4.99% | 10.4% | 11.46% | 10.18% | 14.45% | 3.95% | 13.58% | 18.28% | 12.89% | 13.22% | 14.39% | 12.57% | 0.06% | 10.42% | 10.65% | 8.83% | 4% | 3.04% | 7.15% | 7.25% | 7.76% | 7.35% | 6.58% | 6.54% | 6.84% | 4.36% | 6.05% | 5.23% | 5.66% | 5.98% |
| Net Income Growth % | -52.2% | -50.64% | -8.82% | 25.69% | -21.85% | 352.36% | -74.21% | -20.34% | 56.63% | 2.38% | 2.19% | 33.33% | 24816.87% | -99.4% | 11.09% | 31.74% | 141.97% | 23.87% | -53.1% | 19.21% | 14.14% | 27.13% | 44.92% | 24.77% | 18.69% | 91.63% | -7.02% | 48.68% | 23.91% | 32.37% | 59.77% |
| Net Income (Continuing) | 1.5B | 1.86B | 3.76B | 4.12B | 3.28B | 4.2B | 924.7M | 3.59B | 4.52B | 2.88B | 2.82B | 2.76B | 2.07B | 8.8M | 1.38B | 1.25B | 948.3M | 391.5M | 315.5M | 672.64M | 581.47M | 494.37M | 388.88M | 268.35M | 215.07M | 181.21M | 94.56M | 101.7M | 68.4M | 55.2M | 41.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 7.4M | 7.4M | 7.3M | 7M | 7.9M | 6.7M | 5.7M | 1.2M | 6.3M | 6.9M | 6.7M | 1.8M | 1.7M | 2.1M | 5.5M | 2.4M | 7.6M | 0 | 18.3M | 17.25M | 0 | 0 | 0 | 0 | 0 | 4.93M | 3.59M | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.31 | 1.63 | 3.31 | 3.58 | 2.83 | 3.54 | 0.79 | 2.92 | 3.24 | 1.97 | 1.90 | 1.82 | 1.36 | 0.01 | 0.90 | 0.81 | 0.62 | 0.26 | 0.22 | 0.44 | 0.36 | 0.31 | 0.12 | 0.17 | 0.07 | 0.06 | 0.03 | 0.03 | 0.05 | 0.01 | 0.00 |
| EPS Growth % | -52.17% | -50.76% | -7.54% | 26.5% | -20.06% | 348.1% | -72.95% | -9.88% | 64.47% | 3.68% | 4.4% | 33.82% | - | -99.44% | 11.11% | 30.65% | 138.46% | 18.18% | -50% | 22.22% | 16.13% | 158.33% | -29.41% | 161.54% | 13.04% | 91.67% | -11.24% | -27% | - | - | - |
| EPS (Basic) | - | 1.63 | 3.31 | 3.60 | 2.85 | 3.57 | 0.79 | 2.95 | 3.27 | 2.00 | 1.92 | 1.86 | 1.38 | 0.01 | 0.92 | 0.83 | 0.64 | 0.26 | 0.22 | 0.45 | 0.37 | 0.32 | 0.12 | 0.17 | 0.14 | 0.12 | 0.06 | 0.07 | 0.05 | 0.01 | 0.00 |
| Diluted Shares Outstanding | 1.14B | 1.14B | 1.14B | 1.15B | 1.16B | 1.19B | 1.18B | 1.23B | 1.39B | 1.46B | 1.49B | 1.51B | 1.53B | 1.52B | 1.55B | 1.54B | 1.53B | 1.49B | 1.48B | 1.54B | 1.59B | 1.62B | 1.64B | 1.61B | 1.59B | 1.58B | 1.54B | 1.46B | 1.48B | 1.26B | 1.24B |
| Basic Shares Outstanding | 1.14B | 1.14B | 1.14B | 1.15B | 1.15B | 1.18B | 1.17B | 1.22B | 1.38B | 1.43B | 1.46B | 1.49B | 1.5B | 1.51B | 1.5B | 1.48B | 1.49B | 1.49B | 1.46B | 1.5B | 1.53B | 1.56B | 1.59B | 1.56B | 1.54B | 1.52B | 1.48B | 1.46B | 1.48B | 1.26B | 1.24B |
| Dividend Payout Ratio | - | 149.29% | 68.73% | 58.96% | 68.97% | 50.46% | 207.21% | 48.94% | 38.59% | 50.28% | 41.81% | 33.68% | 37.87% | 7577.11% | 37.07% | 31.27% | 18.08% | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Operational complexity and margin compression
According to recent quarterly filings, Starbucks' revenue growth has exhibited significant volatility, fluctuating from a peak of 8.8% in 2026Q2 to a contraction of 3.2% in 2024Q4, suggesting that the company's historical reliance on consistent unit expansion is currently struggling against shifting consumer demand patterns.
The inconsistency in top-line performance indicates that the brand's premium positioning may be losing its elasticity in the face of broader economic pressures. Investors should monitor whether the recent revenue uptick in 2026Q2 represents a sustainable recovery or merely a temporary fluctuation driven by promotional activity.
Based on the provided financial data, gross margins have experienced a notable decline from 27.9% in 2024Q3 to 20.1% in 2026Q2, reflecting mounting pressures from labor costs and the operational complexity inherent in the company's current beverage customization strategy and supply chain management.
This contraction suggests that the company is finding it increasingly difficult to pass rising input costs to the consumer without sacrificing volume. The downward trend in margin profile warrants further investigation into whether the 'Siren Craft' initiatives are effectively mitigating these structural cost burdens.
As reported in financial statements, operating margins have compressed from a high of 16.7% in 2024Q3 to 8.2% in 2026Q2, indicating that the company is failing to achieve the necessary operating leverage to offset rising overhead and store-level expenses during this period of transition.
The inability to scale operating income alongside revenue suggests that the current store-level model is becoming increasingly labor-intensive and costly to maintain. This trend may indicate that the company's historical efficiency gains are being eroded by the operational demands of a more complex menu.
Based on the reported figures, EPS has shown extreme instability, ranging from $0.93 in 2024Q3 to a low of $0.12 in 2025Q4, which appears to be exacerbated by inconsistent net income margins and the ongoing impact of stock-based compensation on shareholder value.
The wide variance in quarterly earnings suggests that net income is highly sensitive to non-operating items and potential impairment charges. Investors should be cautious of the quality of these earnings, as the significant fluctuations may obscure the true underlying profitability of the core retail business.
As indicated by the recent financial data, the company's net margin has fallen to 5.4% in 2026Q2, which may suggest that the 'affordable luxury' thesis is being challenged by competitors who offer more efficient service models and lower price points for the average consumer.
Short-sellers may focus on the potential for permanent margin erosion if the company cannot successfully pivot its operational model to address current throughput bottlenecks. The reliance on high-density urban locations may also present a long-term risk if foot traffic patterns do not return to historical norms.
Quick answers to the most common questions about buying SBUX stock.
For fiscal year 2025, Starbucks Corporation (SBUX) reported total revenue of $37.18B. This represents a 5228.0% increase compared to $697.9M in 1996.
Starbucks Corporation (SBUX) is profitable, generating $1.86B in net income for the fiscal year ending 2025 with a net profit margin of 5.0%.
Starbucks Corporation (SBUX) reported an operating income of $3.58B, resulting in an operating profit margin of 9.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Starbucks Corporation (SBUX) generated $8.98B in gross profit for the year, representing a gross profit margin of 24.2%. This demonstrates the company's core pricing power and production efficiency.