What was Starbucks' financial performance in Q3 2025?

Starbucks reported a 4% year-over-year increase in revenue to $9.5 billion in Q3 2025, beating Street expectations, but its earnings of $0.50 per share missed estimates by 23%.

How is Starbucks' new CEO, Brian Niccol, leading the company's turnaround?

Niccol reassured investors that Starbucks' turnaround is advancing ahead of schedule, despite the weak financial results, and the company's initiatives are "showing promise" according to analysts.

What is the outlook for Starbucks stock?

Wells Fargo analysts have maintained an "Overweight" rating on Starbucks shares, expecting the stock to extend gains as the company executes on its plans for a new app, refreshed rewards program, and new drink launches in fiscal 2026.

Home / Business and Economy / Starbucks Shares Dip Despite Revenue Growth, China Rebound

Starbucks Shares Dip Despite Revenue Growth, China Rebound

1 Aug

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Summary

Starbucks Q3 2025 earnings miss Street estimates by 23%
Revenue up 4% YoY to $9.5B, beating expectations
China business sees uptick for first time since early 2024

Starbucks Shares Dip Despite Revenue Growth, China Rebound

On August 1, 2025, Starbucks (SBUX) shares closed slightly down after the coffeehouse company reported weak comparable sales and earnings in its fiscal Q3 2025. Investors were cautious as the company's $0.50 per share earnings missed Street estimates by around 23%.

Despite the earnings miss, Starbucks' turnaround efforts under the leadership of its new CEO, Brian Niccol, have been progressing ahead of schedule. The company's revenue in Q3 2025 increased by 4% year-over-year to $9.5 billion, handily beating analysts' expectations.

Notably, Starbucks saw an uptick in its China business for the first time since early 2024, which is a positive sign for the company's long-term growth prospects. Niccol reassured investors that while the financial results do not yet fully reflect the progress made, the turnaround is advancing ahead of schedule.

Analysts at Wells Fargo have maintained their "Overweight" rating on Starbucks shares, stating that the new management's initiatives are "showing promise." The investment firm expects SBUX stock to extend gains as the coffee giant executes on its plans of launching a new app, refreshing its "Rewards" program, and rolling out new drinks in its fiscal 2026.

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