11:34 AM EST, 01/29/2026 (MT Newswires) -- Starbucks' ( SBUX ) fiscal Q1 topline beat was driven by growing same-store-sales momentum across all regions, RBC Capital Markets said in a research note Wednesday.

In the US, the company's growth strategy seems to be succeeding, with transactions turning positive for the first time since Q1 2024 and same store sales for the North America segment exceeding estimates by 186 bps, the brokerage said.

Despite the revenue beat, earnings came in below expectations due to labor investments and tariff headwinds, analysts wrote.

The company's 128 new stores worldwide in fiscal Q1 missed consensus mainly due to no additions in China, the brokerage said.

The company addressed the $2 billion cost savings and expects to realize those efficiencies over the next two to three years, according to the note.

RBC maintained its fiscal Q2 EPS guidance of $0.43 but lowered its revenue guidance to $9.01 billion from $9.06 billion earlier. For fiscal 2026, the brokerage cut its EPS outlook to $2.33 from $2.43 and its revenue forecast to $38.69 billion from $38.84 billion previously.

RBC has an outperform rating on the stock and price target of $105 per share.

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