Key Takeaways
- **Starbucks (SBUX) reported mixed first-quarter fiscal 2026 results, with adjusted EPS of 56 cents missing estimates of 59 cents, but net revenue of $9.9 billion exceeded expectations of $9.65 billion.
- **Otis Worldwide (OTIS) posted fourth-quarter adjusted EPS of $1.03, slightly below the $1.04 estimate, with sales reaching $3.8 billion against an estimated $3.88 billion.
- Germany's Economy Ministry projects that fiscal stimulus will account for two-thirds of the country's expected growth this year, though net trade is anticipated to provide a negative contribution again in 2026.
- US Treasury Secretary Bessent announced upcoming disclosures regarding philanthropists and Trump accounts.
- Freeport LNG is considering rescheduling cargoes as heating demand surges.
Starbucks (SBUX) delivered a mixed bag for its first fiscal quarter of 2026, with adjusted earnings per share (EPS) of 56 cents falling short of the 59-cent estimate. However, the coffee giant surpassed revenue expectations, reporting $9.9 billion in net revenue against an estimated $9.65 billion.
Comparable store sales showed strength, with a 4% increase in the U.S., outperforming the 1.88% estimate. International comparable sales rose 5%, exceeding the 2.53% estimate, driven by a 7% surge in China, well above the 2.45% projection. The company's adjusted operating margin for the quarter stood at 10.1%, slightly below the 10.3% estimate. Starbucks' board declared a cash dividend of $0.62 per share.
Looking ahead, Starbucks (SBUX) projects full-year adjusted EPS between $2.15 and $2.40, aligning with the $2.35 estimate, and expects full-year comparable sales to increase by at least 3%. The company anticipates coffee prices easing in the back half of the fiscal year and plans to renovate 1,000 cafes by year-end, having already completed 200. During the first quarter, Starbucks (SBUX) closed 165 stores.
Otis Worldwide (OTIS) also released its fourth-quarter results, reporting adjusted EPS of $1.03 against an estimate of $1.04, and sales of $3.8 billion, slightly missing the $3.88 billion estimate. The company's reported EPS for the quarter was $0.95. For the full year 2026, Otis (OTIS) expects organic sales to grow in the low to mid-single digits and adjusted earnings per share to increase in the mid to high single digits.
Economically, Germany's Economy Ministry forecasts that fiscal stimulus will be a significant driver, contributing two-thirds of the country's expected growth this year. However, the report also indicates that net trade is anticipated to have a negative contribution to the German economy again in 2026.
In the United States, Treasury Secretary Bessent announced that disclosures regarding philanthropists and Trump accounts are forthcoming. Meanwhile, Freeport LNG is reportedly considering rescheduling cargoes due to a surge in heating demand.
Other notable developments include Telecom Italia (TIT) shareholders approving the conversion of savings shares, and a raid on Deutsche Bank (DBK) related to suspected money laundering by staff. Charging companies are also betting on continued American demand for electric vehicles despite the end of subsidies, focusing on fast-charging solutions. In international relations, European Union foreign ministers are reportedly unlikely to designate Iran’s Islamic Revolutionary Guard Corps (IRGC) as a terrorist organization during their upcoming meeting.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.