{"id":542447,"date":"2026-07-10T08:54:11","date_gmt":"2026-07-10T08:54:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/542447\/"},"modified":"2026-07-10T08:54:11","modified_gmt":"2026-07-10T08:54:11","slug":"starbucks-sbux-is-replacing-microsoft-and-ibm-software-to-cut-400-million-spend","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/542447\/","title":{"rendered":"Starbucks (SBUX) Is Replacing Microsoft And IBM Software To Cut $400 Million Spend"},"content":{"rendered":"\n

Find your next quality investment<\/a> with Simply Wall St’s easy and powerful screener, trusted by over 7 million individual investors worldwide. <\/p>\n

Starbucks is rolling out new proprietary artificial intelligence platforms to replace key Microsoft and IBM inventory and maintenance systems. <\/p>\n

The company is tying this technology shift to a wider $2b cost reduction plan, including a targeted cut to its $400m annual software budget. <\/p>\n

The overhaul is aimed at gaining more control over operations and could influence how other global consumer brands approach enterprise technology. <\/p>\n

Starbucks, traded as NasdaqGS:SBUX, is layering this AI push on top of a stock that has seen mixed multi year returns, including 26.7% year to date and 14.8% over the past year. The current share price of $106.41 and a 9.2% return over the past 30 days indicate that the market has recently been more constructive on the company. However, the 0.5% return over five years highlights a much flatter longer term profile. <\/p>\n

For you as an investor, this AI driven rebuild is less about headline technology and more about what it could mean for Starbucks’ recurring cost base and operating flexibility over time. The company’s push toward digital independence may also affect how it negotiates with large vendors and how quickly it can adjust store operations as conditions change. <\/p>\n

Stay updated on the most important news stories for Starbucks<\/a> by adding it to your watchlist<\/a> or portfolio<\/a>. Alternatively, explore our Community<\/a> to discover new perspectives on Starbucks. <\/p>\n

\"NasdaqGS:SBUX<\/a> NasdaqGS:SBUX Earnings & Revenue Growth as at Jul 2026 <\/p>\n

1 thing going right for Starbucks that this headline doesn’t cover.<\/a> <\/p>\n

Quick Assessment <\/p>\n

\u2696\ufe0f Price vs Analyst Target: Starbucks trades at US$106.41, which is within 1% of the US$105.94 analyst price target. <\/p>\n

\u274c Simply Wall St Valuation: Shares are trading at about 36.1% above the internal fair value estimate. <\/p>\n

\u2705 Recent Momentum: The stock is up 9.2% over the last 30 days, suggesting investors are receptive to recent updates. <\/p>\n

There’s only one way to know the right time to buy, sell or hold Starbucks. Head to Simply Wall St’s company report for the latest analysis of Starbucks’s Fair Value<\/a>. <\/p>\n

Key Considerations <\/p>\n

\ud83d\udcca The AI shift away from Microsoft and IBM could reshape Starbucks’ cost structure and operational control if the systems perform as intended. <\/p>\n

\ud83d\udcca Watch how the US$2b cost reduction plan, including the US$400m software budget, flows through margins and cash flows over the next few reporting periods. <\/p>\n

\u26a0\ufe0f With negative shareholder equity, a 3.9% net margin and a dividend that is not fully covered, execution missteps on this overhaul could strain the balance sheet further. <\/p>\n

Dig Deeper <\/p>\n

For the full picture including more risks and rewards, check out the complete Starbucks analysis<\/a>. Alternatively, you can check out the community page for Starbucks<\/a> to see how other investors believe this latest news will impact the company’s narrative. <\/p>\n

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. <\/p>\n

Companies discussed in this article include SBUX<\/a>. <\/p>\n

Have feedback on this article? Concerned about the content? Get in touch<\/a> with us directly. Alternatively, email editorial-team@simplywallst.com<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"Find your next quality investment with Simply Wall St’s easy and powerful screener, trusted by over 7 million…\n","protected":false},"author":2,"featured_media":542448,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,52443,61,60,230338,1071,135518,230340,19566,230339,80],"class_list":["post-542447","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-cost-reduction","tag-ie","tag-ireland","tag-maintenance-systems","tag-microsoft","tag-simply-wall-st","tag-software-budget","tag-starbucks","tag-store-operations","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/542447","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=542447"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/542447\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/542448"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=542447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=542447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=542447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}