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AB InBev's Q2 revenues and earnings were flat y/y and missed consensus estimates.
Organic revenues rose 5.6% as premiumization, Beyond Beer and megabrands fueled growth.
AB InBev reaffirmed 2026 EBITDA growth of 4-8%, as margins, cash flow and leverage improved.
Anheuser-Busch InBev SA/NV (BUD - Free Report) , aka AB InBev, reported second-quarter 2026 results, wherein earnings per share and revenues missed the Zacks Consensus Estimate. Both top and bottom lines were flat year over year.
BUD reported second-quarter 2026 underlying earnings of 98 cents per share, flat year over year. The figure missed the Zacks Consensus Estimate of $1.09 by 10.1%. Revenues of $15 billion were flat year over year and missed the consensus mark of $16.29 billion by 7.9%.
Shares of this Zacks Rank #3 (Hold) company have gained 12.3% in the past three months compared with the industry’s 7.4% growth.
Image Source: Zacks Investment Research
BUD's Organic Growth Offsets Reported Weakness
On an organic basis, revenues increased 5.6% in the quarter. Revenue per hectoliter rose 4.2%, reflecting disciplined revenue management and a favorable mix from premiumization and Beyond Beer products.
Total volumes increased 0.9% organically. Beer volumes rose 1.1%, while non-beer volumes declined 1.1%. The company recorded its highest-ever second-quarter volumes in Mexico, Colombia and Ecuador, while beer volumes in Brazil returned to growth.
Combined revenues from AB InBev’s megabrands increased 6.2%. Corona revenues grew 17% outside its home market, while Stella Artois and Michelob Ultra advanced 19% and 21%, respectively, outside their domestic markets.
The above-core beer portfolio generated 6.9% revenue growth. Corona delivered double-digit volume growth in 37 markets, while Michelob Ultra expanded across Latin America. About 40% of Michelob Ultra’s volume growth came from markets outside the United States.
Anheuser-Busch InBev SA/NV Price, Consensus and EPS Surprise
No-alcohol beer revenues increased 27%, supporting growth in the company’s broader Balanced Choices portfolio. Revenues from low-carb, low-calorie, sugar-free, gluten-free and no-alcohol brands collectively rose 13%.
Beyond Beer revenues jumped 44%, led by Flying Fish and Cutwater. Cutwater posted triple-digit revenue growth and was the second-largest brand contributor to AB InBev’s overall revenue growth in the quarter.
BUD's Digital Ecosystem Gains Scale
Digitization remained a notable growth vector in the quarter. BEES was operating in 30 markets at the end of June, with 72% of revenues captured through B2B digital platforms. The platform processed $15 billion in gross merchandise value during the quarter, up 16% year over year.
BEES Marketplace gross merchandise value climbed 50% to $1.2 billion from third-party products. The company’s direct-to-consumer platforms served 13 million active consumers and generated $165 million in revenues, representing 12% growth.
AB InBev's Margins Show Operating Leverage
Gross profit increased 7.5% organically, while the gross margin expanded 99 basis points (bps) to 57.5%. Normalized EBIT advanced 8% to $4.60 billion, with the normalized EBIT margin improving 58 bps to 27.6%.
Normalized EBITDA rose 5.8% to $5.94 billion. The normalized EBITDA margin expanded 4 bps to 35.6%, as overhead discipline offset foreign-exchange pressures, and supported higher sales and marketing investments.
Our model had anticipated a rise of 9.5% in normalized EBIT and 7.6% in normalized EBITDA for the second quarter.
BUD Strengthens Cash Flow & Leverage
The free cash flow for the first half of 2026 increased by $2.53 billion to $3.88 billion. The cash flow from operating activities rose to $5.24 billion from $2.7 billion a year earlier, reflecting higher profit and improved working-capital movements.
Net debt totaled $64.2 billion at the end of June. The net debt-to-normalized EBITDA ratio improved to 2.86 from 3.27 a year earlier. AB InBev also completed $1.9 billion of its $6-billion share repurchase program as of July 24.
AB InBev Reaffirms Its 2026 Outlook
Management expects EBITDA growth of 4-8% in 2026, in line with its medium-term outlook. The projection reflects its current view of inflation and broader macroeconomic conditions.
The company anticipates a normalized effective tax rate of 26-28% and net capital expenditure of $3.5-$4 billion. Net pension interest and accretion expenses are projected at $190-$220 million per quarter, while the average gross debt coupon is expected to be 4%.
Three Stocks Looking Good
We have highlighted three better-ranked stocks from the Consumer Staples sector, namely The Vita Coco Company Inc. (COCO - Free Report) , Primo Brands Corporation (PRMB - Free Report) and Fomento Economico Mexicano (FMX - Free Report) .
Vita Coco develops, markets and distributes coconut water and other beverage products, led by the Vita Coco brand. The company currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vita Coco’s current financial-year sales and earnings is expected to rise 31.6% and 64.7%, respectively, from the year-ago reported figures. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.
Fomento Economico Mexicano, alias FEMSA, is a leading Latin American beverage and retail company that operates Coca-Cola bottling businesses, OXXO convenience stores, health and beauty outlets, fuel stations, and digital financial services across multiple countries. The company currently has a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for FMX’s current financial-year sales and earnings indicates growth of 17.3% and 131% from the prior-year reported level. FMX delivered a trailing four-quarter negative earnings surprise of 0.2%, on average.
Primo Brands is a leading North American branded beverage company focused on healthy hydration. The company currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Primo Brands’ current financial-year sales indicates growth of 1.6% from the year-ago reported number. PRMB delivered an average earnings surprise of 1.4% in the trailing four quarters.
View the Zacks #1 Rank List
Image: Bigstock
AB InBev Misses Q2 Earnings & Revenues Estimates, Reaffirms 2026 View
Key Takeaways
Anheuser-Busch InBev SA/NV (BUD - Free Report) , aka AB InBev, reported second-quarter 2026 results, wherein earnings per share and revenues missed the Zacks Consensus Estimate. Both top and bottom lines were flat year over year.
BUD reported second-quarter 2026 underlying earnings of 98 cents per share, flat year over year. The figure missed the Zacks Consensus Estimate of $1.09 by 10.1%. Revenues of $15 billion were flat year over year and missed the consensus mark of $16.29 billion by 7.9%.
Shares of this Zacks Rank #3 (Hold) company have gained 12.3% in the past three months compared with the industry’s 7.4% growth.
Image Source: Zacks Investment Research
BUD's Organic Growth Offsets Reported Weakness
On an organic basis, revenues increased 5.6% in the quarter. Revenue per hectoliter rose 4.2%, reflecting disciplined revenue management and a favorable mix from premiumization and Beyond Beer products.
Total volumes increased 0.9% organically. Beer volumes rose 1.1%, while non-beer volumes declined 1.1%. The company recorded its highest-ever second-quarter volumes in Mexico, Colombia and Ecuador, while beer volumes in Brazil returned to growth.
Combined revenues from AB InBev’s megabrands increased 6.2%. Corona revenues grew 17% outside its home market, while Stella Artois and Michelob Ultra advanced 19% and 21%, respectively, outside their domestic markets.
The above-core beer portfolio generated 6.9% revenue growth. Corona delivered double-digit volume growth in 37 markets, while Michelob Ultra expanded across Latin America. About 40% of Michelob Ultra’s volume growth came from markets outside the United States.
Anheuser-Busch InBev SA/NV Price, Consensus and EPS Surprise
Anheuser-Busch InBev SA/NV price-consensus-eps-surprise-chart | Anheuser-Busch InBev SA/NV Quote
AB InBev Expands New Growth Platforms
No-alcohol beer revenues increased 27%, supporting growth in the company’s broader Balanced Choices portfolio. Revenues from low-carb, low-calorie, sugar-free, gluten-free and no-alcohol brands collectively rose 13%.
Beyond Beer revenues jumped 44%, led by Flying Fish and Cutwater. Cutwater posted triple-digit revenue growth and was the second-largest brand contributor to AB InBev’s overall revenue growth in the quarter.
BUD's Digital Ecosystem Gains Scale
Digitization remained a notable growth vector in the quarter. BEES was operating in 30 markets at the end of June, with 72% of revenues captured through B2B digital platforms. The platform processed $15 billion in gross merchandise value during the quarter, up 16% year over year.
BEES Marketplace gross merchandise value climbed 50% to $1.2 billion from third-party products. The company’s direct-to-consumer platforms served 13 million active consumers and generated $165 million in revenues, representing 12% growth.
AB InBev's Margins Show Operating Leverage
Gross profit increased 7.5% organically, while the gross margin expanded 99 basis points (bps) to 57.5%. Normalized EBIT advanced 8% to $4.60 billion, with the normalized EBIT margin improving 58 bps to 27.6%.
Normalized EBITDA rose 5.8% to $5.94 billion. The normalized EBITDA margin expanded 4 bps to 35.6%, as overhead discipline offset foreign-exchange pressures, and supported higher sales and marketing investments.
Our model had anticipated a rise of 9.5% in normalized EBIT and 7.6% in normalized EBITDA for the second quarter.
BUD Strengthens Cash Flow & Leverage
The free cash flow for the first half of 2026 increased by $2.53 billion to $3.88 billion. The cash flow from operating activities rose to $5.24 billion from $2.7 billion a year earlier, reflecting higher profit and improved working-capital movements.
Net debt totaled $64.2 billion at the end of June. The net debt-to-normalized EBITDA ratio improved to 2.86 from 3.27 a year earlier. AB InBev also completed $1.9 billion of its $6-billion share repurchase program as of July 24.
AB InBev Reaffirms Its 2026 Outlook
Management expects EBITDA growth of 4-8% in 2026, in line with its medium-term outlook. The projection reflects its current view of inflation and broader macroeconomic conditions.
The company anticipates a normalized effective tax rate of 26-28% and net capital expenditure of $3.5-$4 billion. Net pension interest and accretion expenses are projected at $190-$220 million per quarter, while the average gross debt coupon is expected to be 4%.
Three Stocks Looking Good
We have highlighted three better-ranked stocks from the Consumer Staples sector, namely The Vita Coco Company Inc. (COCO - Free Report) , Primo Brands Corporation (PRMB - Free Report) and Fomento Economico Mexicano (FMX - Free Report) .
Vita Coco develops, markets and distributes coconut water and other beverage products, led by the Vita Coco brand. The company currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vita Coco’s current financial-year sales and earnings is expected to rise 31.6% and 64.7%, respectively, from the year-ago reported figures. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.
Fomento Economico Mexicano, alias FEMSA, is a leading Latin American beverage and retail company that operates Coca-Cola bottling businesses, OXXO convenience stores, health and beauty outlets, fuel stations, and digital financial services across multiple countries. The company currently has a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for FMX’s current financial-year sales and earnings indicates growth of 17.3% and 131% from the prior-year reported level. FMX delivered a trailing four-quarter negative earnings surprise of 0.2%, on average.
Primo Brands is a leading North American branded beverage company focused on healthy hydration. The company currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Primo Brands’ current financial-year sales indicates growth of 1.6% from the year-ago reported number. PRMB delivered an average earnings surprise of 1.4% in the trailing four quarters.