Anheuser-Busch InBev SA/NV (BUD Quick QuoteBUD - Free Report) , aka AB InBev, reported third-quarter 2026 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Both top and bottom lines increased year over year, supported by premiumization, disciplined revenue management and strong performance across key markets.

BUD reported underlying earnings of $1.21 per share, up 22.4% year over year. The figure beat the Zacks Consensus Estimate of $1.14. Underlying earnings per share (EPS) increased 13.9% year over year on a constant-currency basis in the third quarter of 2026.

Revenues increased 9.1% year over year to $16.51 billion, surpassing the consensus mark of $16.24 billion. 

Shares of the Zacks Rank #3 (Hold) company have lost 8.1% in the past three months compared with the industry’s 4.7% decline.

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BUD's Organic Growth Reflects Strong Brand Momentum

On an organic basis, revenues increased 4.9% in the quarter. Revenues per hectoliter rose 4.2%, reflecting disciplined revenue management, and a favorable mix from premiumization and Beyond Beer products.

Total volumes grew 0.4% organically. Beer volumes declined 0.1%, while non-beer volumes increased 4%. The company recorded its highest-ever third-quarter volumes in 15 markets, including Colombia, Peru, Ecuador, South Africa, the Dominican Republic and India.

Combined revenues from AB InBev's megabrands increased 7.7%, led by Corona. Revenues for the Corona brand grew 20% outside its home market, while Stella Artois and Michelob Ultra advanced 19% and 50%, respectively, outside their domestic markets.

The above-core beer portfolio generated 8.6% revenue growth. Corona delivered double-digit volume growth in 37 markets, while Michelob Ultra continued expanding across Latin America. About 60% of Michelob Ultra's volume growth came from markets outside the United States.

AB InBev Sees Mixed Regional Performance

North America revenues declined 0.9% organically, while volumes fell 2.5%. In the United States, revenues decreased 1.2%, with sales-to-retailers declining 3.1%. However, Michelob Ultra and Busch Light remained the industry's leading volume share gainers.

Middle Americas revenues advanced 12.1%, supported by 7.3% volume growth. Mexico recorded high-single-digit revenue growth, while Colombia delivered mid-teens growth. South America revenues increased 9.1%, aided by Brazil's 5.3% revenue growth and 1.4% volume improvement.

EMEA revenues rose 4%, supported by premiumization and growth in key African markets. However, Asia Pacific revenues declined 9.5%, reflecting weakness in China, where volumes and revenues fell 16.8% amid challenging industry conditions and inventory management.

BUD Expands Its Growth Platforms

No-alcohol beer revenues increased 35%, supporting growth in the company's broader Balanced Choices portfolio. Revenues from low-carb, low-calorie, sugar-free, gluten-free and no-alcohol beer brands collectively rose 19%.

Beyond Beer revenues grew 19%, led by Cutwater in the United States and Flying Fish's continued international expansion. Cutwater delivered revenue growth in the high-thirties, while the mainstream beer portfolio recorded 2.1% revenue growth.

AB InBev's Digital Ecosystem Maintains Momentum

Digitization remained a notable growth driver. BEES operated in 30 markets at September-end, with 73% of revenues captured through B2B digital platforms. The platform processed $15.9 billion in gross merchandise value in the quarter, up 12% year over year.

BEES Marketplace gross merchandise value climbed 45% to $1.4 billion from third-party products. The company's direct-to-consumer platforms served 13 million active consumers and generated $158 million in revenues, representing 9% growth.

BUD's Margins Face Cost Pressures

Gross profit increased 5.3% organically to $9.30 billion, while the reported gross margin declined to 56.3% from 56.4% a year earlier. On an organic basis, the gross margin expanded 20 basis points (bps).

Normalized EBIT increased 6% organically to $4.54 billion, with the normalized EBIT margin expanding 27 bps organically to 27.5%.

Normalized EBITDA rose 3.9% organically to $5.96 billion. The normalized EBITDA margin contracted 34 bps organically to 36.1%, reflecting increased sales and marketing investments and commodity cost pressures, partly offset by disciplined overhead management.

Our model had anticipated a rise of 7.5% in normalized EBIT and 4.1% in normalized EBITDA for the third quarter.

AB InBev Boosts Shareholder Returns, Reaffirms Outlook

BUD approved an interim dividend of €0.40 per share for 2026 compared with €0.15 for 2025. The company completed $2.6 billion of its $6-billion share repurchase program as of Oct. 26, 2026.

Management expects organic EBITDA growth of 4-8% in 2026, consistent with its medium-term outlook. The projection reflects its assessment 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 Diageo plc (DEO Quick QuoteDEO - Free Report) , The Boston Beer Company Inc. (SAM Quick QuoteSAM - Free Report) and The J. M. Smucker Co. (SJM Quick QuoteSJM - Free Report) .

Diageo is a global beverage alcohol company operating in approximately 180 countries. 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 Diageo’s current financial-year sales suggests a decline of 3.4%, while the earnings estimate implies a rise of 2.7% from the year-ago reported figures.

Boston Beer is one of the largest craft brewers in the United States. Boston Beer produces beer, malt beverages and cider products at company-owned breweries and under contract. The company currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for Boston Beer’s 2026 sales and EPS indicates declines of 3.8% and 3.9%, respectively, from the year-ago reported numbers. SAM delivered an average negative earnings surprise of 6.1% in the trailing four quarters.

J. M. Smucker is a leading manufacturer and marketer of branded food, beverage, pet food and pet snack products in North America. SJM currently has a Zacks Rank #2.

The Zacks Consensus Estimate for J. M. Smucker’s 2026 EPS implies growth of 17.1% from the previous year’s reported number. SJM delivered a trailing four-quarter average earnings surprise of 13.8%.