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Monster Beverage Corporation (MNST - Free Report) reported solid third-quarter 2026 results, with adjusted earnings of 30 cents per share, in line with the Zacks Consensus Estimate. Earnings increased 8.5% year over year from 28 cents per share.
Net sales increased 16.7% year over year to $2.56 billion, surpassing the consensus mark of $2.48 billion by 3.2%. Results benefited from strength in the core energy-drink business, product innovation and robust international demand. Sales outside the United States jumped 28.1%, highlighting the company's expanding global footprint.
This Zacks Rank #3 (Hold) company’s shares have gained 26% in the past six months compared with the industry’s 12.3% growth.
Image Source: Zacks Investment Research
MNST's Energy Drink Business Fuels Sales Growth
Net sales in the Monster Energy Drinks segment increased 17.1% year over year to $2.37 billion. On a foreign currency-adjusted basis, segment sales advanced 16.7%. The segment includes Monster Energy, Reign, Bang, Storm and FLRT products.
The Strategic Brands segment generated net sales of $156.4 million, up 19.8% from the prior-year quarter. Currency-adjusted sales increased 19.3%. Meanwhile, Alcohol Brands sales declined 13.6% to $28.5 million, while Other segment sales fell 29.5% to $4.8 million.
Monster Beverage Corporation Price, Consensus and EPS Surprise
Monster Beverage's International Growth Accelerates
International sales accounted for approximately 47% of total revenues compared with 43% a year earlier. On a currency-adjusted basis, overseas sales climbed 27.2%, reflecting broad-based demand and market-share gains across several regions.
Regional momentum remained strong. EMEA sales rose 24.9%, while the Asia-Pacific’s sales increased 12.3%. Latin America, including Mexico and the Caribbean, advanced 48.8%. Brazil stood out with 70% sales growth in dollars, while China and India posted increases of 43.8% and 67.2%, respectively. U.S. and Canadian sales increased 9.5%, supported by core brands, zero-sugar offerings and innovation.
MNST's Margins Face Cost & Geographic Mix Pressures
Adjusted gross profit, as a percentage of net sales, excluding Alcohol Brands, was 54.9% in the third quarter of 2026, down 130 basis points (bps) from a year ago. Higher aluminum can costs, unfavorable geographic sales mix and increased freight-in expenses weighed on profitability, partly offset by pricing actions.
Adjusted operating expenses were $644.4 million, or 25.4% of adjusted net sales excluding Alcohol Brands, compared with $517.8 million, or 23.9%, in the year-ago quarter. Distribution expenses rose 40.8% to $116.3 million, while selling expenses increased 21.2% to $260.1 million. Adjusted general and administrative expenses advanced 18.8% to $274.4 million.
Monster Beverage's Profitability & Liquidity
Operating income increased 6.4% year over year to $718.7 million. Adjusted operating income advanced 7.1% to $748.1 million. Adjusted net income rose 9% to $591.1 million, reflecting higher sales despite increased operating costs. The effective tax rate increased to 24.6% from 23.9%.
Monster Beverage exited the third quarter of 2026 with cash and cash equivalents of $2.15 billion, and total stockholders' equity of $9.84 billion. Accounts receivable stood at $1.96 billion, while inventories totaled $920.1 million. The company repurchased 2.3 million shares for $100 million during the quarter. As of Nov. 4, roughly $800 million remained under existing repurchase authorizations.
MNST's Pricing & Innovation Shape Outlook
Management implemented selective U.S. pricing adjustments effective Nov. 1, 2026, through price increases and reduced promotional allowances across certain packages and channels. The company expects minimal volume impact. In EMEA, pricing increases were implemented in certain markets during the third quarter, with additional actions proposed for the fourth quarter.
Innovation remains central to growth. Monster Beverage plans staggered 2027 launches, including Monster Ultra Aloha POG, REIGN Dirty Soda and new FLRT offerings. The company also plans to introduce Monster Protein in March 2027, expanding into ready-to-drink protein beverages.
Monster Beverage's Distribution Expansion Supports Growth
Management continues to expand food-service and on-premise distribution through partnerships with Carl's Jr., Tim Hortons and Marriott. Zero-sugar products remain an important growth contributor, supported by increasing household penetration and broader consumption occasions.
October sales, excluding Alcohol Brands, were estimated to be 11.6% above the prior-year period, providing an early indication of continued demand. However, management cautioned against extrapolating monthly trends. Higher aluminum costs are expected to persist through at least the first quarter of 2027, while continued international expansion could pressure consolidated gross margin percentages.
The consensus estimate for Diageo’s current fiscal-year sales implies a decline of 3.4%, while earnings suggest growth of 2.7% from the year-ago reported figures.
The Boston Beer Company Inc. (SAM - Free Report) 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. SAM currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Boston Beer’s current fiscal-year sales and earnings implies declines of 3.8% and 3.9%, respectively, from the year-ago reported figures. Boston Beer delivered a trailing four-quarter negative earnings surprise of 6.1%, on average.
The J. M. Smucker Co. (SJM - Free Report) is a leading manufacturer and marketer of branded food, beverage, pet food and pet snack products in North America. It currently has a Zacks Rank #2.
The Zacks Consensus Estimate for J. M. Smucker’s current fiscal-year earnings indicates growth of 17.1% from the prior year’s reported levels. SJM delivered a trailing four-quarter earnings surprise of 13.8%, on average.
View the Zacks #1 Rank List
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MNST Q3 Earnings Meet Estimates, Sales Beat on Global Growth
Key Takeaways
Monster Beverage Corporation (MNST - Free Report) reported solid third-quarter 2026 results, with adjusted earnings of 30 cents per share, in line with the Zacks Consensus Estimate. Earnings increased 8.5% year over year from 28 cents per share.
Net sales increased 16.7% year over year to $2.56 billion, surpassing the consensus mark of $2.48 billion by 3.2%. Results benefited from strength in the core energy-drink business, product innovation and robust international demand. Sales outside the United States jumped 28.1%, highlighting the company's expanding global footprint.
This Zacks Rank #3 (Hold) company’s shares have gained 26% in the past six months compared with the industry’s 12.3% growth.
Image Source: Zacks Investment Research
MNST's Energy Drink Business Fuels Sales Growth
Net sales in the Monster Energy Drinks segment increased 17.1% year over year to $2.37 billion. On a foreign currency-adjusted basis, segment sales advanced 16.7%. The segment includes Monster Energy, Reign, Bang, Storm and FLRT products.
The Strategic Brands segment generated net sales of $156.4 million, up 19.8% from the prior-year quarter. Currency-adjusted sales increased 19.3%. Meanwhile, Alcohol Brands sales declined 13.6% to $28.5 million, while Other segment sales fell 29.5% to $4.8 million.
Monster Beverage Corporation Price, Consensus and EPS Surprise
Monster Beverage Corporation price-consensus-eps-surprise-chart | Monster Beverage Corporation Quote
Monster Beverage's International Growth Accelerates
International sales accounted for approximately 47% of total revenues compared with 43% a year earlier. On a currency-adjusted basis, overseas sales climbed 27.2%, reflecting broad-based demand and market-share gains across several regions.
Regional momentum remained strong. EMEA sales rose 24.9%, while the Asia-Pacific’s sales increased 12.3%. Latin America, including Mexico and the Caribbean, advanced 48.8%. Brazil stood out with 70% sales growth in dollars, while China and India posted increases of 43.8% and 67.2%, respectively. U.S. and Canadian sales increased 9.5%, supported by core brands, zero-sugar offerings and innovation.
MNST's Margins Face Cost & Geographic Mix Pressures
Adjusted gross profit, as a percentage of net sales, excluding Alcohol Brands, was 54.9% in the third quarter of 2026, down 130 basis points (bps) from a year ago. Higher aluminum can costs, unfavorable geographic sales mix and increased freight-in expenses weighed on profitability, partly offset by pricing actions.
Adjusted operating expenses were $644.4 million, or 25.4% of adjusted net sales excluding Alcohol Brands, compared with $517.8 million, or 23.9%, in the year-ago quarter. Distribution expenses rose 40.8% to $116.3 million, while selling expenses increased 21.2% to $260.1 million. Adjusted general and administrative expenses advanced 18.8% to $274.4 million.
Monster Beverage's Profitability & Liquidity
Operating income increased 6.4% year over year to $718.7 million. Adjusted operating income advanced 7.1% to $748.1 million. Adjusted net income rose 9% to $591.1 million, reflecting higher sales despite increased operating costs. The effective tax rate increased to 24.6% from 23.9%.
Monster Beverage exited the third quarter of 2026 with cash and cash equivalents of $2.15 billion, and total stockholders' equity of $9.84 billion. Accounts receivable stood at $1.96 billion, while inventories totaled $920.1 million. The company repurchased 2.3 million shares for $100 million during the quarter. As of Nov. 4, roughly $800 million remained under existing repurchase authorizations.
MNST's Pricing & Innovation Shape Outlook
Management implemented selective U.S. pricing adjustments effective Nov. 1, 2026, through price increases and reduced promotional allowances across certain packages and channels. The company expects minimal volume impact. In EMEA, pricing increases were implemented in certain markets during the third quarter, with additional actions proposed for the fourth quarter.
Innovation remains central to growth. Monster Beverage plans staggered 2027 launches, including Monster Ultra Aloha POG, REIGN Dirty Soda and new FLRT offerings. The company also plans to introduce Monster Protein in March 2027, expanding into ready-to-drink protein beverages.
Monster Beverage's Distribution Expansion Supports Growth
Management continues to expand food-service and on-premise distribution through partnerships with Carl's Jr., Tim Hortons and Marriott. Zero-sugar products remain an important growth contributor, supported by increasing household penetration and broader consumption occasions.
October sales, excluding Alcohol Brands, were estimated to be 11.6% above the prior-year period, providing an early indication of continued demand. However, management cautioned against extrapolating monthly trends. Higher aluminum costs are expected to persist through at least the first quarter of 2027, while continued international expansion could pressure consolidated gross margin percentages.
Stocks to Consider
Diageo plc (DEO - Free Report) is a global beverage alcohol company operating in approximately 180 countries. DEO currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Diageo’s current fiscal-year sales implies a decline of 3.4%, while earnings suggest growth of 2.7% from the year-ago reported figures.
The Boston Beer Company Inc. (SAM - Free Report) 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. SAM currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Boston Beer’s current fiscal-year sales and earnings implies declines of 3.8% and 3.9%, respectively, from the year-ago reported figures. Boston Beer delivered a trailing four-quarter negative earnings surprise of 6.1%, on average.
The J. M. Smucker Co. (SJM - Free Report) is a leading manufacturer and marketer of branded food, beverage, pet food and pet snack products in North America. It currently has a Zacks Rank #2.
The Zacks Consensus Estimate for J. M. Smucker’s current fiscal-year earnings indicates growth of 17.1% from the prior year’s reported levels. SJM delivered a trailing four-quarter earnings surprise of 13.8%, on average.