Monster Beverage stock posts record sales as margins narrow

Published on 11/09/2026 at 14:18 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Monster Beverage stock follows a quarter of record sales and faster international growth. Higher aluminum and freight costs narrowed the gross margin.

Monster Beverage expands despite margin pressure

Third-quarter net sales rose 16.7 percent year over year, led by energy drinks and international demand.
Sales outside the United States increased 28.1 percent and reached 47 percent of total sales.
Gross margin narrowed as aluminum, freight and geographic mix weighed on profitability.
Management highlighted pricing actions, product launches and higher marketing investment as key operating priorities.

Monster Beverage, US61174X1090, Illustration mit AI erstellt.

Monster Beverage reported record third-quarter sales on Thursday, November 5, 2026, but stronger growth came with pressure on profitability. In its earnings release, the company said revenue for the three months ended September 30 increased 16.7 percent year over year to 2.56 billion US dollars.

International demand drives quarterly growth

The core Monster Energy Drinks segment generated 2.37 billion US dollars in sales, up 17.1 percent from the year-earlier quarter. Strategic Brands revenue increased 19.8 percent to 156.4 million US dollars, while Alcohol Brands revenue fell 13.6 percent to 28.5 million US dollars.

International demand was a major growth engine. Sales outside the United States rose 28.1 percent to 1.20 billion US dollars and represented 47 percent of total revenue, compared with 43 percent a year earlier. Management said Latin America was particularly strong, with sales in the region increasing 48.8 percent, mainly because of growth in Brazil.

Costs weigh on profitability

Gross margin declined to 54.7 percent from 55.7 percent in the comparable quarter. Monster Beverage attributed the reduction primarily to higher aluminum can costs, geographic sales mix and increased freight-in costs. Pricing actions partly offset those pressures.

Operating income increased 6.4 percent to 718.7 million US dollars, below the pace of sales growth. Net income rose 8.4 percent to 568.4 million US dollars, while diluted earnings per share increased 7.8 percent to 0.29 US dollars. On an adjusted basis, earnings per share rose 8.5 percent to 0.30 US dollars. The quarter also included a 19.9 million US dollar property and equipment impairment charge and 14.7 million US dollars in digital transformation expenses.

Chief Executive Officer Hilton Schlosberg said the company continued to invest in marketing across social, digital and media platforms. New products in the Monster Energy, Java Monster, Mother and FLRT lines are intended to support existing brands and broaden consumer reach.

Pricing and mix remain key watchpoints

Management has not provided quarterly earnings guidance. On the earnings call, Schlosberg said raw aluminum prices had risen 36 percent from a year earlier and described international expansion as a continuing drag on consolidated margin percentages. The company is using price increases, operating efficiencies and product mix to counter those effects, while zero-sugar products offer higher margins than full-sugar products.

Monster Beverage also repurchased approximately 2.3 million shares during the quarter at an average price of 43.87 US dollars per share. As of November 4, approximately 800 million US dollars remained available under existing repurchase authorizations. The company completed a two-for-one stock split in August, and reported per-share figures reflect the split.

Monster Beverage stock traded at 41.11 euros on Lang & Schwarz at 14:10 CET on Monday, November 9, 2026. For a live market view, see the real-time quote of Monster Beverage stock.