Monster Beverage reports strong Q3 sales but lower gross margin
Monster Beverage reported third-quarter 2026 net sales of $2.56 billion on November 5, up 16.7 percent year over year. Sales outside the United States climbed 28.1 percent to $1.20 billion, while diluted GAAP earnings per share rose 7.8 percent to $0.29 and adjusted EPS increased 8.5 percent to $0.30. Gross margin fell to 54.7 percent from 55.7 percent, and the company implemented U.S. pricing changes effective November 1 to address cost pressure.
Why it matters
Revenue growth and international expansion were accompanied by lower gross margin, which can limit profit conversion if input costs persist. The U.S. pricing changes alter the company’s pricing and promotion structure from November 1, while the share repurchase reduces its outstanding share count.
Key facts
- 1Net sales increased 16.7 percent to $2.56 billion in the third quarter of 2026. stocktitan.net
- 2Sales to customers outside the United States rose 28.1 percent to $1.20 billion, representing 47 percent of total net sales. stocktitan.net
- 3Diluted GAAP EPS rose 7.8 percent to $0.29, while adjusted EPS increased 8.5 percent to $0.30. stocktitan.net
- 4Gross profit margin was 54.7 percent, compared with 55.7 percent in the year-earlier quarter. stocktitan.net
- 5Monster bought back 2.3 million shares during the quarter at an average cost of $43.87 per share, for approximately $100 million. scanx.trade
- 6The company said U.S. price increases took effect on November 1, 2026. finance.biggo.com
Open questions
- Material 15 reports 18% year-over-year sales growth, versus 16.7 percent reported by material 1 for the same quarterly sales measure.
- Material 4 says adjusted EPS missed estimates by $0.01, while materials 2, 3 and 5 report adjusted EPS as meeting estimates.
- Reports differ on the direction and size of the immediate post-report share-price reaction.
Summary written by AlphAI AI Desk from 15 of 15 sources. Not investment advice. Figures are as stated by the linked sources.