What is driving the sustainably stronger international results (29% FX-adjusted growth) and what is the runway for this growth?

Guy Carling attributed strong international growth to robust category growth, Monster's portfolio over-indexing category drivers, strong partnership with Coca-Cola bottlers, and the accelerating Zero Sugar segment. Hilton Schlosberg highlighted strong growth in Brazil and opportunities in APAC emerging markets. “Structurally, we're outperforming the category with growth delivered both by existing SKUs and products, which are 42% of our growth as well as innovation, which is 58% of our growth versus the category, which is reliant predominantly on innovation.”

How does this year's innovation compare to prior years, what were the learnings from America's 250th LTOs, and an update on the FLRT brand.

Hilton Schlosberg stated staggered launches this year led to better execution. America's 250th LTOs were very successful, with Ultra Red, White and Blue accounting for 5% of sales in Circana since May. FLRT is still early, with marketing starting in June, but the company remains committed with future LTO and NPD plans. “For 2026, we have some innovation coming in the fall. And then in '27, we have a full innovation calendar that we will be presenting and looking forward to sharing with you at NACS in October.”

What are the incremental areas for penetration given the expanded consumer base, such as FSOP, vending, smaller can sizes, or female/health-oriented consumers?

Hilton Schlosberg identified FSOP (e.g., Marriott partnership), 12-ounce cans for broader appeal, and continued growth in zero-sugar products. He noted Gen Z and women are driving incremental growth. Rob Gehring added that innovation is a key recruiting tool, bringing in new consumers at twice the category rate. “We constantly try to use innovation as a recruiting tool. And based on our last cut of household panel, we're bringing in consumers at twice the rate of the category.”

MNST

Monster Beverage (MNST) Q2 FY26 earnings call: the analyst Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Staples· Aug 6, 2026

Source: earnings call transcript

Executive summary

Monster Beverage Q2 FY26 — Record Net Sales and Strong International Growth

Monster Beverage delivered record net sales in Q2 FY26, driven by robust double-digit growth across all geographic regions and strong performance in its core and innovation portfolios. The company continues to expand household penetration and market share, particularly in the zero-sugar segment, supported by strategic marketing and partnerships. Management is implementing selective pricing actions to offset ongoing inflationary pressures, while maintaining a focus on long-term growth and digital transformation initiatives.

Highlights

Net sales crossed $2.5 billion for the first time, increasing 20.2% YoY to $2.54 billion.
International net sales grew 34.6% to $1.16 billion, representing 46% of total net sales.
Monster brand family gained 70 basis points of value market share in the US and MEC portfolio gained 220 basis points in EMEA.
Adjusted diluted EPS increased 15.2% to $0.60.
Zero Sugar products continue to drive significant growth, with the Ultra brand family growing 19% in the US.

Concerns

Alcohol Brands segment net sales decreased 15.2% to $32.2 million.
Distribution expenses increased to 4.7% of net sales from 3.9% due to higher freight and fuel costs.
Selling expenses increased to 10.6% of net sales from 9.3% due to increased marketing investments.
Aluminum costs are expected to see a modest sequential increase through at least the end of 2026 due to the Midwest premium.

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Monster Energy Drinks segment FX adjusted growth: 19.3%	$2.36B	21.6%	—	—
Strategic Brand segment FX adjusted growth: 8.1%	$143.7M	10.6%	—	—
Alcohol Brands segment	$32.2M	-15.2%	—	—
US & Canada Sales performance reflected healthy category growth with solid contribution from core brand families and innovation. Zero sugar portfolio was a significant contributor to growth. Monster brand family value market share gain: 70 bpsUltra brand family growth: 19%Juice Monster family growth: 26%	—	11.5%	—	—
International Strong growth across all regions, contributing a larger portion of total net sales. FX adjusted growth: 29%46% of total net sales (vs 41% in Q2 FY25)	$1.16B	34.6%	—	—
EMEA Strong execution, accelerated cooler placements, and space gains driven by partnership with Coca-Cola bottling partners. Zero Sugar segment is accelerating and Monster is the market leader. Currency-neutral growth: 22.2%MEC portfolio value market share gain: 220 bpsMonster brands grew ~2x categoryZero Sugar segment growth: 23%Full sugar range growth: 10%	—	27.2%	—	38.8%
APAC Optimistic about long-term prospects and expansion of affordable brands in China and India. Currency-neutral growth: 36.7%	—	35.7%	—	41.4%
Japan Benefited from agreement to sell Monster Energy Green in Coca-Cola vending machines, with sales commencing in June. Local currency growth: 24.5%	—	14.5%	—	—
South Korea Results impacted by bottler inventory fluctuations where depletions far exceeded shipments. Local currency growth: 0.6%Market leader	—	-3.6%	—	—
China Local currency growth: 54%	—	62.5%	—	—
India Local currency growth: 100.3%	—	84%	—	—
Oceania Currency-neutral growth: 44.9%	—	57.8%	—	—
LATAM Very strong growth in a number of countries, with major investments going forward with coolers and innovation playing a big role. Currency-neutral growth: 40.4%	—	56.1%	—	46.2%
Brazil Soon to become one of the top countries in terms of sales. Local currency growth: 61.6%	—	82%	—	—
Mexico Local currency growth: 20.5%	—	29.5%	—	—
Chile Local currency growth: 21%	—	26.3%	—	—
Argentina Operating model changed to better manage foreign exchange exposure. Shipment volume increased in the quarter. Local currency growth: -5.7%Market share leader	—	-25.6%	—	—

Product announcements

Product	Type	Timeline
Juice Monster Viking Berry	expansion	Q2 FY26
Oscar Piastri limited edition	launch	Q2 FY26
Monster Energy Lando Norris Zero Sugar Gold limited edition	launch	July 2026
Predator	launch	Q2 FY26
Storm and FLRT	update	Q2 FY26
New Monster Ultra SKUs	expansion	Q2 FY26

Deals & partnerships

Marriott partnership with the Coca-Cola Company to open significant distribution opportunities for Monster in the Food Service On-Premise (FSOP) channel

This partnership is expected to open significant distribution opportunities for Monster, leveraging the Coca-Cola Company's relationship with Marriott.

Big 12 Conference naming rights for Monster Energy for the conferences football and basketball regular seasons, including co-branded logo integration

The partnership includes naming rights for Monster Energy for the conference's football and basketball regular seasons and a co-branded logo appearing on jerseys, courts, fields, and across digital/social media channels.

Capital programs

Digital Transformation Initiatives (SAP S/4HANA upgrade) underway

Period spend: $6.5M

Benefit:modernize enterprise platforms and strengthen end-to-end business capabilities across commercial, operations and supply chain

Expenses related to digital transformation initiatives were included in G&A expenses for Q2 FY26. The upgrade to SAP S/4HANA has a planned go-live date of January 1, 2028.

Risks & headwinds

Increased aluminum can costs due to Midwest premium through at least the end of 2026

modest sequential increase expected through at least the end of 2026

Mitigation:implementing hedging strategies across the business where possible

Higher freight and fuel costs impacting distribution expenses Q2 FY26 and ongoing

distribution expenses increased to 4.7% of net sales in Q2 FY26 from 3.9% in Q2 FY25

Mitigation:hope will come down in terms of political settlements

Complicated and dynamic tariff landscape Q2 FY26 and ongoing

modest impact on business in Q2 FY26

Mitigation:do not believe current tariffs will have a material impact on the company's operating results; continue to recognize tariffs on aluminum through higher Midwest premium; implement hedging strategies

Bottler inventory fluctuations impacting net sales in South Korea Q2 FY26

net sales decreased 3.6% in dollars and increased 0.6% on a local currency basis in Q2 FY26; depletions far exceeded shipments

Foreign exchange exposure in Argentina Q2 FY26

net sales decreased 25.6% in dollars and decreased 5.7% on a local currency basis in Q2 FY26

Mitigation:changed operating model to better manage foreign exchange exposure

What to watch in Q3 FY26

US pricing actions implementation

Q4 2026

Current Discussions initiated with partners and customers

Target Selective pricing actions effective

Why it matters

Indicates ability to offset inflationary pressures and maintain gross margins in the largest market.

Lastly, in the United States, we have initiated discussions with our partners and customers to implement selective pricing actions effective during the 2026 fourth quarter.

Find out whether MNST delivers this. Inve re-checks your case every morning.

Q&A highlights

Details on global pricing actions, including where, how much, and the approach.

Management confirmed consistent pricing strategy to drive revenue ahead of volume and profit ahead of revenue. Low single-digit pricing was implemented in certain EMEA markets in Q2, with further proposals later in the year. US discussions for selective pricing actions effective Q4 2026 have begun.

“We're fortunate we have Rob Gehring with us, and we have Guy Carling with us here today. So Rob, I'm going to ask Rob to talk about the U.S. piece, and then Guy will talk about the EMEA piece.”

asked by Kaumil Gajrawala · answered by Hilton Schlosberg

2 min read 6 chapters

Detailed narrative

Global Energy Drink Category Health

The global energy drink category remains healthy with robust double-digit growth across all regions, driven by functionality, lifestyle positioning, diverse offerings, and affordable value propositions. Household penetration continues to increase, with new consumers being recruited at twice the rate of the overall category, particularly Gen Z and women, indicating further growth potential.

Strategic Marketing and Innovation

Monster maintained strong marketing momentum in Q2, focusing on core business growth, new consumer acquisition, and household penetration expansion. This included sponsorships with UFC and the Big 12 conference, music programs, and successful limited-time product offerings (LTOs) like the America 250th anniversary variants. The company also accelerated marketing for new brands such as Storm and FLRT, with a full innovation calendar planned for 2027.

Partnerships and Channel Expansion

The partnership with The Coca-Cola Company and its global bottling partners continues to drive growth, increasing availability and SKU assortment. A significant new partnership with Marriott, facilitated by Coca-Cola, is expected to open substantial distribution opportunities in the Food Service On-Premise (FSOP) channel, which is a key strategic focus area for Monster's expansion.

Pricing Strategy and Inflation Management

Monster is implementing selective pricing actions globally to manage inflationary pressures. Low single-digit price increases were implemented in certain EMEA markets in Q2, with further proposals for later in the year. Discussions for US pricing actions, effective Q4 2026, have also begun. The company acknowledges ongoing increases in aluminum, freight, and fuel costs, but believes the impact of tariffs will remain modest.

Digital Transformation and Investor Engagement

The company is undergoing a digital transformation, including an upgrade to SAP S/4HANA with a planned go-live date of January 1, 2028, to modernize enterprise platforms and strengthen business capabilities. Monster plans to host an investor meeting in New York City on December 1, 2026, where it intends to share its robust innovation pipeline for 2027.

Stock Split

The company's Board of Directors approved and declared a 2-for-1 stock split of its common stock. Shares are anticipated to begin trading at the split-adjusted price on August 11, 2026, reflecting a corporate action to enhance shareholder value.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.