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    MNST
    Earnings call· Jun 2026(Q2 FY26)

    Monster Beverage Q2 FY26 earnings call MNST

    Aug 6, 2026 Source

    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

    5

    • 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

    4

    • 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

    17
    SegmentRevenueYoYQoQMargin
    Monster Energy Drinks segment
    FX adjusted growth: 19.3%
    		$2.36B21.6%——
    Strategic Brand segment
    FX adjusted growth: 8.1%
    		$143.7M10.6%——
    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)
    		$1.16B34.6%——
    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%——

    Operational metrics

    25
    Adjusted operating expenses
    $662.7Mvs $505.6M in Q2 FY25
    Q2 FY26
    Adjusted operating income
    $748.1Mincreased 13.3% from $660.1M in Q2 FY25
    Q2 FY26
    Adjusted net income per diluted share
    $0.60increased 15.2% from $0.52 in Q2 FY25
    Q2 FY26
    Distribution expenses
    $118.8Mvs $82M in Q2 FY25
    Q2 FY26
    Selling expenses
    $269.2Mvs $196.9M in Q2 FY25
    Q2 FY26
    General and administrative expenses
    $291.2Mvs $265.9M in Q2 FY25
    Q2 FY26
    Stock-based compensation
    $35.7Mvs $33.2M in Q2 FY25
    Q2 FY26
    Foreign currency exchange rates impact on net sales
    $48.5Mfavorable impact
    Q2 FY26
    July 2026 sales growth (ex-Alcohol Brands)
    approximately 14.3% highervs July 2025
    July 2026

    Management cautioned that sales over a short period should not necessarily be imputed to or regarded as indicative results for the full quarter or any future period.

    July 2026 sales growth (incl-Alcohol Brands)
    approximately 13.9% highervs July 2025
    July 2026

    Management cautioned that sales over a short period should not necessarily be imputed to or regarded as indicative results for the full quarter or any future period.

    July 2026 sales growth (FX adjusted, ex-Alcohol Brands)
    approximately 13.9% highervs July 2025
    July 2026

    Management cautioned that sales over a short period should not necessarily be imputed to or regarded as indicative results for the full quarter or any future period.

    July 2026 sales growth (FX adjusted, incl-Alcohol Brands)
    approximately 13.5% highervs July 2025
    July 2026

    Management cautioned that sales over a short period should not necessarily be imputed to or regarded as indicative results for the full quarter or any future period.

    Share repurchase authorization remaining
    $900M
    as of August 5, 2026

    No shares were repurchased during Q2 FY26.

    Energy drink category growth (US)
    7.1%vs same period a year ago
    13-week period through July 25, 2026
    Energy drink category growth (EMEA)
    10.4%vs same period last year
    13-week period
    Energy drink category growth (APAC)
    11.7%vs same period last year
    13-week period
    Energy drink category growth (LATAM)
    23.8%vs same period last year
    3 months ended June 30, 2026
    Zero Sugar segment growth
    23%vs 5% for full sugar
    Q2 FY26
    Monster portfolio contribution to Zero Sugar growth
    61%
    Q2 FY26
    Monster Zero Sugar products contribution to value sales growth
    38%
    last 13-week period
    Full sugar range growth
    10%
    Q2 FY26
    Innovation contribution to EMEA growth
    58%
    Q2 FY26

    Versus 42% from existing SKUs and products.

    Ultra Red, White and Blue LTO sales contribution
    5%
    since May launch
    Household panel new consumer recruitment rate
    2xvs the category rate
    Q2 FY26

    Innovation is used as a recruiting tool.

    New entrants category (household panel)
    19%
    Q2 FY26

    Industry KPIs

    12
    MetricValueDetails
    Category brand share70 bpsbps
    EPS organic EPS growth$0.59USD
    Gross operating margin55.9%%
    Organic revenue growth17.9%%
    Geographic regional mix46%%
    Unit case volume growth19%%
    Aluminum packaging cost impactmodest
    Freight logistics cost pressure$118.8MUSD
    Energy functional category healthcontinues to increase
    Pack architecture pricing actionslow single-digits%
    Bottler franchise system economics—
    Cold drink equipment distribution reach—

    Product announcements

    6
    ProductTypeDetails
    Juice Monster Viking Berryexpansion
    Oscar Piastri limited editionlaunch
    Monster Energy Lando Norris Zero Sugar Gold limited editionlaunch
    Predatorlaunch
    Storm and FLRTupdate
    New Monster Ultra SKUsexpansion

    Deals & partnerships

    2
    Marriottpartnership 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 Conferencenaming 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

    1
    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

    5
    Increased aluminum can costs due to Midwest premiumthrough 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 expensesQ2 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 landscapeQ2 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 KoreaQ2 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 ArgentinaQ2 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

    5

    US pricing actions implementation

    Q4 2026
    CurrentDiscussions initiated with partners and customers
    TargetSelective 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.

    Q&A highlights

    6

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.