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Monster Beverage reported Q2 FY2026 revenue of $2.5 billion, compared with the consensus of $2.4 billion; revenue was 4.97% above the consensus. The company reported adjusted EPS of $0.30, compared with consensus adjusted EPS of $0.29; adjusted EPS was 3.45% above the consensus.
Revenue increased 20.2% from $2.1 billion in Q2 FY2025. The filing attributed the increase primarily to higher worldwide sales of Monster Energy brand drinks resulting from increased consumer demand; Monster Energy Drinks segment revenue rose 21.6%. The filing said Alcohol Brands revenue declined 15.2%, primarily because of lower sales of The Beast product line.
Gross margin was 55.9%, up 0.2 percentage points from a year earlier, as pricing actions and product mix were partly offset by higher aluminum-can and freight-in costs and geographical sales mix. Operating margin was 29.2%, down 0.7 percentage points as operating expenses increased. Free cash flow was $459.8 million, compared with $425.7 million a year earlier.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $2.5 billion | $2.1 billion | 20.2% |
| Diluted EPS | $0.30 | $0.25 | 18.0% |
| Gross margin | 55.9% | 55.7% | 0.2 percentage points |
| Operating margin | 29.2% | 29.9% | −0.7 percentage points |
| Free cash flow | $459.8 million | $425.7 million | 8.01% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.30 | $0.29 | Beat by 3.45% |
| Revenue | $2.5 billion | $2.4 billion | Beat by 4.97% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Hilton Schlosberg said sales increased by double digits in every geographic region and that Monster gained share in many global markets, including for the Monster brand in the United States. He said the company sees continued growth in the global energy-drink category and believes household penetration is increasing as offerings address different consumer groups, price points, needs and occasions.
Schlosberg said second-quarter Monster Energy Drinks segment sales rose 21.6%, while Strategic Brands sales rose 10.6% and Alcohol Brands sales declined 15.2%. He said the company’s marketing spending increased as it sought to reach a broader consumer base and increase household penetration. He also said the company is pursuing food-service and on-premise distribution opportunities through work with Coca-Cola and its bottlers.
On pricing, Schlosberg said Monster had initiated discussions with U.S. partners and customers about selective pricing actions effective in the fourth quarter of 2026. Rob Gehring said the company had moved toward consistent year-over-year pricing and that its goal is to drive revenue ahead of volume and profit ahead of revenue. Guy Carling said EMEA had taken aggregate low-single-digit pricing and would continue to take pricing opportunistically by country, considering category and competitive dynamics.
Schlosberg said tariffs and higher aluminum prices had a modest effect on second-quarter operating results, although tariffs had increased the Midwest aluminum premium and aluminum-can costs. He said Monster expects a continued modest sequential increase in aluminum costs through at least the end of 2026 and will use hedging strategies where possible. He said the company does not expect current tariffs to have a material effect on operating results based on its business model.
The CEO estimated July sales including Alcohol Brands were approximately 13.9% above July 2025 sales, while cautioning that a single month should not be treated as indicative of a full quarter or future period.
Guidance
Management guidance is not available in the provided materials. On the earnings call, Monster said it had initiated discussions on selective U.S. pricing actions effective in the fourth quarter of 2026 and expects aluminum costs to increase modestly sequentially through at least the end of 2026.