Monster Beverage (MNST) Q1 2026 earnings summary

Executive summary

• Q1 net sales rose 26.9% YoY to $2.353B, the first fiscal first quarter above $2B; FX-adjusted sales increased 22.1%.

• Net income increased 28.6% to $569.5M and diluted EPS rose 27.6% to $0.58.

• International sales grew 44.9% to $1.06B, reaching 45% of total sales versus 40% a year earlier.

• Global market share gains were supported by core offerings, innovation and strong energy drink demand.

Financial highlights

• Gross profit increased 23.4% to $1.293B; gross margin declined to 55.0% from 56.5% due to mix and higher aluminum and freight costs, partly offset by pricing.

• Operating income rose 28.1% to $730.0M; adjusted operating income increased 24.1% to $733.5M.

• Adjusted net income increased 24.6% to $572.4M; operating expenses rose 17.8% to $563.4M, but fell to 23.9% of sales from 25.8%.

• Operating cash flow was $605.0M versus $507.6M; investing cash use was $520.7M, primarily for available-for-sale investment purchases.

Outlook and guidance

• Modest sequential increases in aluminum costs are expected through year-end 2026; April sales were estimated 24.4% higher YoY, with monthly results not necessarily indicating full-quarter trends.

• Capital expenditures, excluding share repurchases, are estimated below $250M through March 31, 2027; business opportunities could change the estimate.

• Cash from operations, cash resources and available credit are expected to cover working capital and other needs for at least the next 12 months.

• Continued focus on core product growth, innovation, pricing and revenue growth management.