The Boston Beer Company (SAM) Q3 2026 earnings summary

Executive summary

• Q3 net revenue fell 3.2% to $520.1M; depletions declined 5% and shipments fell 4.9%.

• Gross margin rose 90 bps to 51.7%, its highest quarterly rate since 2017, as productivity and savings offset lower volume and cost pressure.

• 9M net revenue declined 3.6% to $1.522B; a $194.5M supplier-litigation expense contributed to a $50.5M net loss.

Financial highlights

• Q3 net income was $43.2M versus $46.2M; operating income was $56.3M versus $62.0M.

• Q3 non-GAAP EPS was $4.37 excluding supplier-litigation costs; GAAP diluted EPS was $4.21, including a $0.16 litigation impact.

• 9M gross profit was $769.4M, down 2.0%; operating loss was $63.4M versus operating income of $177.9M.

• 9M GAAP diluted loss per share was $4.87 versus non-GAAP EPS of $9.64.

• 9M operating cash flow was $194.2M versus $230.2M.

Outlook and guidance

• FY26 depletions and shipments are expected to decline mid-single digits; shipments are expected slightly ahead of depletions for the year, with modest Q4 shipment growth.

• FY26 gross margin guidance is 49%-50%, representing 50-150 bps of YoY expansion; non-GAAP EPS guidance is $9.00-$10.50, raised from a prior $8.50-$10.50 range.

• FY26 pricing is expected to contribute 1%-2%, with additional mix benefit; AP&S expense is projected approximately flat and the non-GAAP effective tax rate at 29%-30%.

• FY26 tariff costs are estimated at $18M-$22M; $14.2M had been incurred through September 26, with guidance net of a $3M Q3 refund.

• FY26 capital spending is projected at $55M-$70M; full-year shortfall fees and non-cash production prepayment expense are expected to reduce gross margin by 40-60 bps.