10-QPeriod: Q1 FY2026

Monster Beverage Corp Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 8, 2026For Securities:MNST

Summary

Monster Beverage Corporation (MNST) reported a strong first quarter for 2026, demonstrating robust top-line growth and improved profitability. Net sales surged by 26.9% year-over-year to $2.35 billion, driven by broad-based strength in its core Monster Energy® Drinks segment and continued international expansion. Diluted Earnings Per Share (EPS) increased to $0.58, up from $0.45 in the prior year's comparable period, reflecting the significant sales growth and effective cost management. The company's gross profit margin saw a slight decrease to 55.0% from 56.5%, attributed to higher aluminum can and freight-in costs, partially offset by strategic pricing actions implemented in late 2025. Despite these cost pressures, operating expenses as a percentage of net sales decreased, leading to an expansion in operating income margin to 31.0% from 30.7% year-over-year. The balance sheet remains strong, with substantial cash and cash equivalents, underscoring the company's financial flexibility.

Financial Highlights

47 data points
Beta

Revenue

$2.35B

55.0% Gross Margin

Net Income

$569.49M

24.2% Net Margin

Total Assets

$10.84B

Cash & Equivalents

$2.04B

Free Cash Flow

$584.38M

Financial Statements
Beta
Revenue$2.35B
Cost of Revenue$1.06B
Gross Profit$1.29B
Operating Expenses$563.39M
Operating Income$729.96M
Net Income$569.49M
Shares Outstanding (Basic)978.31M
Shares Outstanding (Diluted)988.26M

Key Highlights

  • 1Net sales increased by 26.9% to $2.35 billion in Q1 2026 compared to Q1 2025, driven by strong demand for Monster Energy® drinks.
  • 2Diluted EPS grew to $0.58 from $0.45 year-over-year, reflecting improved profitability.
  • 3International sales showed significant growth, contributing 45% of total net sales in Q1 2026.
  • 4Gross profit margin slightly decreased to 55.0% from 56.5% due to increased costs for aluminum cans and freight-in, partially mitigated by pricing actions.
  • 5Operating income increased by 28.1% to $730.0 million, with operating margin expanding to 31.0%.
  • 6The company repurchased approximately $100.0 million of its common stock under its share repurchase program during the quarter.
  • 7Cash and cash equivalents stood at $2.04 billion at the end of the quarter, providing ample liquidity.

Frequently Asked Questions

The primary driver of Monster Beverage's revenue growth in the first quarter of 2026 was the increased worldwide sales of its Monster Energy® brand energy drinks, fueled by strong consumer demand and continued international expansion. Net sales increased by 26.9% to $2.35 billion compared to the same period in the previous year.

Monster Beverage experienced increased costs for aluminum cans and freight-in, which led to a slight decrease in gross profit margin to 55.0% from 56.5%. However, the company implemented strategic pricing actions in late 2025 and managed operating expenses effectively, resulting in an expansion of operating income margin to 31.0%. Management's strategy appears to focus on balancing cost management with pricing strategies to maintain profitability.

Monster Beverage maintains a strong financial position with $2.04 billion in cash and cash equivalents and $945.3 million in short-term investments as of March 31, 2026. The company also has an undrawn $500 million revolving credit facility. During the quarter, it continued its share repurchase program, buying back $100 million of its common stock, demonstrating a commitment to returning capital to shareholders while retaining significant financial flexibility for future growth initiatives.

The Monster Energy® Drinks segment remains the dominant contributor, accounting for 93.0% of net sales and showing a 27.6% year-over-year increase. The Strategic Brands segment also performed well, with a 28.9% increase in net sales. However, the Alcohol Brands segment experienced a slight decline of 5.9% in net sales, primarily due to decreased craft beer sales. The Other segment also saw a decrease in net sales.