01—Abstract
Summary
Summary of the 10-Q filed May 8, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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%b from 30.7% year-over-year. The balance sheet remains strong, with substantial cash and cash equivalents, underscoring the company's financial flexibility.
02—Key points
Key Highlights
- Net sales increased by 26.9% to $2.35 billion in Q1 2026 compared to Q1 2025, driven by strong demand for Monster Energy® drinks.
- Diluted EPS grew to $0.58 from $0.45 year-over-year, reflecting improved profitability.
- International sales showed significant growth, contributing 45% of total net sales in Q1 2026.
- Gross 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.
- Operating income increased by 28.1% to $730.0 million, with operating margin expanding to 31.0%.
- The company repurchased approximately $100.0 million of its common stock under its share repurchase program during the quarter.
- Cash and cash equivalents stood at $2.04 billion at the end of the quarter, providing ample liquidity.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Monster Beverage kept $0.24.
- Revenue$2.35B100.0%
- Cost of revenue−$1.06B45.0%
- Gross profit$1.29B55.0%
- Operating costs−$563.4M23.9%
- Operating income$730.0M31.0%
- Interest, other & tax−$160.5M6.8%
- Net income$569.5M24.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 8, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.35B$1.85B | +26.9% |
| Cost of Revenue | $1.06B$806.60M | +31.4% |
| Gross Profit | $1.29B$1.05B | +23.4% |
| Operating Expenses | $563.39M$478.22M | +17.8% |
| Operating Income | $729.96M$569.75M | +28.1% |
| Net Income | $569.49M$442.99M | +28.6% |
| EPS (Basic) | $0.29$0.23 | +28.9% |
| EPS (Diluted) | $0.29$0.23 | +28.9% |
| Shares Outstanding (Basic) | 1.96B1.95B | +0.5% |
| Shares Outstanding (Diluted) | 1.98B1.96B | +0.7% |
05—Questions
Frequently Asked Questions
What was the primary driver of Monster Beverage's revenue growth in the first quarter of 2026?
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.
What is the company's outlook on cost pressures and their impact on margins?
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.
How is the company managing its capital and liquidity?
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.
What is the performance of the company's different business segments?
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.
06—Continue