01—Abstract
Summary
Summary of the 10-Q filed November 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Monster Beverage Corporation reported strong financial performance for the nine months ended September 30, 2026, with net sales reaching $7.45 billiona, an increase of 20.9% compared to the same period in the prior year.
This growth was primarily driven by robust sales of its core Monster Energy® brand, particularly in international markets, which saw a 28.1% increase in net sales for the third quarter. The company's 'Monster Energy® Drinks' segment continues to be the main revenue driver, accounting for over 92% of net sales. Profitability also saw a significant improvement, with net income growing by 18.3% year-over-year to $1.72 billionb for the nine-month period.
The company's gross profit margin remained strong at 55.2%, despite some headwinds from increased aluminum can and freight-in costs, which were partially offset by strategic pricing actions. Operating expenses increased, partly due to investments in marketing and digital transformation, but operating income still grew by 16.6% to $2.19 billionc for the nine months. The company also maintained a healthy cash position, with over $2.14 billion in cash and cash equivalents, demonstrating sound liquidity.
02—Key points
Key Highlights
- Net sales grew by 20.9% to $7.45 billion for the nine months ended September 30, 2026, driven by strong global demand for Monster Energy® drinks.
- International net sales increased significantly, up 28.1% in the third quarter, indicating successful global expansion.
- Net income rose by 18.3% to $1.72 billion for the nine-month period, showcasing improved profitability.
- Gross profit margin remained robust at 55.2% for the nine months, despite increased raw material and freight costs, aided by strategic pricing.
- Operating income increased by 16.6% to $2.19 billion for the nine-month period, reflecting efficient operations and sales growth.
- The company maintained a strong liquidity position with $2.15 billion in cash and cash equivalents as of September 30, 2026.
- Energy drink case sales increased by 22.7% year-over-year for the nine-month period, demonstrating strong volume growth.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Monster Beverage kept $0.22.
- Revenue$2.56B100.0%
- Cost of revenue−$1.16B45.3%
- Gross profit$1.40B54.7%
- Operating costs−$682.0M26.6%
- Operating income$718.7M28.0%
- Interest, other & tax−$150.3M5.9%
- Net income$568.4M22.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed November 6, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $2.56B$2.20B | +16.7% |
| Cost of Revenue | $1.16B$972.65M | +19.5% |
| Gross Profit | $1.40B$1.22B | +14.4% |
| Operating Expenses | $682.02M$549.13M | +24.2% |
| Operating Income | $718.72M$675.35M | +6.4% |
| Net Income | $568.43M$524.46M | +8.4% |
| EPS (Basic) | $0.29$0.27 | +7.4% |
| EPS (Diluted) | $0.29$0.27 | +7.4% |
| Shares Outstanding (Basic) | 1.96B1.95B | +0.3% |
| Shares Outstanding (Diluted) | 1.98B1.97B | +0.5% |
05—Questions
Frequently Asked Questions
What was the primary driver of Monster Beverage's sales growth in the reported period?
The primary driver of Monster Beverage's sales growth was the increased worldwide sales of its core Monster Energy® brand energy drinks, fueled by rising consumer demand. International markets showed particularly strong performance, with a notable increase in net sales.
How did the company manage its gross profit margins despite rising costs?
Monster Beverage managed its gross profit margins through a combination of strategic pricing actions implemented in late 2025 and 2026, alongside favorable product and geographical sales mix. These factors helped to offset the impact of increased aluminum can and freight-in costs.
What is the company's current financial health and liquidity situation?
The company's financial health and liquidity remain strong. As of September 30, 2026, Monster Beverage reported $2.15 billion in cash and cash equivalents and $1.56 billion in short-term investments. The company also has an undrawn revolving credit facility of $500 million, indicating ample resources to meet its financial obligations and pursue growth opportunities.
How is the company investing in future growth?
The company is investing in future growth through increased selling and marketing expenses, which include spending on social media, digital advertising, media, sponsorships, and endorsements. Additionally, investments are being made in digital transformation initiatives and the development of new products and market expansion.
06—Continue