Monster Beverage Corporation

Monster reported Q2 2026 net sales of $2.54 billion, up 20.2% from $2.11 billion a year ago. Net sales excluding the alcohol brand segment increased 20.8%, and on a foreign-currency-adjusted basis net sales rose 17.9% (18.5% excluding alcohol). Gross profit as a percentage of net sales was 55.9% versus 55.7% last year; adjusted gross margin excluding alcohol was 56.3% versus 56.2%. Operating income increased 17.2% to $740.4 million, and adjusted operating income rose 13.3% to $748.1 million. Reported net income per diluted share was $0.59, up 19% from $0.50, and adjusted EPS was $0.60, up 15.2% from $0.52. For July 2026, management estimated sales up about 14.3% excluding alcohol, or 13.9% on a foreign-currency-adjusted basis excluding alcohol. No full-year revenue or EPS guidance was provided on the call, but management said it expects continued modest sequential increases in aluminum costs through at least the end of 2026 and said it is reviewing opportunities for price increases domestically and internationally.

Hilton Schlosberg framed the quarter as another strong step for the business, pointing to record quarterly sales, double-digit growth in every geographic region, and share gains in many markets including the Monster brand in the U.S. He emphasized that the energy drink category remains healthy, with household penetration still expanding and demand supported by both premium and value offerings. His tone was confident and constructive, with repeated references to innovation, marketing execution, and the Coca-Cola system as central to the company’s long-term strategy.

Tom Kelly’s prepared remarks were mainly the financial review, with hard numbers showing stronger sales, stable gross margin, and higher operating income despite heavier spending on marketing and logistics. He cited distribution expenses of $118.8 million, or 4.7% of net sales, versus $82.0 million last year, largely due to freight and fuel, and selling expenses of $269.2 million, or 10.6% of sales, versus $196.9 million, driven by social, digital, sponsorship, and endorsement spending. He also noted G&A of $291.2 million, stock-based compensation of $35.7 million, $6.5 million of digital transformation costs, no share repurchases in Q2, and about $900 million remaining under the repurchase authorization as of August 5.

Analysts focused mainly on pricing, international sustainability, innovation, and operating expense inflation. Management said pricing is being handled selectively rather than through one big global action: in the U.S. Rob Gehring said Monster has consistently moved toward year-over-year pricing and wants revenue ahead of volume and profit ahead of revenue, while Guy Carling said EMEA pricing has been in aggregate low single digits and will continue opportunistically. On innovation, Hilton Schlosberg said the company used staggered launches this year and that the LTOs, including Ultra Red, White, and Blue, were successful; he also said FLRT is still early and that the team is building repeat and consumer awareness. Questions on FSOP and Marriott led management to highlight a meaningful channel opportunity and stronger coordination with Coca-Cola bottlers.