MNST · Monster Beverage Corporation

Monster Beverage Corporation delivered a strong first quarter in 2026, with net sales surging 26.9% to $2.35 billion, marking the first time the company has exceeded $2 billion in a fiscal first quarter. The growth was broad-based, led by the Monster Energy Drinks segment, which saw a 27.6% increase to $2.19 billion, and the Strategic Brands segment, up 28.9% to $126.7 million. International sales were a standout, rising 44.9% to $1.06 billion and representing 45% of total net sales, the highest proportion ever for a single quarter. On a foreign currency adjusted basis, total net sales grew 22.1%. Operating income increased 28.1% to $730.0 million, while adjusted operating income rose 24.1% to $733.5 million. Net income grew 28.6% to $569.5 million, and diluted EPS increased 27.6% to $0.58. Gross margin contracted to 55.0% from 56.5% in the prior year, driven by unfavorable geographic sales mix, higher aluminum can costs, and increased freight-in costs due to out-of-orbit production to meet demand. Management highlighted the strong start to the year and the continued momentum in the global energy drink category. The company also repurchased 1.4 million shares for $100 million during the quarter, with $400 million remaining under its buyback authorization. The investor presentation (Exhibit 99.2) provided scanner data showing market share gains in key regions, reinforcing the company's competitive position.