$MNST · Monster Beverage Corp
Monster Beverage reported Q3 FY2026 (ended September 30, 2026) net sales of $2.563B, up 16.7% YoY, with net income of $568.4M and diluted EPS of $0.29 versus $0.27 a year ago. Gross margin slipped to 54.7% from 55.7%, and operating margin fell to 28.0% from 30.7% as operating expenses grew 24.2%. Energy drink case sales rose 18.0% to 304.9 million cases. The company completed a two-for-one stock split effective August 10, 2026.
- Net sales rose 16.7% YoY to $2.563B in Q3 FY2026.
- Diluted EPS was $0.29, up from $0.27 a year earlier.
- Gross margin declined to 54.7% from 55.7%.
- Operating margin fell to 28.0% from 30.7% as operating expenses grew 24.2%.
- Energy drink case sales rose 18.0% to 304.9 million cases.
Extended-hours last trade of $46.57 is down 2.64% versus the $47.83 regular close, suggesting investors weighed margin compression against strong top-line growth.
Monster delivered double-digit revenue and case volume growth but showed clear margin compression, a key watch item for a premium-valued beverage stock.
Strong 16.7% revenue growth and 18% case volume growth outpace most beverage peers, but margin erosion reflects rising input and operating costs across the energy drink category.
Gross margin fell 100bps YoY and operating expenses grew 24.2%, outpacing revenue growth and pressuring operating margin. Cost of sales rose 19.5%, faster than the 16.7% sales increase.