Key financial results
- Net sales: Net sales for the third quarter of 2026 increased 16.7% to $2.56 billion compared to $2.20 billion in the third quarter of 2025.
Net sales were $2.56 billion for the 2026 third quarter was 16.7% higher than net sales of $2.20 billion
- Gross profit: Gross profit margin was 54.7% for the third quarter of 2026 compared to 55.7% in the same period of 2025.
Gross profit as a percentage of net sales for the 2026 third quarter was 54.7% compared with 55.7%
- EPS: Net income per diluted share increased 7.8% to $0.29 for the third quarter of 2026 from $0.27 in the third quarter of 2025.
Net income per diluted share for the 2026 third quarter increased 7.8% to $0.29 from $0.27
- Operating income: Operating income for the third quarter of 2026 increased 6.4% to $718.7 million from $675.4 million in the 2025 comparative quarter.
Operating income for the 2026 third quarter increased 6.4% to $718.7 million from $675.4 million
- October sales: October 2026 sales, excluding alcohol brands and on a non-foreign currency adjusted basis, were approximately 11.6% higher than October 2025 sales.
We estimate that October 2026 sales on a non-foreign currency adjusted basis, excluding the alcohol brand segment, were approximately 11.6% higher
Business segment results
- Monster Energy Drinks: Monster Energy Drinks segment net sales increased 17.1% to $2.37 billion for the third quarter of 2026 from $2.03 billion a year earlier.
Net sales for the company's Monster Energy Drinks segment increased 17.1% to $2.37 billion
- Strategic Brands: Strategic Brands segment net sales increased 19.8% to $156.4 million for the third quarter of 2026 from $130.5 million in the prior year period.
Net sales for the company's Strategic Brands segment increased 19.8% to $156.4 million
- Alcohol Brands: Alcohol Brands segment net sales decreased 13.6% to $28.5 million for the third quarter of 2026 from $33.0 million in the third quarter of 2025.
Net sales for the alcohol Brands segment decreased 13.6% to $28.5 million
- North America: U.S. and Canada net sales increased 9.5% in the third quarter of 2026 compared to the third quarter of 2025.
net sales increasing 9.5% in the 2026 third quarter compared to the 2025 third quarter
- EMEA: EMEA net sales increased 24.9% in dollars and 25.1% on a currency-neutral basis for the third quarter of 2026 compared to 2025.
Our net sales in the region at 2026 third quarter increased by 24.9% in dollars and increased 25.1% on a currency-neutral basis
- Asia Pacific: Asia Pacific net sales increased 12.3% in dollars and 14.9% on a currency-neutral basis for the third quarter of 2026 compared to 2025.
- Latin America: Latin America net sales increased 48.8% in dollars and 40.0% on a currency-neutral basis for the third quarter of 2026 compared to 2025.
Net sales in Latin America, including Mexico and the Caribbean, in the 2026 third quarter increased 48.8% in dollars and increased 40.0% on a currency-neutral basis
Capital allocation
- Share repurchase: During the third quarter of 2026, the company repurchased 2.3 million shares of common stock at an average purchase price of $43.8 per share for approximately $100 million.
we repurchased 2.3 million shares of our common stock at an average purchase price of $43.8 per share for total amount of approximately $100 million
- Repurchase authorization: As of November 2026, approximately $800 million remained available for repurchase under the previously authorized repurchase program.
As of November 2026, approximately $800 million remained available for repurchase under the previously authorized repurchase program.
Industry trends and dynamics
- Category growth: The global energy drink category remains healthy with robust growth, driven by increasing household penetration and functionality.
The global energy drink category remains healthy with continued robust growth.
- U.S. scanner data: In the United States, energy drink sales in dollars across all outlets increased 12.4% for the 13-week period through October 24, 2026.
Competitive landscape
- Market share: Monster is gaining market share globally, with EMEA experiencing value share gains of 190 basis points in the third quarter.
the MEC portfolio of brands gained 190 basis points of value market share across the region in the 2026 third quarter
- Zero sugar leadership: The company remains the market leader in the zero sugar segment in Europe with a 46.0% value share.
we are the market leader in the Zero Sugar segment of the category with a 46.0% value share
Macroeconomic environment
- Tariffs: Tariffs had a modest impact on operating results in the third quarter, though the tariff landscape remains complicated and dynamic.
During the third quarter of 2026, the impact of tariffs and the increase in the price of aluminum on our operating results was modest.
- Foreign currency: Foreign currency exchange rates had a favorable impact on net sales of $8.1 million for the third quarter of 2026.
Net changes in foreign currency exchange rates had a favorable impact on net sales for the 2026 third quarter of $8.1 million.
Growth opportunities and strategies
- FSOP: The company is expanding its food service on-premise footprint with recent collaborations including Carl's Jr., Tim Hortons, Subway, and Wingstop.
We also continued to gain traction in FSOP in the region with recent collaborations with Subway restaurants in the U.K. and Ireland and Wingstop in France.
- Innovation: Monster has a robust pipeline of new product launches planned for 2027, including protein drinks, new Ultra variants, and brand expansions.
Financial guidance and outlook
- Guidance: Management did not give numeric financial guidance figures on the call.
Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Net Sales | $2.56 billion | 16.7% higher |
| Gross Profit Margin | 54.7% | Compared with 55.7% |
| Net Income Per Diluted Share | $0.29 | 7.8% higher |
| Adjusted Net Income Per Diluted Share | $0.30 | 8.5% higher |
| International Net Sales | $1.20 billion | 28.1% higher |
| Operating Income | $718.7 million | 6.4% higher |
How management sounded
Balanced (+25 on our -100 to +100 scale). Management highlighted strong financial results and global sales growth, though tempered by ongoing aluminum cost headwinds and modest margin pressures. Management sounded more upbeat than on 6% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- Sequential increases in aluminum costs and Midwest premiums through at least the first quarter of 2027.
- The ongoing legal matter in India following FSSAI orders regarding energy drink labeling.
- The implementation and consumer reception of U.S. price adjustments enacted on November 1, 2026.
Earlier calls
- Q2 FY2026 (Aug 6, 2026), tone Balanced: Monster Beverage reported second quarter net sales of $2.54 billion, an increase of 20.2% year-over-year, driven by double-digit growth across all geographic regions.
