Energy drink maker Monster Beverage reported fourth-quarter results that exceeded Wall Street expectations, driven by sustained demand for energy and sugar-free beverages despite broader economic uncertainty.
For the quarter ended December 31, the company posted net sales of $2.13 billion, marking a 17.6% year-on-year increase and surpassing analysts’ estimates of $2.04 billion, according to LSEG data. Adjusted earnings per share came in at 51 cents, ahead of the projected 48 cents.
Core Energy Segment Leads Growth
Monster’s flagship Monster Energy Drinks division, its largest revenue contributor, recorded an 18.9% increase in sales to $1.99 billion during the quarter. The growth reflects continued consumer preference for energy and reduced-sugar options over traditional carbonated soft drinks, even as inflationary pressures weigh on household spending.
However, the company’s alcohol brands segment saw sales decline 16.8% year-on-year to $29 million, partially offsetting gains in its core portfolio.
Margins and Cost Outlook
Gross margin improved slightly to 55.5%, compared with 55.3% in the same period last year. The uptick was supported by pricing actions and supply chain efficiencies that helped counter higher aluminium costs.
Chief Executive Officer Hilton Schlosberg indicated that while current tariffs are not expected to materially affect operating results, the company anticipates a modest increase in costs during at least the first half of 2026 compared to the fourth quarter of 2025. Monster plans to continue managing aluminium tariff exposure through pricing adjustments and hedging strategies.
Despite the earnings beat, shares of the company slipped around 2% in extended trading.
With resilient demand for functional beverages and sugar-free offerings, Monster Beverage continues to demonstrate strength in its core energy category, even as it navigates cost pressures and softer performance in its alcohol portfolio.
