Pricing Actions Boost Margins
Price increases implemented in Q4 2025 in the US and select international markets positively impacted gross profit margins in 2026, partially offsetting higher input costs.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Monster Beverage's Q2 FY2026 performance was highlighted by continued global demand for its Monster Energy drinks, with energy drink case sales growing 22.3% YoY. Management attributed the revenue increase to higher consumer demand and the benefit of pricing actions implemented in late 2025, which helped lift gross margin by 20 basis points to 55.9%. Operating margin, however, contracted 73 basis points to 29.2% as selling and marketing expenses surged to support brand building, while international markets expanded 34.6% and now represent 46% of total net sales. The quarter's results reflect a balance between robust top-line momentum and rising investment in marketing and distribution.
Revenue
$2.54B
+20.17% YoY
Gross Margin
55.9%
+0.2 pts YoY
Operating Income
$740.44M
+17.23% YoY
Source: SEC XBRL
Monster Beverage (MNST) reported Q2 FY2026 revenue of $2.54B, up 20.2% year over year. Operating margin was 29.2%, down 0.7 points from 29.9% a year earlier. MNST's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 0.60 | 0.59 | Beat +1.1% |
| Mar 2026 | 0.58 | 0.54 | Beat +8.3% |
| Dec 2025 | 0.51 | 0.49 | Beat +3.5% |
| Sep 2025 | 0.56 | 0.49 | Beat +13.7% |
Reported EPS of $0.60 versus the $0.59 analyst consensus — a +1.1% beat for Jun 2026.
4 reported segments · SEC XBRL
Segment revenue totals $2.54B, which is the $2.54B of consolidated revenue on the income statement. The profit column adds up to the consolidated figure as well.
Profit above is reported as gross profit, the measure MNST itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Price increases implemented in Q4 2025 in the US and select international markets positively impacted gross profit margins in 2026, partially offsetting higher input costs.
Source: 10-Q Item 2 MD&A
Net sales to customers outside the US surged 34.6% YoY to $1.16B, representing 46% of total net sales, with currency-adjusted growth of 29.0%.
Source: 10-Q Item 2 MD&A
Selling and marketing expenses rose by $72.3M, driven by higher digital, social, and endorsement spending to broaden consumer reach and increase household penetration.
Source: 10-Q Item 2 MD&A
Despite a 15.2% revenue decline, the Alcohol Brands segment reduced its operating loss by nearly 50% to $7.3M, mainly due to lower administrative expenses.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Coca-Cola Europacific Partners accounted for 16% of net sales in Q2 FY2026. A reduction in purchases by this or other large customers could materially impact revenue and profitability.
Source: 10-Q Item 2 MD&A
The Monster Energy Drinks segment contributed 92.9% of total revenue, making the company highly dependent on the continued success and consumer appeal of its flagship energy drink brands.
Source: 10-Q Income Statement (XBRL)
Increased aluminum can costs and freight-in costs pressured cost of sales, which rose 19.5% YoY. Sustained input cost inflation could erode margins if not fully offset by pricing actions.
Source: 10-Q Item 2 MD&A
International sales now account for 46% of revenue, exposing results to currency fluctuations. The company reported $6.0M in foreign currency transaction losses in Q2 FY2026.
Source: 10-Q Item 2 MD&A
The Alcohol Brands segment continues to shrink, with sales down 15.2% YoY and an operating loss of $7.3M. Persistent declines could weigh on overall profitability and require restructuring.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.54 $B | 2.11 $B | +20.17% |
Cost of Revenue $B | 1.12 $B | 0.94 $B | +19.53% |
Gross Profit $B | 1.42 $B | 1.18 $B | +20.67% |
Operating Income $M | 740.44 $M | 631.62 $M | +17.23% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Monster Beverage (MNST) delivered strong Q1 FY2026 results with revenue surging 26.9% YoY to $2.35B, driven by robust top-line growth, while operating income rose 28.1% to $730M despite a slight compression in gross margin.
Monster Beverage (MNST) delivered strong FY2025 results with revenue growing 10.7% to $8.29B and operating income surging 25.3% to $2.42B, driven by meaningful margin expansion and a robust balance sheet bolstered by $2.09B in cash.
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