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Monster Beverage (MNST) · Q2 2026 results and valuation

Share price: $45.40 · 2026-11-11

Monster Beverage is a holding company that develops, markets, and distributes energy drinks, craft beers, and hard seltzers. The company sells its products to bottlers, distributors, and various retail and foodservice customers across multiple markets. Source: 10-K annual report (2026-02-27)

Results Q2 2026 vs Q1 2026 · previous quarter · published 6 Aug 2026 and 7 May 2026

Net income up 2.6% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.

1 · Numbers

+2.6%

Net income vs Q1 2026

Net income 584.5M vs 569.5M

Revenue +7.8%

Why Against the same quarter last year (+19.6%), net income rose primarily because net sales increased 20.8% and gross profit margins improved due to pricing actions and product sales mix, partially offset by higher aluminum can, freight, and fuel costs.

2 · How management spoke

Restrained

Less upbeat than 73% of company calls

Answers to analysts: very upbeat, in line with the script.

Similar to last call.

3 · What stood out

Monster Beverage reported that net sales in China increased 62.5% in USD and 54% on a local currency basis in the second quarter of 2026.

Valuation

Is Monster Beverage undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 9.5% growth a year (3-year revenue growth), the model's fair value is $49.19 a share — the stock trades 8% below it. Today's price assumes 8.4% growth a year.

Current price

$45.40

close of 2026-11-11

Market implies growth of i

+8.4% for 10 yrs

Fair value / share

$49.19

Buy below

$36.90

Price vs fair value

Undervalued 8%

Price vs buy-below price

Overvalued 23%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Website
X

Read between the lines

Figure

Net sales crossed the $2.5 billion threshold for the first time in company history in a single quarter.

Source quote
“We're pleased to report another quarter of strong financial results and cash generation, with net sales crossing the $2.5 billion threshold for the first time in the company's history in a single quarter.”
Figure

U.S. energy drink category sales increased by 7.1% over the same period a year ago according to Nielsen data for the 13-week period ending July 25, 2026.

Source quote
“In the U.S., according to Nielsen, for the recently reported 13-week period through July 25th, 2026, sales in dollars in the energy drink category, including energy shots for all outlets combined, namely convenience, grocery, drug, mass merchandisers, increased by 7.1% versus the same period a year ago.”
Figure

Monster Energy drinks segment net sales increased 21.6% to $2.36 billion in the second quarter of 2026 from $1.94 billion in the second quarter of 2025.

Source quote
“Net sales for the company's Monster Energy drinks segment increased 21.6% to $2.36 billion for the 2026 second quarter, from $1.94 billion for the 2025 second quarter.”
Figure

Net sales in China increased 62.5% in USD and 54% on a local currency basis in the second quarter of 2026 compared to the same quarter in 2025.

Source quote
“Net sales in China in the 2026 second quarter increased 62.5% in USD and increased 54% on a local currency basis as compared to the same quarter in 2025.”
Figure

July 2026 sales were approximately 14.3% higher than July 2025 sales when excluding the alcohol brand segment on a non-foreign currency adjusted basis.

Source quote
“We estimate that July 2026 sales, on a non-foreign currency adjusted basis, excluding the alcohol brand segment, were approximately 14.3% higher than the comparable July 2025 sales and 13.9% higher on a non-foreign currency adjusted basis, including the alcohol brand segment.”

4 more

Key theme

Sales increased by double digits compared to the prior year in all geographic regions, including the Monster brand in the U.S., due to core offerings and product innovations.

Source quote
“Sales increased by double digits compared to the prior year in all geographic regions, and we gained share in many of our global markets, including the Monster brand in the U.S. in the second quarter, reflecting the strength of our core offerings as well as our product innovations.”
Figure

Structurally, Monster Beverage is outperforming the category with growth delivered both by existing SKUs and products, which are 42% of its growth, as well as innovation, which is 58% of its growth, versus the category, which is…

Source quote
“Structurally, we are outperforming the category with growth delivered both by existing SKUs and products, which are 42% of our growth, as well as innovation, which is 58% of our growth, versus the category, which is reliant predominantly on innovation.”
Figure

Growth reached 23% in Europe compared to 5% for full sugar, highlighting a significant performance difference in the European market.

Source quote
“It's growing 23% in Europe, for example, versus 5% for full sugar.”
Key theme

The company expects continued cost increases for aluminum, freight, and fuel until conditions regularize.

Source quote
“We will continue to see increases in aluminum and in freight, and in fuel until such time as things regularize.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Restrained (was upbeat)

Answers to analysts Very upbeat (was very upbeat)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“Net sales in Argentina in the 2026 second quarter decreased 25.6% in USD and decreased 5.7% on a local currency basis.”

“Net sales for the alcohol brand segment decreased 15.2% to $32.2 million for the 2026 second quarter, from $38 million in the 2025 second quarter.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)

Metric	Q2 2026period end 2026-06-30	Q1 2026period end 2026-03-31	Change	Q2 2025	YoY
Revenue	2.54B	2.35B	+7.8%	2.11B	+20.2%
Gross profit	1.42B	1.29B	+9.8%	1.18B	+20.7%
Operating income	740.4M	730.0M	+1.4%	631.6M	+17.2%
Net income	584.5M	569.5M	+2.6%	488.8M	+19.6%
P/E today 16.7	—	—	—	—	—

Topics

Most discussed now

New Number one, maybe just comment on what you think is different about the business operational changes, better coordination with the...
New Monster Beverage feels it is reaching the right target audience.
Monster Beverage's business continues to be supported by strong marketing programs, impactful retail engagement, and its solid partnership…
The global energy drink category remains healthy with continued robust growth.
Anything you can comment there that you think is really driving sustainably stronger results internationally.

Faded since Q1 2026

Fading Monster Beverage points out that certain market statistics that cover single months or 4-week periods may often be materially influenced…
Fading Innovation continues to be an important contributor to category growth, and Monster Beverage maintains a robust innovation pipeline.
Fading The affordable energy brands are a big opportunity for it.

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-11-05 Results of operations; Regulation FD disclosure · SEC 8-K
2026-09-25 Director or officer change · SEC 8-K
Rob Gehring will resign as CEO Americas on November 30, 2026, to join The Coca-Cola Company, with Emelie C. Tirre appointed as interim successor on December 1, 2026.
2026-09-04 Director or officer change · SEC 8-K
Monster Beverage Corporation appointed Matthew S. Burroughs as Chief Accounting Officer and Deputy Chief Financial Officer on September 3, 2026.
2026-08-06 Results of operations; Regulation FD disclosure · SEC 8-K
Monster Beverage Corporation reported net sales of $2.54 billion for the second quarter of 2026, an increase of 20.2 percent from $2.11 billion in the same period last year.
2026-07-08 Other events · SEC 8-K
Monster Beverage Corporation announced a 2-for-1 common stock split, to be distributed as a 100% stock dividend to shareholders of record on July 24, 2026.
2026-06-04 Director or officer change · SEC 8-K
Mark J. Hall will resign as a director on August 1, 2026, and as an employee of Monster Energy US LLC on April 1, 2027, resulting in the Board size reducing from ten to nine.
2026-05-15 Shareholder vote results; Other events · SEC 8-K
Monster Beverage Corporation authorized a new share repurchase program for up to $500.0 million in common stock, with $400.0 million remaining in the previous program as of May 14, 2026.
2026-05-07 Results of operations; Regulation FD disclosure · SEC 8-K
Monster Beverage Corporation reported net sales of $2.35 billion for the first quarter of 2026, an increase of 26.9 percent from $1.85 billion in the same period of the previous year.

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

at least the end of 2026

continued modest sequential increase in aluminum costs

Source quote
“However, based on current aluminum pricing and the Midwest premium, we expect a continued modest sequential increase in our aluminum costs through at least the end of 2026.”
upcoming NACS Show

sharing of robust innovation pipeline

Source quote
“Looking ahead, we believe we have a robust innovation pipeline that we will share at the upcoming NACS Show as we have done in prior years.”
2026 fourth quarter

implementation of selective pricing actions

Source quote
“In the United States, we have initiated discussions with our partners and customers to implement selective pricing actions effective during the 2026 fourth quarter.”
2026

innovation coming in the fall

Source quote
“For 2026, we have some innovation coming in the fall, in 2027, we have a full innovation calendar that we will be presenting and looking forward to sharing with you at NACS in October.”
later this year

exciting LTO plan for the brand

Source quote
“We have an exciting LTO plan for the brand as well later this year, and NPD for next year as well, which you'll see at NACS.”