Ab Inbev Misses Q2 Earnings & Revenues Estimates, Reaffirms 2026 View

Anheuser-Busch InBev SA/NV BUD, aka AB InBev, reported second-quarter 2026 results, wherein earnings per share and revenues missed the Zacks Consensus Estimate. Both top and bottom lines were flat year over year.

BUD reported second-quarter 2026 underlying earnings of 98 cents per share, flat year over year. The figure missed the Zacks Consensus Estimate of $1.09 by 10.1%. Revenues of $15 billion were flat year over year and missed the consensus mark of $16.29 billion by 7.9%.

Shares of this Zacks Rank #3 (Hold) company have gained 12.3% in the past three months compared with the industry’s 7.4% growth.

Image Source: Zacks Investment Research

BUD's Organic Growth Offsets Reported Weakness

On an organic basis, revenues increased 5.6% in the quarter. Revenue per hectoliter rose 4.2%, reflecting disciplined revenue management and a favorable mix from premiumization and Beyond Beer products.

Total volumes increased 0.9% organically. Beer volumes rose 1.1%, while non-beer volumes declined 1.1%. The company recorded its highest-ever second-quarter volumes in Mexico, Colombia and Ecuador, while beer volumes in Brazil returned to growth.

Combined revenues from AB InBev’s megabrands increased 6.2%. Corona revenues grew 17% outside its home market, while Stella Artois and Michelob Ultra advanced 19% and 21%, respectively, outside their domestic markets.

The above-core beer portfolio generated 6.9% revenue growth. Corona delivered double-digit volume growth in 37 markets, while Michelob Ultra expanded across Latin America. About 40% of Michelob Ultra’s volume growth came from markets outside the United States.

AB InBev Expands New Growth Platforms

No-alcohol beer revenues increased 27%, supporting growth in the company’s broader Balanced Choices portfolio. Revenues from low-carb, low-calorie, sugar-free, gluten-free and no-alcohol brands collectively rose 13%.

Beyond Beer revenues jumped 44%, led by Flying Fish and Cutwater. Cutwater posted triple-digit revenue growth and was the second-largest brand contributor to AB InBev’s overall revenue growth in the quarter.

BUD's Digital Ecosystem Gains Scale

Digitization remained a notable growth vector in the quarter. BEES was operating in 30 markets at the end of June, with 72% of revenues captured through B2B digital platforms. The platform processed $15 billion in gross merchandise value during the quarter, up 16% year over year.

BEES Marketplace gross merchandise value climbed 50% to $1.2 billion from third-party products. The company’s direct-to-consumer platforms served 13 million active consumers and generated $165 million in revenues, representing 12% growth.

AB InBev's Margins Show Operating Leverage

Gross profit increased 7.5% organically, while the gross margin expanded 99 basis points (bps) to 57.5%. Normalized EBIT advanced 8% to $4.60 billion, with the normalized EBIT margin improving 58 bps to 27.6%.

Normalized EBITDA rose 5.8% to $5.94 billion. The normalized EBITDA margin expanded 4 bps to 35.6%, as overhead discipline offset foreign-exchange pressures, and supported higher sales and marketing investments.

Our model had anticipated a rise of 9.5% in normalized EBIT and 7.6% in normalized EBITDA for the second quarter.

BUD Strengthens Cash Flow & Leverage

The free cash flow for the first half of 2026 increased by $2.53 billion to $3.88 billion. The cash flow from operating activities rose to $5.24 billion from $2.7 billion a year earlier, reflecting higher profit and improved working-capital movements.

Net debt totaled $64.2 billion at the end of June. The net debt-to-normalized EBITDA ratio improved to 2.86 from 3.27 a year earlier. AB InBev also completed $1.9 billion of its $6-billion share repurchase program as of July 24.

AB InBev Reaffirms Its 2026 Outlook

Management expects EBITDA growth of 4-8% in 2026, in line with its medium-term outlook. The projection reflects its current view of inflation and broader macroeconomic conditions.

The company anticipates a normalized effective tax rate of 26-28% and net capital expenditure of $3.5-$4 billion. Net pension interest and accretion expenses are projected at $190-$220 million per quarter, while the average gross debt coupon is expected to be 4%.

Three Stocks Looking Good

We have highlighted three better-ranked stocks from the Consumer Staples sector, namely The Vita Coco Company Inc. COCO, Primo Brands Corporation PRMB and Fomento Economico Mexicano FMX.

Vita Coco develops, markets and distributes coconut water and other beverage products, led by the Vita Coco brand. The company currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Vita Coco’s current financial-year sales and earnings is expected to rise 31.6% and 64.7%, respectively, from the year-ago reported figures. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.

Fomento Economico Mexicano, alias FEMSA, is a leading Latin American beverage and retail company that operates Coca-Cola bottling businesses, OXXO convenience stores, health and beauty outlets, fuel stations, and digital financial services across multiple countries. The company currently has a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for FMX’s current financial-year sales and earnings indicates growth of 17.3% and 131% from the prior-year reported level. FMX delivered a trailing four-quarter negative earnings surprise of 0.2%, on average.

Primo Brands is a leading North American branded beverage company focused on healthy hydration. The company currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Primo Brands’ current financial-year sales indicates growth of 1.6% from the year-ago reported number. PRMB delivered an average earnings surprise of 1.4% in the trailing four quarters.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research