Monster Beverage Corporation (MNST) reported net sales of $2.56 billion for the three months ended September 30, 2026, a 16.7 percent increase from $2.20 billion a year earlier.

That pace was slower than the 20.2 percent year-over-year rise in the second quarter and the 26.9 percent increase in the first quarter. On a foreign-currency-adjusted basis, net sales rose 16.3 percent. Net changes in foreign currency exchange rates added $8.1 million to reported sales.

Excluding the Alcohol Brands segment, net sales increased 17.1 percent, or 16.7 percent on a currency-adjusted basis.

Chief Executive Officer Hilton H. Schlosberg said the company delivered strong top-line performance in domestic and international markets, with record quarterly net sales overall. Net sales to customers outside the United States rose 28.1 percent to $1.20 billion, or about 47 percent of total net sales, compared with 43 percent a year earlier. Latin America net sales increased 48.8 percent in dollars, which the company said was primarily driven by operations in Brazil.

The Monster Energy Drinks segment, the company’s core energy-drink portfolio, posted net sales of $2.37 billion, up 17.1 percent from $2.03 billion a year earlier. Currency added about $7.5 million to that segment. Strategic Brands, which includes energy drinks acquired from The Coca-Cola Company plus Predator and Fury, rose 19.8 percent to $156.4 million. Alcohol Brands net sales fell 13.6 percent to $28.5 million. The Other segment declined 29.5 percent to $4.8 million.

Energy drink case sales were 304.9 million 192-ounce case equivalents, compared with 258.4 million a year earlier. Average net sales per case, excluding Alcohol Brands and Other segment net sales, was $8.30.

Gross profit as a percentage of net sales was 54.7 percent, versus 55.7 percent a year earlier. The company said the decline was primarily the result of increased aluminum can costs, geographical sales mix and increased freight-in costs, partially offset by pricing actions. Adjusted gross profit excluding Alcohol Brands was 54.9 percent of adjusted net sales, versus 56.2 percent.

Distribution expenses were $116.3 million, or 4.5 percent of net sales, compared with $82.6 million, or 3.8 percent, a year earlier, which the company attributed primarily to increased freight and fuel. Selling expenses were $260.1 million, or 10.1 percent of net sales, versus $214.6 million, or 9.8 percent, on higher social, digital, media and sponsorship spend. General and administrative expenses were $305.7 million, or 11.9 percent of net sales, and included a $19.9 million property and equipment impairment and $14.7 million of digital-transformation expenses.

Operating income increased 6.4 percent to $718.7 million, from $675.4 million a year earlier. Operating income as a percentage of net sales was 28.0 percent, versus 30.7 percent. Adjusted operating income rose 7.1 percent to $748.1 million.

Net income increased 8.4 percent to $568.4 million, from $524.5 million a year earlier. Net income per diluted share rose 7.8 percent to $0.29, versus $0.27. Adjusted net income increased 9.0 percent to $591.1 million, and adjusted diluted earnings rose 8.5 percent to $0.30. The effective tax rate was 24.6 percent.

During the third quarter the company purchased about 2.3 million shares at an average price of $43.87, for about $100.0 million. As of November 4, 2026, about $800.0 million remained available under previously authorized repurchase programs. A two-for-one stock split, effected as a 100 percent stock dividend, was issued on August 10, 2026.

Schlosberg said the company continued increased marketing investments across social, digital and media platforms and launched additions to the Monster Energy, Java Monster, Mother and FLRT product lines.