CELH Stock Up 65% in 2025: How Should Investors Plan for 2026?

Celsius Holdings, Inc. CELH has been one of the standout performers in the beverage space this year, supported by accelerating retail momentum, a stronger innovation engine and an expanding distribution footprint. The company’s stock has surged a solid 65.1% this year against the industry’s decline of 15.7%, the Zacks Consumer Staples sector’s drop of 2.5% and the S&P 500’s gain of 18.7%.

This functional energy drink maker’s shares have climbed sharply as investors continue to reward the company’s rapid portfolio transformation and broadening partnership with PepsiCo, Inc. PEP. These upsides have also helped CELH outperform peers like The Coca-Cola Company KO, PepsiCo and Keurig Dr Pepper Inc. KDP. While KO shares have jumped 12.5% in 2025, PEP and KDP have declined 4.9% and 9.5%, respectively.

What’s Driving CELH Stock Higher?

Celsius Holdings’ surge this year is anchored in fundamentals that continue to outperform the broader beverage category. Its core CELSIUS brand remains one of the fastest-growing products in energy drinks, with strong market-share gains across convenience, mass and grocery channels. Retail takeaway stayed robust through the third quarter of 2025, supported by improved shelf placement, expanded cooler presence and enhanced merchandising related to PepsiCo’s distribution strength.

CELH is moving aggressively to accelerate portfolio expansion and integration. Alani Nu’s transition into PepsiCo’s DSD network beginning Dec. 1 is expected to significantly broaden the brand’s reach in early 2026. Rockstar Energy gives Celsius Holdings entry into a broader consumer base and new revitalization opportunities. 

Innovation is another powerful growth engine. Limited-time flavors such as Spritz Vibe, along with seasonal drops and quick-turn launches, continue to outperform expectations and attract incremental consumers. The expanded flavor pipeline — across both CELSIUS and Alani Nu — gives the company constant relevance among younger demographics that value clean-label ingredients, functional benefits and taste variety.

Celsius Holdings is also benefiting from a structurally improved margin profile. The company’s gross margin held above 50% in the third quarter as the company shifted toward higher-quality revenues, lowered promotional intensity and captured efficiencies in freight, warehousing and co-packing. Strength in direct-store delivery, combined with clearer co-manufacturing plans, has provided better cost alignment and early procurement synergies.

International markets add another layer of long-term growth. Brand visibility in Australia, the Nordics and select European markets continues to rise, while early distributor feedback remains strong. These efforts are laying the groundwork for wider global penetration and a multi-year expansion runway.

Near-Term Hurdles for Celsius Holdings

Despite solid demand, near-term volatility persists. Management expects the fourth quarter to be “noisy,” pressured by integration costs, distributor wind-downs, inventory returns and timing effects related to Alani Nu’s movement into PepsiCo’s system. Tariff-related pressures, temporary co-packing inefficiencies, higher freight and elevated marketing spend are likely to weigh on margins. 

For Rockstar, meaningful margin contributions are unlikely until 2026 as production and sourcing are optimized. These factors could make quarterly comparisons uneven, even as consumer takeaway remains healthy.

CELH’s Valuation

Celsius Holdings’ forward 12-month P/E of 28.77X sits well above the industry average of 14.4X. Its Value Score of C suggests limited room for multiple expansion in the near term. By comparison, major beverage peers trade at more modest levels — PepsiCo at 17.03X, Keurig Dr Pepper at 13.45X and Coca-Cola at 21.91X. While Celsius Holdings commands a premium for its growth profile, this makes the stock more vulnerable if execution slips or category growth slows.

How Are Estimates for CELH Trending?

Analysts’ earnings estimates for Celsius Holdings have moved higher, suggesting that they see current challenges as temporary and expect the company to sustain strong growth into 2026. The Zacks Consensus Estimate for 2025 and 2026 EPS has risen over the past 60 days.

CELH: In a Nutshell

Celsius Holdings continues to stand out for its rapid growth, strong brand pull and expanding presence across retail channels. These factors give the company solid momentum moving into 2026. However, the next few quarters could stay uneven due to integration expenses, distributor realignments and higher operating costs. With valuation elevated and visibility limited in the near term, some investors may choose to wait for clearer margin stability before adding exposure. However, the long-term narrative remains firmly intact.

Celsius Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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