AB InBev Q4 Earnings Beat on Business Momentum, Revenues Miss

Anheuser-Busch InBev SA/NV BUD, aka AB InBev, reported fourth-quarter 2025 results, wherein earnings per share (EPS) surpassed the Zacks Consensus Estimate while revenues missed the same. However, the top and bottom lines improved year over year. Bottom-line growth reflected positive business momentum, owing to the strength of its diversified footprint and consumer demand for its megabrands.

AB InBev reported an underlying EPS (normalized EPS, excluding mark-to-market gains and losses related to the hedging of share-based payment programs and the impacts of hyperinflation) of 95 cents, up 7.5% year over year. The bottom line beat the Zacks Consensus Estimate of 92 cents. On a constant-currency basis, underlying EPS improved 2.1%.

Revenues of $15.55 billion missed the Zacks Consensus Estimate of $15.58 billion but increased 4.8% year over year. Organic revenues increased 2.5% year over year. Growth across markets was driven by a focus on ongoing premiumization and disciplined revenue management, contributing to higher revenue per hectoliter (hl).

Shares of this Zacks Rank #3 (Hold) company have gained 19.6% in the past three months compared with the industry’s 14.4% growth.

BUD’s Q4 Details

Revenues per hl improved 4% year over year in the quarter, on an organic basis, backed by disciplined revenue management and premiumization. The company’s organic volume fell 1.5%, including a 1.9% decline in beer volume, offset by a 0.6% rise in the non-beer volume. The decline in beer volumes was primarily driven by weak demand in key markets, reflecting a constrained consumer environment and the impacts of unseasonable weather.

Revenues reflected the strong performance of its premium and super premium beer brands. The company’s revenues for the megabrands increased 4.1% year over year in 2025. The company’s above-core beer portfolio represented 35% of 2025 revenues and delivered low-single-digit revenue growth in the year. Corona drove results with 8.3% revenue growth outside Mexico and double-digit volume expansion in 30 markets. Michelob Ultra became the top volume share gainer in the United States, now ranking as the industry’s leading brand by volume. In Brazil, the company’s premium and above portfolio maintained share gains and now leads the premium category.

AB InBev has been keen on making investments in its portfolio over the years and rapidly growing its digital platform, including BEES and Zé Delivery. Its digital transformation initiatives have been on track, with B2B digital platforms contributing about 72% to its revenues in 2025. Its omnichannel, direct-to-consumer ecosystem of digital and physical products generated $1.3 billion in revenues in 2025.

BUD has been focused on expanding its Beyond Beer portfolio, which has also been aiding the top line. Notably, the Beyond Beer portfolio recorded a 23% revenue rise in 2025, driven by triple-digit growth of Cutwater in the United States.

Anheuser-Busch InBev SA/NV Price, Consensus and EPS Surprise

 

Anheuser-Busch InBev SA/NV price-consensus-eps-surprise-chart | Anheuser-Busch InBev SA/NV Quote

The cost of sales rose 4.5% on a reported basis to $6.9 billion and 2.6% on an organic basis. SG&A expenses increased 4% year over year on a reported basis and 1.2% on an organic basis to $4.8 billion.

Our model estimated a flat SG&A expense rate at 31%. In dollar terms, SG&A expenses were expected to rise 7.5% year over year.

The company’s normalized earnings before interest, taxes, depreciation and amortization (EBITDA) were $5.47 billion, which improved 4.3% year over year on a reported basis and 2.3% on an organic basis. The normalized EBITDA margin contracted 10 bps year over year to 35.2%, on both reported and organic basis. The organic EBITDA margin benefited from cost efficiencies and disciplined overhead management.

As of Feb. 9, 2026, the company repurchased roughly $635 million of shares under the $6-billion buyback program launched on Oct. 30, 2025. Additionally, the board proposed a final dividend of €1.00 per share, subject to shareholder approval at the AGM on April 29, 2026. Together with the interim dividend of €0.15 per share paid out in November 2025, this brings the total proposed dividend for 2025 to €1.15 per share.

BUD’s 2026 Outlook

Management remains confident about the long-term potential of the beer category, supported by structural growth tailwinds and its unique role in bringing people together. Strong execution has driven consistent performance, enhanced capital allocation flexibility and supported higher shareholder returns while continuing to deleverage.

Entering 2026 from a position of strength, with engaged teams, improving market momentum and unmatched global platforms, the company is well-positioned to deepen consumer connections and drive sustained growth.

For 2026, AB InBev expects year-over-year EBITDA growth of 4-8%, in line with its medium-term outlook. This reflects the assessment of inflation and macroeconomic conditions.

The company expects net pension interest expenses and accretion expenses of $190-$220 million per quarter in 2026, based on currency and interest rate fluctuations. It anticipates an average gross debt coupon of nearly 4% in 2026.

Management continues to expect a normalized effective tax rate of 26-28% for 2026. Net capital expenditure is projected to be $3.5-$4 billion in 2026.

Stocks to Consider in the Consumer Staples Space

We have highlighted three better-ranked stocks from the Consumer Staples sector, namely Carlsberg CABGY, PepsiCo Inc. PEP and Monster Beverage MNST.

Carlsberg is a brewing company and has operations in Northern and Western Europe, Eastern Europe, and Asia. It currently sports 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 Carlsberg’s current financial-year sales and earnings indicates growth of 33.4% and 16.1%, respectively, from the prior-year reported levels.

PepsiCo is one of the leading global food and beverage companies. The company currently has a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for PepsiCo’s current financial-year sales and earnings is expected to rise 4.5% and 5.4%, respectively, from the year-ago reported figures. PEP delivered a trailing four-quarter earnings surprise of 1.2%, on average.

Monster Beverage is a marketer and distributor of energy drinks and alternative beverages. The company currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Monster Beverage’s current financial-year sales and earnings indicates growth of 9.5% and 22.8%, respectively, from the year-ago numbers. MNST delivered a trailing four-quarter earnings surprise of 5.5%, on average.

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

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