Anheuser-Busch InBev SA/NV Earnings - Q1 2026 Analysis & Highlights
Anheuser-Busch InBev delivered strong Q1 2026 results with solid top and bottom-line growth, driven by portfolio rebalancing toward premium and Beyond Beer segments, disciplined revenue management, and strategic investments in megabrands, while maintaining confidence in full-year guidance despite macroeconomic headwinds and preparing for FIFA World Cup activation.
Key Financial Results
Revenue increased by 5.8% with disciplined revenue management and positive mix from premiumization and Beyond Beer.
Underlying EPS increased by 20.8% to reach $0.97, an all-time high first quarter EPS for the business.
Beer volumes increased by 1.2% with record high first quarter volumes in Mexico, Colombia, Brazil, South Africa and Peru, amongst others.
Total volumes increased by 0.8% and EBITDA increased by 5.3%, with flattish margins as disciplined revenue and cost management enabled increased sales and marketing investments and offset transactional FX headwinds.
Revenue per hectoliter growth of 4.5% comprised approximately 3% to 3.5% from inflation with the remainder driven by mix from growing segments and brands.
Business Segment Results
North America (US): Sales to retailer volumes grew with the company as the number one share gainer in total alcohol, gaining share in both beer and spirits. Michelob Ultra and Busch Light were top 2 volume share gainers. Beyond Beer portfolio delivered revenue growth in the high-60s, led by Cutwater, which grew revenue in the triple digits and was the number one share gaining brand in total spirits industry in Q1 2026.
Middle Americas (Mexico): Record high volumes drove high single-digit top and mid-single digit bottom line growth as the company continued to outperform the industry.
Middle Americas (Colombia): Record high volumes drove double-digit top and bottom line growth.
Middle Americas (Brazil): Market share gain and an improved industry drove record high beer volumes and double-digit bottom line growth. Premium and super premium beer brands led performance and delivered low-20s volume growth.
Europe: Volumes grew by low single digits as market share gains in premiumization offset a soft industry to deliver both top and bottom line growth.
South Africa: Momentum continued with record high volumes driving mid-single-digit top line growth. Premium and super premium beer brands grew volumes by mid-20s.
APAC (China): Volume trend improved as investments increased to rebuild momentum, but volumes declined by 1.5%, estimated to have underperformed a slightly growing industry.
India: Volume growth was above 30%, with Budweiser becoming a top 5 market globally and approaching 20% market share, driven by organic growth mostly in premium and super premium segments.
Megabrands: Net revenue increased by 8.2%. Corona continued to drive premiumization across markets, growing revenue by 16% outside of Mexico and growing volumes by double digits in 32 markets.
Non-alcohol beer: Portfolio outperformed the industry and delivered a 27% revenue increase, led by Corona Cero globally and Michelob ULTRA Zero in the US.
BEES Marketplace: GMV increased by 55% to reach more than $1 billion in quarterly GMV. BEES captured $14.6 billion in gross merchandise value, a 15% increase versus last year. Third-party product sales increased by 55% versus last year to reach $1.1 billion.
DTC business: Digital platforms served 12 million consumers and generated $139 million in revenue. DTC marketplace has annualized GMV of $160 million.
Capital Allocation
Bond portfolio: Remains well distributed with no relevant medium-term refinancing needs, no bonds maturing in 2026, a weighted average maturity of 13 years, and no financial covenants.
Credit rating upgrade: Moody's recently upgraded the company's credit rating from A3 to A2 in recognition of consistent financial performance and balance sheet strength.
Sales and marketing investments: The company increased marketing investments to accelerate momentum, with concentrated spending expected in Q2 and Q3 around the FIFA World Cup.
Industry Trends and Dynamics
Beer category share gains: According to IWSR, the beer category gained 60 basis points in share of alcohol beverages in 2025, and an additional 10 basis points when including the fast-growing Beyond Beer category. Combined, beer and Beyond Beer have gained more than 300 basis points of share since 2019.
Consumer participation: The number of consumers participating in the alcohol category remained stable year-over-year, and beer participation has remained broadly stable.
Category growth drivers: Beer plays an important role in bringing people together and creating moments of celebration, with favorable demographics, economic growth, and opportunities to increase category participation supporting future volume growth.
Non-alcohol beer opportunity: With an estimated 60% of volume coming from new occasions and new consumers, non-alcohol beer is a key opportunity to develop the category and drive incremental volume growth.
Competitive Landscape
Market share performance: The company gained or maintained share in 75% of its markets.
Competitive advantages: The combination of leading megabrands and platforms, diversified geographic footprint with 70% of EBITDA generated in emerging and developing markets, global scale, superior local execution, disciplined revenue and cost management, consistent investment in megabrands, and best-in-class digital capabilities position the company well.
Portfolio rebalancing: Over 40% of revenues come from premium, Balanced Choices and Beyond Beer, which are growing at double-digit rates. In the US, over 40% to 45% of the business is above core/mainstream, with brands approaching 50% of the business.
Macroeconomic Environment
Consumer sentiment and inflation: Overall consumer sentiment was more benign in Q1 2026, but energy costs and potential inflation implications will have a delayed impact of three to six months on consumers. The company prices with inflation and will adjust plans if inflation accelerates.
FX headwinds: Transactional FX headwinds were offset by disciplined revenue and cost management. The company has a hedging policy providing good visibility on FX movements, with more cost pressures anticipated in H1 particularly in Mexico and Brazil rather than H2.
Cost pressures: The company took proactive measures in revenue and cost management to balance the year between H1 and H2.
Growth Opportunities and Strategies
Lead and grow the category: The company's megabrands continue to outperform, with consistent execution of category expansion levers including offering superior core brands, innovating in Balanced Choices, and expanding premium and Beyond Beer portfolios.
Digitize and monetize ecosystem: Customer behavior and purchase trends captured by BEES enable the company to leverage AI capabilities to execute commercial strategy, with over 20 billion AI-driven touch points on an annualized basis. The company has started to commercialize third-party products on DTC platforms, still scratching the surface with significant total addressable market opportunity.
Optimize business: Through disciplined resource allocation and overhead management, the company offset transactional FX headwinds to maintain superior margins while increasing sales and marketing investments. The combination of leadership advantages, disciplined revenue management, continued premiumization and efficient operating model creates opportunity for further margin expansion over time.
Long-term portfolio investments: The company has made long-term investments in portfolio, digital capabilities, and megabrands, with execution enabled by strong culture, team focus on growing the business, and digital capabilities driving decision-making.
Beyond Beer expansion: The Beyond Beer portfolio is complementary and non-cannibalistic, with brands like Cutwater, NÜTRL, and BeatBox offering different consumer occasions and profiles. The company is expanding global brands like Flying Fish from Africa to Europe to South America.
India opportunity: India is a long-term growth opportunity with an industry growing high-single to almost double digits, low per capita consumption, and immense headroom for growth as barriers are unlocked and consumers become wealthier.
FIFA World Cup activation: The company expects FIFA to contribute historically 20 to 30 basis points of annual volume growth, concentrated in June and July, with execution hitting markets as the company approaches the games. The company is leveraging global scale to activate the World Cup globally, focusing on anticipation campaigns, bar support, and stadium concessionaires.
Financial Guidance and Outlook
2026 EBITDA growth guidance: The company reaffirmed confidence in its ability to deliver on its 2026 outlook of 4% to 8% EBITDA growth.
Margin expansion opportunity: While each year has unique dynamics, the company is confident that the combination of leadership advantages, disciplined revenue management, continued premiumization and efficient operating model creates opportunity for further margin expansion over time.
EPS growth drivers: Top line growth, effective cost management, and translational FX tailwinds drove underlying EPS of $0.97 per share, a 20.8% increase in dollars, with EBITDA growth accounting for an $0.11 per share increase, partially offset by below-the-line items.
Supply chain sustainability: The company remains focused on improving operational efficiency in agriculture, water, energy and emissions.
Digital and Innovation Strategy
AI-driven commercial execution: The company has wired the whole system with data driving decision-making and supporting front-line decision-making as a very important component of the growth algorithm.
Portfolio momentum: The company's choices to invest in the right brands and innovation to meet consumer demand and accelerate growth for both the category and the business are gaining momentum and paying off.