What Anheuser-Busch InBev SA/NV (BUD) Said on Its Q3 Earnings Call

Key Points

• AB InBev reported solid Q3 growth, with revenue up 4.9%, underlying EPS rising 22.4% on a reported-dollar basis, and total volumes increasing 0.4% for a third consecutive quarter.
• Premium and non-alcohol brands drove performance: mega-brand revenue grew 7.7%, Corona revenue rose 20% outside Mexico, and non-alcohol beer revenue increased 35%, led by Corona Zero and Michelob ULTRA Zero.
• Regional results were mixed. Strong growth in the Americas and South Africa offset weakness in China, where revenue and volumes fell 16.8%; management reaffirmed its 2026 outlook and has repurchased $2.6 billion of stock.

Anheuser-Busch InBev SA/NV NYSE: BUD reported third-quarter revenue growth of 4.9% and a 22% increase in underlying earnings per share, supported by pricing, premiumization and continued investment in brands and digital capabilities.

The brewer said total volumes rose 0.4% during the quarter, marking its third consecutive quarter of volume growth. Beer volumes were roughly flat, as growth in two-thirds of its markets was offset by a difficult operating environment in China. Soft-drink volumes contributed to overall volume growth. Revenue per hectoliter increased 4.2%, while EBITDA rose 3.9% and margins remained broadly flat.

Underlying EPS reached $1.21, up 22.4% on a reported dollar basis and 13.9% on a constant-currency basis, according to CFO Fernando Tennenbaum. The company also announced an interim dividend of €0.40 per share, compared with €0.15 per share a year earlier.

Brand investment and category expansion

Management said the company increased sales and marketing investment during the quarter to support its major brand platforms and future growth plans. Over the past 12 months, Anheuser-Busch InBev invested $8.1 billion in sales and marketing, Tennenbaum said.

Its mega brands generated 7.7% net revenue growth in the quarter. Corona revenue increased 20% outside Mexico, while Corona volumes rose by double digits in 37 markets. Management also highlighted partnerships with Live Nation and Netflix as part of its effort to put its brands at the center of consumer entertainment and cultural events.

Non-alcohol beer was another source of growth, with revenue up 35%, led by Corona Zero and Michelob ULTRA Zero. Michel said the company estimates about 60% of non-alcohol beer volume comes from new occasions and consumers, making the category an opportunity for incremental growth.

Michelob ULTRA continued its international expansion, particularly across the Americas. Michel said 60% of the brand’s global growth in the third quarter came from outside the United States. The company views the low-calorie, low-carb and lower-sugar segment as a global consumer trend and said the brand is positioned as core-plus or premium outside the U.S.

Regional results were mixed

In North America, the company said it gained share in beer and Beyond Beer and has gained share of total alcohol for 10 consecutive quarters. Michelob ULTRA and Busch Light were the industry’s top two volume share gainers, while Beyond Beer revenue grew by the low teens, led by Cutwater and NÜTRL.

Mexico posted mid-single-digit volume growth and double-digit bottom-line growth, helped by market-share gains and margin expansion. Colombia delivered double-digit top- and bottom-line growth on record third-quarter volumes, while Brazil recorded mid-single-digit top- and bottom-line growth. In Brazil, the premium and super-premium beer portfolio delivered high-teens volume growth.

European volumes were flat, though the company estimated it gained or maintained share in most key markets. South Africa recorded its highest-ever third-quarter volumes, with premium beer volumes growing by the mid-thirties percentage range, according to management.

China remained the company’s most significant challenge. Revenue and volumes there declined 16.8% as the company underperformed a weak industry. Michel said the beer industry in the company’s footprint declined by more than 10%, affected by unusually poor summer weather and ongoing weakness in on-premise consumption. He said the company had made progress in its in-home market-share trend, O2O channel growth and investments behind core-plus and super-premium brands.

Management said it aims to end the year with normal inventories in China after reducing channel inventory during the downturn.

Digital platforms and capital allocation

The company’s BEES business-to-business platform processed $15.9 billion in gross merchandise value during the third quarter, up 12% from a year earlier. GMV from third-party products rose 45% to $1.4 billion. Its direct-to-consumer digital platforms served 13 million consumers and generated $158 million in revenue, while the company’s D2C marketplace reached annualized GMV of $200 million.

Tennenbaum said the company’s balance sheet has provided greater capital-allocation flexibility. He noted that 98% of debt is fixed-rate, with an average coupon of about 4%, and said the company has no relevant refinancing needs. The brewer has repurchased $2.6 billion of stock under its previously announced 24-month, $6 billion share-repurchase program.

Looking ahead, management reaffirmed confidence in delivering its 2026 outlook but did not provide 2027 guidance. Tennenbaum said current commodity-market conditions point to a more normal cost environment next year, subject to completion of the company’s hedging program.

About Anheuser-Busch InBev SA/NV (NYSE:BUD)

Anheuser-Busch InBev SA/NV is a global beverage company headquartered in Leuven, Belgium, and one of the world's largest brewers. The company produces, markets and distributes beer and other alcoholic and nonalcoholic beverages through a portfolio of international, regional and local brands.

Its brand portfolio includes Budweiser, Bud Light, Corona, Stella Artois, Michelob ULTRA, Beck's, Hoegaarden and Leffe. AB InBev also offers a range of zero-alcohol and other beverage products, while its operations include brewing, packaging, sales and distribution.

The company was formed through the combination of Belgium's Interbrew and Brazil's AmBev in 2004.

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