Shares of beer giant Anheuser-Busch InBev (BUD +2.14%) rallied 8.7% on Tuesday.
Talk about a nice Cinco de Mayo for AB-InBev, which hadn't gotten back to today's stock level since early 2020.
Like its peers, AB-InBev has struggled with societal headwinds in which people are generally consuming less alcohol. However, AB-InBev appears to have the brands and marketing that resonated with consumers last quarter. The company's better-than-expected revenue and earnings growth last night suggested it is swallowing up market share from competitors.
NYSE: BUD
Key Data Points
Cheers to a fantastic start to 2026
In the first quarter, AB-InBev grew revenue 12% to $15.3 billion, with adjusted (non-GAAP) earnings per share rising 20.8% to $0.97. Those figures handily beat analyst estimates, with revenue beating by $580 million and adjusted EPS outpacing estimates by $0.06.
Results were helped along by currency tailwinds and the company's pricing actions. However, despite select price increases, overall volumes were still up 0.8%, with beer volumes up 1.2%.
That might not seem like much, but it's actually a fantastic result, given that overall industry-level beer consumption fell 2.6% in 2025. Moreover, management reiterated its full-year adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) guidance of 4% to 8%, citing optimism about sporting events such as the World Cup this year.
Image source: Getty Images.
AB-InBev still looks cheap, but headwinds remain
AB InBev no doubt had a great quarter with solid execution, and the stock trades at a reasonable 18.7 times this year's earnings estimates.
Still, investors should be wary that AB InBev still operates in a growth-challenged industry. While the company saw strong growth in its healthier beers and even new zero-alcohol offerings, management will have to work harder to sustain that growth if overall beer consumption continues to stagnate or decline. After all, there is only so much market share to gain or price increases to take.
