By Evie Liu

Anheuser--Busch InBev is under pressure as global alcohol consumption weakens, but a shift toward lower-calorie, lower-alcohol drinks could help the company stay relevant to consumers.

The owner of Budweiser, Corona Extra, and Stella Artois is set to report first-quarter results on Tuesday before the market opens. Analysts polled by FactSet expect the company to grow net revenue 8.6% from a year ago to $14.8 billion. Earnings are expected to come in at 89 cents per share, up from 81 cents the same quarter last year.

Much of Anheuser's growth in recent quarters has come from price increases, while alcohol consumption has weakened across global markets. In 2025, the company's total sales volume shrank 2.3% from the year before, with beer volume falling 2.6%.

Alcohol companies face many headwinds: Rising living costs have pushed consumers to drink less; stricter immigration enforcement has dampened social gatherings; and shifting health trends are driving increased interest in low- and no-alcohol alternatives.

Bud Light, Anheuser's flagship beer, lost its longtime U.S. dominance in 2023 after a marketing backlash weakened demand. Constellation Brands' Modelo Especial briefly took the top spot before the rise of Anheuser's Michelob Ultra, which has a strong appeal to health-conscious drinkers because of its low-calorie and low-carb positioning.

Still, investors are worried Michelob Ultra's growth might not be enough to offset declines in legacy brands. The American depositary receipts for Anheuser stock rode high in 2025, but turned volatile again in March.

The company is also accelerating its push into low- and no-alcohol beverages, expanding brands such as Budweiser Zero, Michelob Ultra Zero, and Corona Cero, while also rolling out alcohol-free versions of Stella Artois and other core labels.

The strategy is gaining traction: its no-alcohol beer portfolio delivered 34% revenue growth in 2025, led by Corona Cero, which grew volume by strong double-digits, the company said.

For 2026, management expects earnings before interest, taxes, depreciation, and amortization to grow 4% to 8%, noting a number of sporting events -- including the Super Bowl, Winter Olympics, and FIFA World Cup -- could help drive sales.

"We remain confident in the long-term potential of the beer category, which has structural tailwinds for growth and plays an important role in bringing people together and creating moments of celebration," the company said at the last earnings report.

Write to Evie Liu at evie.liu@barrons.com

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May 04, 2026 16:01 ET (20:01 GMT)

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