By Evie Liu

Energy drinks had become one of the few bright spots in a struggling food and beverage industry. But the stocks have been struggling in the past few months as investors become concerned whether the growth was sustainable.

The latest earnings from Monster Beverage and Celsius suggested the category may still have more room to grow.

Shares of Monster Beverage surged 15% on Friday after it posted a stronger quarter than Wall Street expected, just a day after rival Celsius delivered a better-than-expected earnings report.

Together, the results reassured investors that demand for energy drinks remains resilient even as inflation and economic uncertainty continue to pressure broader consumer spending.

On Thursday after the market closed, Monster reported first-quarter revenue of $2.35 billion, up 27% from a year earlier and ahead of analyst expectations near $2.16 billion. Adjusted earnings climbed to 58 cents a share from 47 cents a year ago, also topping expectations of 53 cents.

Celsius posted even faster growth. First-quarter revenue surged 138% from a year ago to $782.6 million, above Wall Street expectations of $763 million, while adjusted earnings rose to 41 cents a share from 18 cents a year earlier, well ahead of consensus estimates of 29 cents.

The strong results helped reverse a difficult stretch for both stocks amid concerns that growth in the energy-drink category was beginning to slow as competition intensified. Monster shares had fallen nearly 13% from their February high, while Celsius had lost about 40%.

The latest quarterly results suggested that consumers are still willing to spend on energy drinks even as many food and beverage companies struggle with slowing volumes. Monster grew North America sales by 15.6%, while Celsius expanded its flagship brand revenue by 6%.

Much of Celsius's revenue surge came from its recent acquisitions. Alani Nu contributed roughly $368 million to the firm's quarterly sales, while Rockstar added another $67 million.

International growth, particularly, has been a bright spot. Investors are increasingly worried that the U.S. energy-drink market is becoming crowded and mature, especially as retailers like Costco pushed more private-label offerings.

Both drink companies have benefited from distribution partnerships that helped them expand shelf space rapidly across convenience stores and supermarkets. But Wall Street has been concerned whether they can keep growing once the easy distribution gains fade.

Monster's international sales jumped 45% from a year earlier and now account for roughly 45% of total revenue -- the highest mix in company history -- suggesting the company still has room to grow overseas.

Celsius's international business is still small, making up 5% of the company's total revenue. But the segment posted 55% growth in the first quarter thanks to expansion into Europe and other overseas markets.

Challenges remain. Higher aluminum-can and freight costs continued to weigh on profitability, while Celsius' margins were pressured by its acquisitions.

Still, Celsius said cost pressure improved from the previous quarter as the acquired brands became integrated into the company's purchasing structure. Monster raised prices last fall to cover the rising costs and management said it is "pleased" with the resilient demand so far.

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

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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May 08, 2026 15:05 ET (19:05 GMT)

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