By Evie Liu

Anheuser--Busch, owner of popular beer brands like Budweiser, Corona Extra, and Stella Artois, is expected to keep boosting its revenue when it reports earnings before the market opens on Thursday.

Beer consumption has been challenged, but Anheuser shares continued to climb as investors remain optimistic in the firm's premium brands and expansion into non-alcohol offerings.

For the quarter ended in December, analysts polled by FactSet expect the alcohol giant to grow net revenue by 5% to reach $15.59 billion. Earnings are expected to come in at 88 cents per share, flat from a year ago.

Management noted in the past that growth was mainly driven by the company's megabrands like Corona. In the U.S., Michelob Ultra has overtaken Bud Light to be the top-ranking brand by volume.

Bud Light's longtime dominance was disrupted in 2023 after a marketing backlash weakened demand for the brand. Constellation Brands' Modelo Especial briefly took the top spot before Michelob Ultra's recent ascent.

But much of the Anheuser's revenue growth came from higher prices rather than more purchasing. In the third quarter, total volume declined 3.7% from a year ago. Chinas was a clear laggard with 11.4% volume decline.

Alcohol companies have struggled with sluggish sales in recent years. Consumers facing higher living costs are drinking less or trading down to cheaper options. Weather volatility has disrupted peak-season demand, while enhanced immigration enforcements have led to less social gatherings. Meanwhile, health trends have led to rising interest in low- or no-alcohol beverages, cutting into traditional beer consumption.

Still, even with beer sales under pressure, Anheuser-Busch stock has jumped 52% over the past year -- driven by strong performance from its premium brands and a bigger push into nonalcoholic drinks.

In the third quarter, management highlighted faster growth in its no-alcohol beer and other non-beer offerings such as hard seltzers, ready-to-drink cocktails, hard teas, and ciders.

Anheuser--Busch is also keeping investors content with attractive capital returns and a strong balance sheet. Last quarter management announced a $6 billion buyback plan and an interim dividend -- while continuing to pay down the debt load built up from earlier deals.

Beer stocks have made a comeback recently as investor capital started rotating into defensive stocks during periods of market uncertainty. In the past three months, Constellation Brands and Boston Beer have both gained 25%, while Molson Coors Beverage has risen 16%.

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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February 11, 2026 16:37 ET (21:37 GMT)

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