AB InBev Stock Rises: Q1 Growth Fueled by Corona & Cutwater

Shares of Anheuser-Busch InBev (BUD) surged 6% on Tuesday following the global brewing giant’s announcement of first-quarter underlying earnings per share of $0.97, which exceeded analyst projections by 21%.

This robust performance represents AB InBev’s initial volume expansion since early 2023, suggesting a possible turnaround in the challenged worldwide beer industry.

Key Takeaways

Q1 underlying EPS rose 21% to $0.97, beating consensus $0.89
Total volumes grew 0.8%, reversing analyst forecasts for decline
Megabrands Corona, Stella Artois drove revenue gains of 16%, 14%

Market Reaction & Context

The Brussels-listed shares of AB InBev advanced more than 6% during early trading sessions, surpassing the performance of the broader European beverage sector ¹. The Belgian brewery’s volume expansion of 0.8% stood in stark contrast to consensus projections of a 0.5% decrease, aligning it with competitors Heineken and Carlsberg who also recently posted their first volume upticks in more than a year ².

Organic revenue advanced 5.8% compared to analyst expectations of 3%, while normalized earnings before interest, tax, depreciation and amortization increased 5.3% versus the 2.6% consensus projection ³.

Brand Performance Drives Recovery

AB InBev’s international megabrands demonstrated robust momentum, with revenue expansion of 8.2% spearheaded by premium products ⁴. Corona achieved 16% revenue growth outside its domestic market, while Stella Artois increased 14% and Michelob Ultra soared 39% in global markets.

The company’s Beyond Beer division, featuring the rapidly expanding canned cocktail brand Cutwater, leaped 37% in revenue ⁵. Cutwater posted triple-digit growth and emerged as the third-largest contributor to AB InBev’s worldwide revenue growth during the quarter.

Management Commentary

“Cheers to beer – the strength of the category and the consistent execution of our consumer-centric strategy drove continued momentum across our footprint,” said CEO Michel Doukeris ⁶.

Chief Financial Officer Fernando Tennenbaum conveyed confidence regarding volume trends despite emerging concerns from Middle East tensions, which may affect input costs for materials like aluminum and fertilizer ⁷. The company sustained its annual guidance for organic EBITDA growth of 4% to 8%.

Regional Strength and Strategic Focus

AB InBev posted record first-quarter volumes in Mexico, Colombia, Brazil, South Africa and Peru, while securing or preserving market share in 75% of its markets worldwide ⁸. The company’s no-alcohol beer division expanded revenue 27%, solidifying its position as the global leader in the category by value.

Within the critical U.S. market, sales-to-retailers rose 0.3% with revenue per hectoliter climbing 4.4% fueled by brand mix enhancements and revenue management strategies ⁹. Nevertheless, Asia Pacific remained challenged with China volumes dropping 1.5% as the company boosted marketing investments to restore momentum.

Outlook and Strategic Priorities

AB InBev has committed to surpassing competitors Heineken and Carlsberg in 2026, supported by its emphasis on premiumization and innovation in balanced choices including low-alcohol and non-alcoholic products ¹⁰. The company executed $1.4 billion of its $6 billion share repurchase program announced in October 2025.

Moody’s elevated AB InBev’s credit rating to A2 from A3 during the quarter, demonstrating the robustness of its balance sheet and steady financial performance ¹¹.

Not investment advice. For informational purposes only.