Shares of Anheuser-Busch InBev rose sharply on Tuesday after the world’s largest brewer reported first-quarter results that exceeded analyst expectations, supported by resilient beer demand and a return to volume growth.
American depositary receipts climbed 9.3%, building on gains earlier this year, after the company posted adjusted earnings per share of 97 cents, up from 81 cents a year earlier.
That figure topped analyst estimates of 89 cents per share.
Revenue came in at $15.27 billion, reflecting organic growth of 5.8% and also surpassing expectations of $14.8 billion.
Volume growth surprises amid weak consumption trends
A key highlight of the quarter was a return to volume growth, which has been elusive for the brewer in recent years.
Anheuser-Busch InBev reported a 0.8% organic increase in total volumes during the first three months of 2026, beating analyst expectations for a slight decline and marking the first increase in three years.
The company attributed the improvement to more favorable weather conditions and stable consumer sentiment.
“Cheers to beer — the strength of the category and the consistent execution of our consumer-centric strategy drove continued momentum across our footprint,” CEO Michel Doukeris said in a statement.
The volume growth comes despite broader challenges facing the alcohol industry.
In 2025, Anheuser-Busch InBev’s total sales volume declined 2.3%, with beer volumes falling 2.6%, as rising living costs and shifting consumer preferences weighed on demand.
Portfolio shift supports growth momentum
The brewer has increasingly relied on pricing and portfolio diversification to offset weakening consumption trends.
While price increases have driven much of its recent growth, the company is also expanding into faster-growing categories.
Its “balanced portfolio,” which includes low-carb, low-calorie, sugar-free, gluten-free, and no-alcohol beer offerings, recorded growth of 17%.
The company’s “beyond beer” segment, which includes ready-to-drink beverages such as Cutwater, posted a 37% increase in sales.
Particularly notable has been the performance of its no-alcohol beer segment.
The company reported that its alcohol-free portfolio delivered 34% revenue growth in 2025, with Corona Cero leading the expansion through strong double-digit volume gains.
In the first quarter of 2026, no-alcohol beer revenue rose a further 27%.
Anheuser-Busch InBev has been actively expanding this segment, rolling out alcohol-free versions of key brands such as Budweiser, Michelob Ultra, Corona, and Stella Artois, as it seeks to capture demand from health-conscious consumers.
Challenges persist despite strong quarter
Despite the upbeat results, structural challenges remain.
Global alcohol consumption continues to face headwinds from rising living costs, stricter immigration enforcement affecting social activity, and a shift toward healthier lifestyles.
The company’s flagship brands have also faced pressure.
Bud Light lost its long-standing dominance in the US market in 2023 following a marketing backlash, while competition from brands such as Modelo Especial and the rise of Michelob Ultra have reshaped the competitive landscape.
Although Michelob Ultra has gained traction due to its low-calorie positioning, investors remain cautious about whether its growth can fully offset declines in legacy brands.
Looking ahead, the company reiterated its expectation for full-year earnings before interest, taxes, depreciation, and amortization to grow between 4% and 8%.
Management also pointed to major upcoming global sporting events—including the Super Bowl, Winter Olympics, and FIFA World Cup—as potential catalysts for demand.
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