Anheuser-Busch InBev (NYSE: BUD) stock shot up almost 9% the day it reported strong Q1 2026 earnings, with the rally continuing into the next trading day.
One of the key takeaways from the report was that the company saw an increase in both revenue and volume. The latter has been a challenge in the past several quarters.
The report also showed that Anheuser-Busch, the parent company of the Budweiser and Bud Light brands, is retaining its title as the “king of beers,” although the crown has shifted to its Corona brand.
The company reported adjusted earnings per share (EPS) of 97 cents, topping estimates of 90 cents. Anheuser-Busch also delivered revenue of $15.27 billion, beating forecasts for $14.69 billion. The revenue number matched the number from Q4 2025.
That’s why it bears repeating that the more relevant number for investors is the volume. The company is no longer having to rely on pricing power to make its numbers. That suggests that the environment for consumer discretionary stocks may be starting to normalize.
The Preference for Premium Remains in Place
Part of Anheuser-Busch's strategy in recent years has been to segment its broad portfolio. This gives investors an idea of where the company’s growth comes from. It shouldn’t be too much of a surprise that one of the strongest growth areas comes from its premium brands.
In the quarter just ended, the company reported net revenue growth of 11% in its premium beer category. And the company’s Corona and Stella Artois brands are leading the way.
That was supported by the company’s broader assessment that alcohol participation is stable, with approximately 77% of legal drinking age adults having consumed alcohol in the six months prior to the report. That percentage was essentially flat year over year, indicating that the company’s strength is coming from its beer category.
This Is Not Your Father’s BUD
It doesn’t take a very close look under the hood of the earnings report to see two striking data points. On the company’s list of “Replicable growth drivers,” the two largest categories in revenue growth were no-alcohol beer and Beyond Beer at 27% and 37% , respectively.
The first confirms that Millennial and Gen Z consumers are seeking alcohol-free experiences. The second category, created in 2018, houses the company’s portfolio of hard seltzers, wine and spirits, traditional malt-based beverages, and low- or no-alcohol drinks. It’s a nod to the idea that tastes are changing for those who continue to consume alcoholic beverages.
However, this is a move that investors should welcome. Like many other beer companies, Anheuser-Busch saw the writing on the wall a long time ago. The company has been diversifying its portfolio to keep up with trends that are shaping the market.
Future Catalysts—The World Cup and More
Is now a good time to buy BUD? The stock is trading near its 52-week high and is rapidly approaching the consensus price target of $90.50 from 16 analysts that are tracked by MarketBeat. Furthermore, BUD is trading about 13% above its 50-day simple moving average (SMA). The immediate setup favors a pullback.
But would that be a dip worth buying? One reason to believe BUD may have catalysts ahead comes from the calendar. The World Cup begins in June and runs into July. This will be an international event attracting fans from all over the world, and particularly benefitting the company's Mid-America's segment.
There will also be many “America 250” celebrations throughout the country. Budweiser and Bud Light are likely to be key symbols of America at those events.
BUD Is a Mix of Hope and Caution
Since the earnings report, several analysts have reiterated a rating of “Buy” or its equivalent. However, those ratings aren’t coming with an increase in their price targets. That’s something to be cautious about with BUD stock now sitting at a 5-year high.
And that comes after the stock had a pandemic-fueled rally that broke it out of a sharp sell-off that began in 2019. It hasn’t been a party for shareholders. Competition and a shift away from alcohol have been a drag on BUD.
But the company’s data shows a significant addressable market for alcoholic beverages. And one of the company’s primary competitors, Molson Coors (NYSE: TAP) delivered earnings this week with a similar volume story.
That suggests the market is there, and the decline in volume may have been linked to inflation and not interest. It’s a thesis that will require more than one quarter to play out. But with forecasted earnings growth of 13% on a stock trading around 19x earnings, it could be time to revisit BUD on any pullback.
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The article "Anheuser-Busch Stock Jumps as Volume Growth Signals Turnaround" first appeared on MarketBeat.
