2 Reasons AB InBev Stock Is Dropping After Bud Light Brewer's Earnings Beat -- Barrons.com

By George Glover

Investors have spent much of 2026 toasting AB InBev, but a second-quarter earnings beat wasn't enough to stop the Bud Light brewer's shares from sliding on Thursday.

AB InBev American depositary receipts, which trade under the ticker BUD, fell 2.3% to $82.88 ahead of the opening bell. Futures tracking the S&P 500 were up 0.4%.

The selloff came after the company reported underlying earnings of $1.21 a share, as revenue rose 5.6% from a year ago to $16.66 billion. Analysts were looking for earnings of $1.11 a share on revenue of $16.40 billion, according to a FactSet poll.

Beer sales volumes rose 1.1% from a year ago. The FIFA World Cup 2026 helped drive up sales of Michelob Ultra lager and brands also got a boost from other sporting events including the French Open and Wimbledon tennis tournaments, according to AB InBev.

"Cheers to beer -- our performance this quarter reflects the strength of the beer category and the consistent execution of our strategy," CEO Michel Doukeris said.

The company reported "flattish" operating margins as it poured more money into sales and marketing. That may explain why shares were dipping following the earnings beat.

Investors may also have just been taking the opportunity to lock in some profit following a stellar run for AB InBev stock this year as Doukeris' turnaround plan gathers pace.

AB InBev's ADRs were up 33% for the year through Wednesday's close thanks to beer volume growth, which has eased Wall Street's worries about younger consumers drinking less.

There will be plenty of opportunities for the world's largest brewer to extend that rally -- but for now, the market appears to have decided that there is too much foam at the top of the stock.

Write to George Glover at george.glover@dowjones.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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July 30, 2026 05:56 ET (09:56 GMT)