Boston Beer (SAM) Q3 2026 Earnings
Non-recurring supplier dispute litigation expenses of $0.16 per diluted share in Q3 2026 (consisting of $0.4 million legal fees and $1.8 million post-judgment interest expense, combined $2.2 million pre-tax)
How Did SAM Stock React to Q3 2026 Earnings?
Did SAM Beat Earnings? Q3 2026 Results
Yes. Boston Beer reported Q3 2026 earnings of $4.37 a share on Oct 22, 2026, beating the $4.21 consensus estimate by 3.8%. Revenue was $520.1M against a $522.9M estimate.
Boston Beer Company posted a mixed third quarter for 2026, beating profit expectations while falling short on sales, as volume declines across its core brands continued to weigh on the top line. The Samuel Adams brewer reported adjusted non-GAAP diluted EPS of $4.37, ahead of the $4.21 consensus by 3.80%, while net revenue slipped 3.2% year over year to $520.10 million, missing the $522.93 analyst estimate by 0.54%. The profit beat was anchored by a 90-basis-point expansion in gross margin to 51.7%, driven by favorable product mix, price increases, and procurement savings, even as depletions fell 5% and shipments dropped 4.9% with Twisted Tea, Truly, and Samuel Adams all declining. GAAP EPS of $4.21 included $0.16 per share in non-recurring supplier dispute litigation costs. Looking ahead, management raised the low end of full-year guidance, now targeting non-GAAP EPS of $9.00 to $10.50 and gross margin of 49% to 50%, with the most meaningful margin improvement expected in the fourth quarter as shortfall fees ease.
- Gross margin expansion of 90 basis points driven by favorable product mix, price increases, procurement savings, and improved brewery efficiencies
- Volume declines in Twisted Tea, Truly, and Samuel Adams partially offset by growth in Sun Cruiser and Angry Orchard
- Depletions declined 5% and shipments declined 4.9% year over year
- Higher freight costs of $9.5 million offset by $9.0 million reduction in advertising spend, keeping advertising/promotional/selling expenses flat
- Multi-year supply chain transformation contributing to gross margin improvement
“The demand environment remains challenging, and we are prioritizing actions within our control to strengthen our business and improve market share trends. We are encouraged by the strong performance of Sun Cruiser and remain focused on marketplace execution, while our continued emphasis on productivity and strong cash generation provide a solid foundation to invest behind our brands and drive long-term value.”
Boston Beer CEO, on the earnings call
What Is Boston Beer's Outlook?
The company raised the low end of its full-year 2026 guidance. Current guidance includes: depletions and shipments down mid-single digits (narrowed from down low-single to mid-single digits); price increases of 1%–2%; gross margin of 49%–50% (raised from 48.5%–50%); tariff costs of $18–$22 million (reduced from $20–$30 million, including a $3 million Q3 refund); non-GAAP EPS of $9.00–$10.50 (raised from $8.50–$10.50); GAAP EPS loss of $5.76 to $4.26 (narrowed from loss of $6.23 to $4.23); capital spending of $55–$70 million (reduced from $60–$80 million). The company expects modest shipment growth in Q4 and the most meaningful year-over-year gross margin improvement in Q4 as shortfall fees are expected to be lower. Full-year 2027 guidance will be provided during the Q4 earnings call in February 2027.
SAM YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $520.1M | $537.5M | −3.2% |
| Gross Profit | $269.1M | $273.1M | −1.5% |
| Operating Income | $56.3M | $63.5M | −11.2% |
| Net Income | $43.2M | $46.2M | −6.5% |
Figures from SEC filings and company reports. Not investment advice.