Anheuser-Busch InBev SA/NV (BUD) Income Statement

The 10-quarter trend reveals a clear deceleration from the 8.5% growth in 2022Q2 to a negative -0.5% in 2024Q4, with the latest 2026Q2 showing a 6.4% spike. This volatility suggests that growth is increasingly dependent on price/mix rather than volume, as the company faces mature markets and competitive pressures. The lack of consistent positive growth indicates that the company's premiumization strategy may be hitting limits, and investors should monitor whether the latest uptick is sustainable or a one-off.

Gross margin has shown remarkable stability, hovering between 53.9% and 57.4%, indicating strong pricing power and cost management. However, the net margin has been more volatile, dropping to 9.8% in 2025Q4 and 11.5% in the latest quarter, despite a gross margin of 57.1%. The widening gap between operating and net margins suggests that interest expense or tax rates are increasingly eating into profitability, likely due to the company's leverage. This divergence warrants close attention as it may signal that the company's debt load is becoming a more significant drag on earnings.

The operating margin jumped to 50.0% in 2025Q2 due to an unusually low SG&A figure of $17.6B, which is likely a data error or one-time adjustment. In other quarters, SG&A has been consistently around $8.6B-$9.3B, and operating margins have ranged from 24.1% to 27.2%. This suggests that the company is not achieving significant operating leverage; rather, it is maintaining stable margins through cost discipline. The lack of SG&A growth relative to revenue implies that overheads are well-controlled, but the absence of scale benefits indicates that revenue growth is not translating into disproportionate profit gains.

COGS has been remarkably stable, ranging from $12.1B to $13.9B, which has helped maintain gross margins despite revenue stagnation. This suggests that the company has been successful in controlling input costs, possibly through hedging and procurement scale. However, SG&A has shown more variability, with a notable spike in 2025Q2 that appears anomalous. Excluding that, SG&A has been well-controlled, indicating disciplined overhead management. The primary cost pressure appears to be on the net income line, likely from interest and taxes, rather than operational costs.

The 2025Q2 data shows an operating income of $15.0B on revenue of $30.0B, implying an operating margin of 50%, which is nearly double the typical 25%. This is driven by an SG&A figure of $17.6B, which is roughly double the usual $9B, but the operating income is also unusually high. This suggests a possible misclassification or one-time item. Excluding this outlier, the company's operating margin has been remarkably stable around 25-27%, indicating no major inflection point. The real inflection may be the recent revenue decline, which could signal a structural shift in demand.