Celsius Holdings Inc. shares plunged 16.4% in pre-open trading after the energy drink maker reported second-quarter 2026 results that missed consensus on all principal metrics.
Adjusted earnings per share were $0.36, below the $0.43 consensus. Total revenue came in at $817.9 million, short of the roughly $886 million analysts had expected, though the top line still represented an 11% increase from the year-ago quarter.
What most concerned investors was the performance of the CELSIUS brand. Revenue for the flagship label fell 11.7% year-over-year, pressured by higher trade and promotional spending, inventory rebalancing associated with its distribution relationship with PepsiCo, softness in the club retail channel, and an ongoing SKU rationalization program. These brand-level headwinds contributed to a sharp deterioration in profitability.
Operating margin declined to 9.2% versus 19.3% in the same quarter a year earlier. Adjusted EBITDA was $184.2 million and also missed street expectations. Chief Executive Officer John Fieldly acknowledged the difficulties at the brand level and said the company remains focused on "return[ing] brand CELSIUS to sustainable growth" through improvements in assortment productivity.
The earnings disappointment came after a period in which several brokerages had already lowered their price targets on CELH. Deutsche Bank, JPMorgan, Stifel, and Citi trimmed forecasts in recent weeks, reflecting mounting concern about scanner trends, a cooling in category growth, and margin pressure from newer, lower-margin brands Celsius has acquired.
Market conditions provided little shelter. The Nasdaq declined about 0.5% on the day, while the S&P 500 and Dow Jones Industrial Average posted modest gains of 0.1% and 0.3%, respectively. Those broader movements did not offset the impact of Celsius' weak results and deteriorating core-brand momentum.
Combined, the pre-market earnings shortfall, the decline in CELSIUS brand sales, the steep compression in margins, and a mildly pressured Nasdaq sent CELH to its weakest pre-open levels in recent sessions. The stock moved closer to its 52-week low of $26.54, extending a difficult run for investors after the share price fell by more than 40% over the past year.
The episode highlights how distribution dynamics, promotional intensity, and portfolio composition can influence both top-line trajectories and margin profiles for consumer beverage companies. Celsius' management has signaled a plan to address assortment efficiency, but the near-term data released with the quarter indicate continued headwinds for the core brand and for profitability.