Celsius Is Winning The Energy Drink Battle With Pepsi In Its Corner

Celsius Holdings, Inc. (NASDAQ:CELH) shares rose in premarket trading Thursday after the company reported first-quarter results that topped Wall Street expectations, driven by strong demand across its expanding energy drink portfolio and momentum from its integration into PepsiCo, Inc.’s (NASDAQ:PEP) distribution network. Quarter In Detail Celsius reported first-quarter adjusted earnings of 41 cents per share, beating the analyst consensus estimate of 30 cents. Quarterly revenue surged 138% year over year to record $782.6 million, exceeding analyst estimates of $766.8 million. North America revenue climbed 144% year over year to $747.3 million, while international revenue increased 55%. Gross margin contracted by 400 basis points during the quarter. The company said the decline in gross margin reflected the addition of Alani Nu and Rockstar Energy, both of which carried lower margins at the time of acquisition. Management said Alani Nu delivered record first-quarter 2026 sales of about $368.1 million, supported by strong consumer demand and increased orders tied to its transition into PepsiCo’s distribution network. Rockstar Energy generated approximately $66.6 million in first-quarter revenue. For the three months ended March 31, gross profit increased by $205.7 million to $378.1 million. CEO John Fieldly highlighted the company’s growing market position, saying, “As PepsiCo’s energy category captain in the U.S. and with an aligned commercial strategy, we reached an approximate 20.9% dollar share of the U.S. energy drink category in Q1 2026.” Fieldly added that the company is entering 2026 with “positive momentum, scale and confidence” as brand integration efforts continue. Retail Sales And Market Share Quarterly retail sales for the Celsius portfolio — including CELSIUS, Alani Nu and Rockstar Energy — increased 29.8% year over year in U.S. tracked channels during the 13 weeks ended March 29. The portfolio captured a 20.9% share of the U.S. ready-to-drink energy category. The company said CELSIUS brand sales rose 6%, giving the brand a 9.9% category share. Alani Nu sales doubled following its April 2025 acquisition, reaching a 9% category share. Rockstar Energy sales declined 13% year over year and held a 2% category share. Celsius ended the quarter with $549.2 million in cash and cash equivalents. Price Action CELH Stock Price Activity: Celsius Holdings shares were up 5.79% at $34.70 during premarket trading on Thursday, according to Benzinga Pro data. Photo by MDV Edwards via Shutterstock