Why Molson Coors Beverage Stock Dropped Today

MrDecoder · 2026-02-20T03:36:40+00:00

Molson Coors' stock fell 5% after mixed Q4 earnings, reporting earnings per share of $1.21 but sales below expectations. The company experienced declining sales year-over-year and significant annual losses due to a goodwill impairment charge. Future challenges include rising costs and flat sales projections for 2026.

MrDecoder

2026-02-20 03:36:40

Abstract generation in progress

**Molson Coors Beverage **(TAP 5.12%) stock dropped 5% through 1:45 p.m. ET Thursday after reporting mixed earnings last night.

On the one hand, analysts forecast Molson would earn only $1.15 per share, but Molson reported $1.21 per share in Q4 instead. On the other hand, analysts thought Molson’s quarterly _sales _would be more than $2.7 billion – but they ended up under $2.7 billion.

Image source: Getty Images.

Molson Coors Q4 earnings

Sales declined 2.7% year over year at Molson, and GAAP earnings dropped 6.9% at the beer company. For the full year, Molson reported a 4.2% sales decline to $11.1 billion, with a disappointing loss of $10.75 per share.

Molson blamed a “non-cash partial goodwill impairment charge” for turning what should have been an annual profit into a big GAAP loss.

CEO Rahul Goyal lamented that 2025 was a “tough year” for Molson, but insisted his company has the “brands, infrastructure and people, and a strong balance sheet to weather this macro volatility.”

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NYSE: TAP

Molson Coors Beverage

Today’s Change

(-5.12%) $-2.60

Current Price

$48.22

Key Data Points

Market Cap

$9.5B

Day’s Range

$46.30 - $48.80

52wk Range

$42.94 - $64.66

Volume

4.6M

Avg Vol

3.3M

Gross Margin

36.28%

Dividend Yield

3.70%

Is Molson Coors stock a sell?

This “weathering” may take some time. Turning to guidance, company CFO Tracey Joubert warned of “rising commodity input costs pressuring our bottom-line” in 2026.

2026 sales are expected to be basically flat against 2025 – about $11 billion. Combined with rising costs, though, the company forecasts an 11% to 15% year over year decline in “underlying” earnings (i.e., non-GAAP, not counting the 2025 write-downs).

The good news is Molson still expects to generate about $1.1 billion in positive free cash flow this year. On Molson’s $9.6 billion market capitalization, that works out to a price-to-free cash flow ratio of only 8.7. Molson shouldn’t have to grow much at all to justify that valuation.

But it does have to grow at least some.

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