The Boston Beer Company, Inc. (SAM) Q3 FY2026 earnings

Reported results

• Q3 2026 net revenue $520.1 million, down 3.2% year-over-year; depletions decreased 5% and shipments decreased 4.9%
• Q3 2026 GAAP diluted EPS $4.21 (includes $0.16 per share non-recurring litigation expense); Non-GAAP diluted EPS $4.37
• Q3 2026 gross margin 51.7%, up 90 basis points year-over-year from 50.8%
• Year-to-date 2026 net revenue $1.522 billion, down 3.6% from prior year; GAAP diluted loss per share ($4.87) including $14.51 per share litigation impact; Non-GAAP diluted EPS $9.64
• Year-to-date 2026 gross margin 50.5%, up 80 basis points from 49.7%; includes $4.8 million in shortfall fees and non-cash third-party production pre-payments
• Cash position of $308.1 million with no debt as of September 26, 2026; repurchased $79.5 million in shares year-to-date through October 16, 2026

Guidance

• Full-year 2026 depletions and shipments: down mid-single digits (updated from down low-single digits to mid-single digits)
• Full-year 2026 gross margin (including tariffs): 49% to 50% (updated from 48.5% to 50%)
• Full-year 2026 tariff costs: $18 to $22 million (updated from $20 to $30 million)
• Full-year 2026 advertising, promotion, and selling expense year-over-year change: approximately flat (updated from $0 to $20 million)
• Full-year 2026 GAAP tax rate (benefit)/provision: (11.0%) to (12.0%)
• Full-year 2026 non-GAAP tax rate provision: 29% to 30%
• Full-year 2026 GAAP EPS (income/(loss)): ($5.76) to ($4.26) (updated from ($6.23) to ($4.23))
• Full-year 2026 non-recurring litigation expenses impact per share: ($14.76) (updated from ($14.73))
• Full-year 2026 non-GAAP EPS: $9.00 to $10.50 (updated from $8.50 to $10.50)
• Full-year 2026 capital spending: $55 to $70 million (updated from $60 to $80 million)
• Full-year 2026 shortfall fees and non-cash third-party production pre-payments will negatively impact gross margins by 40 to 60 basis points

Notes

Year-to-date 2026 includes $194.5 million litigation expense related to supplier dispute ($175.5 million judgment, $15.5 million pre-judgment interest, $3.5 million post-judgment interest) plus $5.8 million in legal fees recorded in general and administrative expenses, with combined after-tax negative impact of $14.51 per share. Company is appealing and denies breach of supplier contract. Q3 2026 includes $1.8 million in post-judgment interest litigation expense and $0.4 million in legal fees. Effective tax rate methodology differs between GAAP (including litigation impact) and non-GAAP (excluding litigation impact). Supply chain improvements in 2025 have normalized distributor inventory levels to approximately four weeks on hand.

Price and volatility reaction

The stock moved +3.4% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -15.2 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-10-22 (8-K, Item 2.02). Read the original filing on sec.gov.