Overview
- Constellation reported results on Tuesday with adjusted EPS of $3.74 and revenue of $2.63 billion, both above Wall Street estimates.
- Management kept fiscal 2027 adjusted EPS guidance at $11.20 to $11.90 while lowering its annual operating margin outlook to 31%–32%.
- Shares fell about 4.5%–5% in after‑hours trading as investors focused on the narrower margin forecast and guidance that sits below some analyst expectations.
- The company acquired vodka‑based RTD brand SpikedAde for $75 million upfront plus up to $278 million in earnouts to expand into faster‑growing ready‑to‑drink categories.
- Constellation said beer volume and on‑premise demand tied to sporting events drove much of the quarter, while soft off‑premise spending and distributor inventory swings are keeping pricing flat and pressuring margins.