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yesterday

Constellation Brands Tops Q2 Estimates, Reaffirms Lowered FY26 Outlook

Tariff-driven cost inflation is keeping a lid on its full-year outlook.

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Bottles of the beer, Corona, a brand of Constellation Brands Inc., sit on a supermarket shelf in Los Angeles, California April 1, 2015. REUTERS/Lucy Nicholson/File Photo

Overview

  • Adjusted earnings came in at $3.63 per share on $2.48 billion in revenue, beating Wall Street expectations on both metrics.
  • Net sales fell about 15% year over year and operating margin contracted roughly 200 basis points, with management citing aluminum tariffs and about $90 million in annualized tariff costs.
  • Executives said the beer business outperformed the broader market even as demand softened among Hispanic consumers tied to immigration-enforcement concerns.
  • The company maintained guidance for fiscal 2026, including comparable adjusted EPS of $11.30 to $11.60 and an organic net sales decline of 4% to 6%.
  • Constellation generated $727 million in operating cash flow and repurchased $240 million of stock in the quarter, and shares rose roughly 3% to 4% in after-hours trading.