Constellation Brands (STZ) Q2 2027 Earnings
GAAP EPS of $3.32 includes $49.8 million in asset impairment charges (Nelson's Green Brier), $14.2 million strategic business reconfiguration costs, $4.9 million 2025 Restructuring Initiative costs, $4.6 million transition services agreements costs, and $1.8 million loss on sale of business, partially offset by favorable commodity derivative adjustments and a $20.1 million net tax benefit from comparable adjustments
How Did STZ Stock React to Q2 2027 Earnings?
Did STZ Beat Earnings? Q2 2027 Results
Yes. Constellation Brands reported Q2 2027 earnings of $3.74 a share on Oct 6, 2026, beating the $3.55 consensus estimate by 5.3%. Revenue was $2.6B against a $2.5B estimate.
Constellation Brands posted a convincing second-quarter beat on Tuesday, with adjusted EPS of $3.74 clearing the $3.55 consensus by 5.35% and marking the company's fourth consecutive quarter of beating EPS estimates. Consolidated net sales of $2.63 billion topped the $2.54 billion estimate by 3.67% and rose 6.1% year over year, driven primarily by the Beer segment, which generated $2.47 billion in net sales on 5.5% shipment volume growth. The Beer business also claimed the top spot as the number-one dollar and volume share gainer in U.S. tracked channels, outperforming the total beer category by four percentage points, even as Modelo Especial and Corona Extra faced volume pressure and Pacifico and Victoria picked up the slack with strong depletion growth. The Wine and Spirits segment swung to a $6.10 million operating profit from a $19.80 million loss a year ago, adding further momentum. The stock, which had recently traded near 52-week lows, now faces a more constructive setup as management reaffirmed comparable EPS guidance of $11.20 to $11.90 for fiscal 2027 and targeted free cash flow of $1.60 billion to $1.70 billion.
- Beer shipment volume growth of 5.5% drove Beer net sales increase of 5%
- #1 dollar and volume share gainer in beverage alcohol in Q2
- Beer Business outperformed total beer category by 4 percentage points in dollar and volume sales
- Wine and Spirits depletions grew 10.2% driven by Kim Crawford (~11%) and Mi CAMPO (~51%)
- Wine and Spirits operating margin improved to 3.8% from (14.6)% due to U.S. tariff recoveries and cost optimization
- Increased marketing investment in Beer contributed to operating margin contraction of 160 bps
- Pacifico became a top-10 brand by dollar sales in U.S. beer category
- Beer depletions declined 0.6% as Modelo Especial declined ~2% and Corona Extra declined ~5%, partially offset by Pacifico (~19%), Victoria (~15%), and Modelo Chelada (~5%) growth
“During the second quarter, our portfolio of iconic brands continued to resonate with consumers. We have sharpened our execution and increased investment across the business, and are beginning to see early returns through accelerating dollar and volume share gains in both our Beer and Wine & Spirits businesses relative to the first quarter. As a result, we were the #1 dollar share gainer in beverage alcohol during the second quarter. Looking ahead, we remain focused on building on this momentum by expanding our reach across more consumers and occasions, while investing behind the brands and capabilities that will support our next phase of growth.”
Constellation Brands CEO, on the earnings call
What Is Constellation Brands's Outlook?
For fiscal 2027 (year ending February 28, 2027), the company updated reported EPS guidance to $11.85-$12.55 and reaffirmed comparable EPS guidance of $11.20-$11.90. Enterprise organic net sales growth (decline) is expected at (1)% to 1%, with Beer net sales growth (decline) of (1)% to 1% and Wine and Spirits organic net sales growth (decline) of (1)% to 1%. Enterprise operating margin is guided at 31%-32% reported and 32%-33% comparable. Beer operating margin is expected at 37%-38%, and Wine and Spirits operating margin at 5%-6%. The comparable tax rate is expected at approximately 20%. Operating cash flow is targeted at $2.4-$2.5 billion, capital expenditures at approximately $800 million, and free cash flow at $1.6-$1.7 billion. The SpikedAde acquisition does not impact fiscal 2027 outlook.
STZ YoY Financials
| Metric | Q2 2027 | Q2 2026 | Year over year |
|---|---|---|---|
| Revenue | $2.6B | $2.5B | +6.1% |
| Gross Profit | $1.4B | $1.3B | +6.3% |
| Operating Income | $805.0M | $874.0M | −7.9% |
| Net Income | $565.8M | $466.0M | +21.4% |
STZ Revenue by Segment
When Does Constellation Brands Report Next?
Figures from SEC filings and company reports. Not investment advice.