Constellation Brands Inc - Class A
Q4 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +8.73%.
Did STZ Beat Earnings? Q4 2026 Results
Constellation Brands delivered a modest disappointment in Q4 FY2026, with both earnings and revenue falling short of Wall Street expectations as the company navigated a period of significant portfolio transformation. Reported EPS of $1.90 missed the $1.98 consensus estimate by 4.04%, while revenue of $1.92 billion trailed the $1.94 billion forecast by 0.77% and declined 11.3% year-over-year, a drop heavily distorted by the divestitures of SVEDKA and its 2025 wine brands. Stripping out those transactions, organic net sales were essentially flat, with the Beer Business, anchored by standout depletion growth from Pacifico and Victoria, posting just over 1% net sales growth but absorbing a 340 basis point margin contraction from aluminum tariff headwinds and higher depreciation. Looking ahead, management issued FY2027 comparable EPS guidance of $11.20 to $11.90 while simultaneously withdrawing its FY2028 targets, citing limited visibility into the macroeconomic and tariff environment, a signal that near-term uncertainty remains a meaningful overhang on the company's longer-term growth story.
- Beer Business ranked #1 dollar share gainer in Circana U.S. tracked channels, gaining 0.6 share points in Q4
- Pacifico depletion growth of approximately 21% in Q4 and over 15% for full year
- Victoria depletion growth of approximately 17% in Q4 and over 16% for full year
- Modelo Chelada brands depletion growth of approximately 5% in Q4
- Wine & Spirits remaining portfolio delivered over 8% depletion growth in Q4
- Favorable pricing partially offset by unfavorable mix in Beer segment
“Despite the dynamic operating environment in fiscal 2026, we remained focused on the factors within our control and executed with discipline. That execution enabled our Beer Business to continue to be the #1 dollar share gainer across U.S. tracked channels, and our remaining portfolio in our Wine & Spirits Business to deliver depletion growth during the year. As we look ahead to fiscal 2027, we expect consumers will continue to navigate a shifting macroeconomic environment, but we remain encouraged by the momentum we saw in the fourth quarter. Our strategic priorities continue to be clear, and our best-in-class organization is energized and committed to delivering solid results.”
Constellation Brands CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2027 (year ending February 28, 2027), the company expects: reported EPS of $11.10-$11.80 and comparable EPS of $11.20-$11.90; enterprise organic net sales growth/decline of (1)% to 1%; Beer net sales growth/decline of (1)% to 1%; Wine & Spirits organic net sales growth/decline of (1)% to 1%; enterprise operating margin of 32%-33% (reported and comparable); Beer operating margin of 37%-38%; Wine & Spirits operating margin of 5%-6%; tax rate of approximately 20%; operating cash flow of $2.4-$2.5 billion; capital expenditures of approximately $800 million; and free cash flow of $1.6-$1.7 billion. The company withdrew its previously issued fiscal 2028 outlook, citing the evolving socioeconomic backdrop and limited near-term visibility. Management noted that the operating environment is expected to remain dynamic given macroeconomic and tariff uncertainties.
STZ YoY Financials
STZ Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.