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Constellation Brands

Constellation Brands (STZ) Q1 2027 Earnings

Reported Jun 30, 2026 at 4:08 PM ET · SEC Source

Q1 27 EPS

$3.43

BEAT +6.93%

Est. $3.21

Q1 27 Revenue

$2.43B

BEAT +1.71%

Est. $2.39B

vs S&P Since Q1 27

-5.5%

TRAILING MARKET

STZ -4.2% vs S&P +1.2%

Market Reaction

Did STZ Beat Earnings? Q1 2027 Results

Constellation Brands kicked off fiscal 2027 with a solid beat on both the top and bottom lines, as the beer-focused beverage giant posted comparable EPS of $3.43 for Q1, clearing the $3.21 consensus estimate by 6.93%, while revenue of $2.43 billion e… Read more Constellation Brands kicked off fiscal 2027 with a solid beat on both the top and bottom lines, as the beer-focused beverage giant posted comparable EPS of $3.43 for Q1, clearing the $3.21 consensus estimate by 6.93%, while revenue of $2.43 billion edged 1.71% ahead of expectations despite a reported 3.3% year-over-year decline tied to the company's 2025 wine divestitures. Strip out those divested brands and organic net sales grew 3%, with the Beer segment, the company's core engine, delivering $2.28 billion in net sales, up 2%, on the back of higher shipment volumes and favorable pricing. Pacifico and Victoria continued to punch above their weight within the portfolio, helping offset softer volumes from Modelo Especial and Corona Extra. Strong cash generation, with free cash flow reaching $484.60 million, up 9%, supported more than $400 million in shareholder returns during the quarter. Looking ahead, management affirmed comparable EPS guidance of $11.20 to $11.90 for the full fiscal year, with enterprise organic net sales growth expected in a range of negative 1% to positive 1%.

Key Takeaways

  • • Beer shipment volume growth of 1.8% and continued favorable pricing
  • • Pacifico, Victoria, and Modelo Chelada brands driving beer depletion offsets with ~21%, ~14%, and ~6% growth respectively
  • • Beer Business ranked #1 dollar share gainer in Circana U.S. tracked channels
  • • Wine and Spirits organic net sales growth of 8% driven by 7.7% organic shipment volume increase
  • • Kim Crawford depletions up approximately 4% and Mi CAMPO Tequila depletions up approximately 62%
  • • Lower SG&A expenses declining from $500.7 million to $457.0 million
  • • Lower asset impairment charges of $18.3 million vs. $52.1 million year-ago
  • • Lower interest expense of $85.8 million vs. $98.9 million year-ago

STZ Forward Guidance & Outlook

For fiscal 2027 (year ending February 28, 2027), the company updated its reported EPS outlook to $11.50–$12.20 and affirmed comparable EPS guidance of $11.20–$11.90. Enterprise organic net sales growth (decline) is expected at (1)%–1%, with Beer net sales growth (decline) of (1)%–1% and Wine and Spirits organic net sales growth (decline) of (1)%–1%. Enterprise operating margin is guided at 32%–33% (both reported and comparable), with Beer operating margin of 37%–38% and Wine and Spirits operating margin of 5%–6%. The company targets 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. Tax rate is expected at approximately 17% reported and approximately 20% comparable.

24/7 Wall St

STZ YoY Financials

Q1 2027 vs Q1 2026, source: SEC Filings

24/7 Wall St

STZ Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 25 Q1 27

“Our portfolio continues to benefit from the strength of our brands, disciplined commercial execution, and our ability to connect with consumers across a broad range of occasions. Despite a discerning and value-conscious consumer environment, we grew Enterprise organic net sales and gained share during the first quarter of fiscal 2027. As we continue to deepen our understanding of evolving consumer needs and invest behind our strategic priorities, we believe that we remain well positioned to drive sustainable organic growth while maintaining healthy investment in our brands.”

— Nicholas Fink, Q1 2027 Earnings Press Release

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