The raised reported EPS guidance and reaffirmed comparable EPS outlook, combined with accelerating Beer share gains and a small accretive RTD acquisition, signal improving operational momentum. Watch for Beer depletion trends to turn positive and for SpikedAde's contribution to the RTD category growth in coming quarters.
Price Chart
Executive Summary
Constellation Brands reported Q2 FY2027 comparable EPS of $3.74, beating consensus of $3.55 by 5.4%, on net sales of $2.633B (+6% YoY). The Beer business delivered 5% net sales growth and led category share gains, while Wine & Spirits posted 17% net sales growth. Management raised the reported EPS outlook to $11.85-$12.55 and reaffirmed comparable EPS of $11.20-$11.90. The company also completed the $75M acquisition of SpikedAde (up to $278M contingent consideration) to expand into the fast-growing RTD category. The combination of a solid beat, accelerating share gains, and a small tuck-in acquisition supports a bullish read.
Key Financial Metrics
Key Facts
- Comparable EPS of $3.74 beat consensus of $3.55 by 5.4%
- Net sales of $2.633B grew 6% YoY (organic +6%)
- Beer net sales +5%, Beer operating income +1%
- Wine & Spirits net sales +17% (organic), depletions +10.2%
- Reported EPS outlook raised to $11.85-$12.55 (from $11.50-$12.20)
- Comparable EPS outlook reaffirmed at $11.20-$11.90
- Completed acquisition of SpikedAde for $75M upfront + up to $278M contingent consideration
- Year-to-date share repurchases of $530M through September 2026
- Quarterly dividend of $1.03 per share declared
Financial Impact
Comparable EPS beat by $0.19 (5.4%) on $2.633B revenue (+6% YoY); Beer operating margin 39.0% (down 160bps YoY on higher marketing spend); Wine & Spirits operating margin improved to 3.8% from -14.6%
Risk Factors
- Beer depletions declined 0.6% in Q2, with Modelo Especial down ~2% and Corona Extra down ~5%
- Beer operating margin compressed 160bps to 39.0% due to increased marketing investment
- SpikedAde contingent consideration of up to $278M could weigh on future cash flow if performance targets are met
- Tariff and foreign exchange risks remain given Mexican production footprint
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000016918-26-000039 |
| Document: stz-20261006.htm | 0000016918-26-000039 |
| Document: stzex992_10620268k.htm | 0000016918-26-000039 |
| Document: 0000016918-26-000039-index-headers.html | 0000016918-26-000039 |
| Document: 0000016918-26-000039-index.html | 0000016918-26-000039 |
| Document: 0000016918-26-000039.txt | 0000016918-26-000039 |
| 8-K Data (Synthetic) | 0000016918-26-000039 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | Institutional Cluster | $138.20 | awaiting T+5 | — | $135.62 (−1.87%) |
Oct 6, 2026 20d ago | 8-K | $118.39 $127.41 | ▲ +7.62% | ▲ +8.60% | $135.62 (+14.55%) |
Sep 10, 2026 6w ago | Press Release | $122.45 $118.97 | ▼ −2.84% | ▼ −2.62% | $135.62 (+10.76%) |
Jun 30, 2026 16w ago | 8-K | $136.88 $131.76 | ▼ −3.74% | ▼ −4.00% | $135.62 (−0.92%) |
Jun 30, 2026 16w ago | Press Release | $136.88 $131.76 | ▲ +3.74% | ▲ +4.00% | $135.62 (+0.92%) |
May 21, 2026 22w ago | 8-K | $150.75 $138.74 | ▼ −7.97% | ▼ −9.82% | $135.62 (−10.03%) |
May 6, 2026 24w ago | 8-K | $150.10 $140.52 | ▼ −6.38% | ▼ −7.89% | $135.62 (−9.65%) |
May 4, 2026 25w ago | Press Release | $149.74 $142.44 | ▼ −4.87% | ▼ −6.86% | $135.62 (−9.43%) |
Apr 8, 2026 28w ago | 8-K | $162.81 $163.45 | ▲ +0.39% | ▼ −2.79% | $135.62 (−16.70%) |
Apr 8, 2026 28w ago | Press Release | $162.81 $163.45 | ▲ +0.39% | ▼ −2.79% | $135.62 (−16.70%) |
US Market Status
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