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SMITHS FALLS, Ontario--(BUSINESS WIRE)--Canopy Growth Corporation (“Canopy Growth”, “our”, “we” or the “Company”) (TSX: WEED) (Nasdaq: CGC), a leading global company committed to bettering lives through cannabis, today announced a broadening of its medical cannabis portfolio in Australia across its Spectrum Therapeutics, Spectrum Therapeutics Reserve, 7ACRES, Tweed and Twd. brands. The expansion introduces two new product formats, and new formulations within its existing oil and softgel ranges.

Canopy Growth (CGC -0.02%) grew its revenue by 13% year over year to $58.9 million in its fiscal 2027 first quarter, but the stock barely reacted because investors have seen plenty of nascent Canopy turnarounds that never quite materialized.

To be sure, the company's improvements weren't limited to the top line. Its adjusted gross margin increased from 25% in the prior-year period to 31%, while its adjusted EBITDA loss narrowed by 59% to $2.3 million. Canadian medical cannabis revenue increased 22%, adult-use cannabis sales grew 10%, and international cannabis sales rose 10%. But Canopy Growth still isn't profitable.

The muted response The company lost $10.6 million during the quarter (which ended June 30), while its free cash outflow increased to $18.6 million, up from $8.4 million a year earlier. That's a problem for a company that has spent years burning cash, restructuring operations, and issuing more shares of stock to raise funds.

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There's another wrinkle, too. Some of Canopy's growth this year came from its acquisition of MTL Cannabis. The company specifically attributed portions of its Canadian medical and adult-use growth to the acquisition. So that 13% top-line increase doesn't mean Canopy's existing businesses suddenly returned to double-digit organic growth. That may help explain the market's muted response to the quarterly report.

Image source: Getty Images.

The market clearly wasn't looking for another quarter where Canopy simply lost less money. It was hoping for evidence that the business will eventually be able to support itself without continually consuming cash. The latest results suggest that Canopy is moving in that direction. But after years of disappointment, investors aren't giving management much credit for promises. If revenue continues growing, margins improve, and cash burn starts falling, the stock could become more interesting. Until then, 13% revenue growth is encouraging, but it's not enough to prove Canopy's turnaround has finally arrived.

Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Canopy Growth's cannabis business is showing signs of a turnaround, with revenue growth, improving margins and a narrower EBITDA loss fueling its rally.

SMITHS FALLS, Ontario--(BUSINESS WIRE)--Canopy Growth Corporation (“Canopy Growth”, “our”, “we” or the “Company”) (TSX: WEED) (Nasdaq: CGC), a leading global company committed to bettering lives through cannabis, today announced that its Kincardine, Ontario cultivation facility (“Kincardine”) has received renewed European Union Good Manufacturing Practice (“EU GMP”) certification from the Regierungspräsidium Tübingen – Leitstelle Arzneimittelüberwachung Baden-Württemberg. With its EU GMP status.

The 2026 Cannabis Wildcard: How Tax Reform Could Reset Stock ValuationsCanopy Growth NASDAQ: CGC is positioning itself for further expansion in medical cannabis, European markets and Canadian recreational cannabis after restructuring operations, reducing costs and acquiring MTL Cannabis, President and CEO Luc Mongeau said during a Canaccord Genuity presentation.

Mongeau, who has served as CEO for 18 months, said the company has shifted its focus toward operating as a consumer cannabis business rather than prioritizing cash management and pursuing opportunities across too many markets. He said Canopy reduced costs by more than C$30 million, refinanced the organization, strengthened its management team and acquired MTL Cannabis.

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Constellation Brands: A Fallen Star or a Hidden Value Play?“We are really taking the next few critical step to position Canopy Growth to really win in the global cannabis market,” Mongeau said.

Growth Across Canadian and European Operations Mongeau said Canopy holds the No. 1 position in Canadian medical cannabis and has improved its standing in the Canadian adult-use market. The company was ranked No. 10 in Canadian recreational cannabis when he joined, moved to No. 8 after streamlining operations and now ranks No. 6 following the MTL Cannabis acquisition, according to Mongeau. Its goal is to become a top-three player in the market.

Profit from the Green Wave: Top Cannabis Stocks to WatchWhile acknowledging that Canadian recreational cannabis is a relatively mature market, Mongeau described it as a roughly C$5 billion market growing at 3% to 5%. He expects the industry to consolidate, noting that more than 1,000 licensed producers currently operate in Canadian recreational cannabis. He said the market could ultimately be led by approximately seven major participants.

For fiscal 2026, Canopy reported 20% growth in Canadian adult-use cannabis and 18% growth in its medical business, Mongeau said. For the first quarter of fiscal 2027, he said consolidated revenue rose 13%, including:

10% growth in Europe; 10% growth in Canadian recreational cannabis; 22% growth in Canadian medical cannabis; and 6% growth at Storz & Bickel, its medical vaporizer business. Mongeau also said the company’s gross margin reached 31% in its latest quarterly results, representing a 600-basis-point improvement from the prior year. During the discussion, the operator characterized the most recent margin level as “36-ish percent,” but Mongeau specifically cited 31% during his presentation.

MTL Cannabis Acquisition Targets Flower Supply and Quality A central component of Canopy’s strategy is improving cultivation output and flower quality. Mongeau said Canopy had not historically treated cultivation as a core operational priority, which contributed to supply constraints and inconsistent availability in international markets.

MTL Cannabis brought cultivation expertise and “passion for the plant” into the company, Mongeau said. Canopy is investing in systems, processes and capital expenditures intended to increase yields and production by as much as 30%, creating additional supply for markets including Europe.

“You need great flower consistently to win,” Mongeau said, adding that the company’s operating reviews and systems are now centered on producing higher-quality flower.

Chief Financial Officer Tom Stewart said less than 20% of Canopy’s flower production is currently exported. He said the company is integrating MTL’s operations with Canopy’s facilities and production footprint to eliminate overlap, reduce costs and improve the quality of products supplied to consumers and patients.

Canopy has three cultivation facilities and is converting a hybrid facility to fully indoor cultivation, Mongeau said. The company is cultivating in Canada at facilities certified under European Union Good Manufacturing Practice, or EU GMP, standards.

Europe Seen as Major Opportunity Mongeau identified Europe as Canopy’s largest near-term opportunity, particularly Germany, Poland and the United Kingdom. He said Canopy has invested in sales teams, distribution relationships, brands and connections with pharmacists and doctors, but its progress in Europe had been hampered by inventory shortages.

In Poland, Canopy recently returned to inventory availability and rose to the No. 3 market position, Mongeau said. The company is also making its first shipment to the United Kingdom during the current quarter, with related sales expected to appear in the third quarter.

Canopy’s European business is currently operating at approximately C$10 million per quarter, or about C$40 million annually, according to Mongeau. He said the company is targeting a run rate of more than C$100 million, and eventually C$100 million to C$150 million annually, supported primarily by Germany.

The company’s supply chain is EU GMP-compliant from cultivation through importation into Germany, repackaging and distribution, Mongeau said. He said Canopy is also working to qualify its Smiths Falls facility to produce EU GMP-compliant cannabis 2.0 products, including softgels, oils, concentrate distillates, vapes and eventually pre-rolls.

Stewart said Europe offers more attractive pricing than Canada and could support premium offerings based on MTL Cannabis flower quality. Rather than compete primarily in value-priced products, Canopy plans to focus on premium categories, he said.

Brands and Vaporizer Expansion Mongeau said Canopy plans to use its Tweed and Spectrum brands to compete in premium European medical cannabis segments. He said Germany continues to have a sizable price band of roughly €5 to €7 that has remained resilient despite broader pricing discussion in the market. Recent German research showed positive attitudes toward Tweed, Spectrum and MTL brands, he said.

Canopy also sees expansion potential for Storz & Bickel, which Mongeau described as the leading herbal medical vaporizer company. The company is pursuing innovation in concentrate vaporizers, a category Mongeau said is substantially larger than herbal vaporizers.

Overall, management said it is prioritizing cultivation, operating efficiency and a controlled expansion of its EU GMP supply chain rather than rapidly entering every emerging European market. Stewart said those foundational investments should benefit additional markets as they open.

About Canopy Growth (NASDAQ:CGC)Canopy Growth Corporation is a leading Canadian cannabis company engaged in the production, distribution and sale of both medical and recreational cannabis products. Headquartered in Smiths Falls, Ontario, the company cultivates a diversified portfolio of offerings that includes dried flower, pre-rolled joints, oils, softgel capsules and edibles. Canopy Growth also markets derivative products such as beverages and wellness formulations under a range of brands, aiming to serve both patient and adult-use markets.

The company operates through multiple subsidiaries, including Tweed Inc, Spectrum Therapeutics and Tokyo Smoke, each targeting distinct consumer segments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Canopy Growth (CGC +4.07%) is one of a handful of marijuana stocks that were all the rage early on as investors thought pot would be a huge growth market. Pot demand has grown dramatically, but marijuana stocks didn't live up to the early hype. But will that change if the classification of marijuana changes at the Federal level in the United States? Not for Canopy Growth, here's why.

A slow progression for pot? Marijuana has been legal to use in an increasing number of states. Some have focused on medical use, while others have gone all the way to legalizing recreational use. That opened the way for companies to grow and sell marijuana.

Image source: Getty Images.

There was just one problem. Marijuana is also regulated at the Federal level. For a long time, marijuana was considered to be in the same category as heroin. Now, however, the drug has been rescheduled, putting it in the same classification as acetaminophen, an over-the-counter pain medication. While pot is still regulated, the marijuana industry's path forward is much clearer. That could open up more opportunities for growth for marijuana companies in the U.S. market.

Canopy Growth isn't likely to benefit from rescheduling Canopy Growth is a pot stock, so in the big picture, rescheduling is good news. However, Canopy Growth's core operations are in Canada and Europe. With regard to the U.S. market, the company's annual report explains:

We are not considered a U.S. Marijuana Issuer (as defined in the Canadian Securities Administrators Staff Notice 51-352 – Issuers with U.S. Marijuana-Related Activities (the "Staff Notice")) nor do we have material ancillary involvement in the U.S. cannabis industry in accordance with the Staff Notice. While we have an investment in Canopy USA, which is a platform that is intended to enable such U.S.-based companies that may themselves participate in the U.S. cannabis market to operate, the transaction structure was intended to ensure that we do not violate the federal laws of the United States respecting cannabis and do not allow us to participate in cannabis activities in the United States or direct the activities of Canopy USA. Where a noncontrolled affiliate has expressed an intent to enter the U.S. cannabis market, we have taken steps to insulate ourselves from all economic and voting interests.

That's a lot! The summary is that Canopy Growth is an investor in Canopy USA, but it doesn't directly control Canopy USA. That's issue number one. The second issue is that Canopy USA is more focused on recreational use than medical use, which Canopy Growth explained limits the benefit that Canopy USA will see from the rescheduling. Indeed, the rescheduling was meant to increase access to the drug for medical purposes and to make it easier for companies to do research around marijuana. Making it legal for recreational purposes is a goal that is further down the road.

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Canopy Growth isn't in the right place at the right time What's notable is that Canopy Growth is heavily involved in the medical marijuana market in Canada. In fact, the company recently strengthened its market position there by acquiring MTL Cannabis. But the uncertain legal environment in the United States led the company to take a different approach, limiting its exposure to and business control in the U.S. market.

That wasn't a bad business decision, given the circumstances and the opportunities available elsewhere. But it has left the company in a situation where U.S. rescheduling just isn't as big a deal as investors may hope. And it doesn't have as much control as investors may like to capitalize on such changes, anyway.

Canopy Growth Corporation (CGC - Free Report) came out with a quarterly loss of $0.02 per share versus the Zacks Consensus Estimate of a loss of $0.04. This compares to a loss of $0.14 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +50.00%. A quarter ago, it was expected that this company would post a loss of $0.06 per share when it actually produced a loss of $0.17, delivering a surprise of -183.33%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Canopy Growth, which belongs to the Zacks Medical - Products industry, posted revenues of $58.63 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.20%. This compares to year-ago revenues of $52.13 million. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Canopy Growth shares have lost about 18.2% since the beginning of the year versus the S&P 500's gain of 12.6%.

What's Next for Canopy Growth?While Canopy Growth has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Canopy Growth was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.03 on $58.66 million in revenues for the coming quarter and -$0.11 on $243.57 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, FitLife Brands Inc. (FTLF - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 13.

This company is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

FitLife Brands Inc.'s revenues are expected to be $26.5 million, up 64.3% from the year-ago quarter.

Canopy Growth Corporation (TSX:WEED, NYSE:CGC) reported continued revenue growth across its businesses in the first quarter of fiscal 2027, while the cannabis company narrowed its adjusted EBITDA loss from a year earlier, sending its shares 5% higher on Friday morning.

Net revenue for the three months ended June 30, 2026, increased 13% year-over-year to C$81.2 million, exceeding the analyst consensus estimate of C$58.89 million.

Adjusted loss per share was C$0.03, compared with the consensus estimate of a C$0.06 loss.

The Smiths Falls, Ontario-based company said revenue increased across all of its businesses during the quarter.

Cannabis net revenue rose 14% year-over-year to C$65.1 million. Canada medical cannabis revenue increased 22% to C$25.8 million, driven by growth in insured customers and the acquisition of MTL Cannabis, partially offset by a reduction in the Veterans Affairs Canada reimbursement rate for medical cannabis.

Canada adult-use cannabis revenue increased 10% to C$29.7 million, primarily reflecting higher flower sales following the MTL Cannabis acquisition, partially offset by declines in opportunistic bulk sales.

International cannabis revenue rose 10% to C$9.6 million, with Canopy Growth pointing to strength in Europe, particularly Poland.

Revenue from Storz & Bickel increased 6% to C$16.1 million, which Canopy Growth attributed to prior-year product portfolio expansion and increased sales across non-core markets.

Adjusted gross margin improved to 31% from 25% a year earlier, while consolidated gross margin increased to 27% from 25%.

Net loss was 68% lower year-over-year, while adjusted EBITDA loss narrowed 59% to C$3.2 million. Canopy Growth attributed the improvement primarily to revenue growth across both segments and continued cost savings, partially offset by the reduction in the Veterans Affairs Canada reimbursement rate.

“The renewed focus and strong momentum we established over the past year have continued into fiscal 2027,” Canopy Growth CEO Luc Mongeau said.

“In the first quarter, we achieved net revenue growth in every business through solid execution across the organization. We have clear strategies to deliver further growth in each of our end markets.”

SMITHS FALLS, Ontario--(BUSINESS WIRE)--Canopy Growth Reports First Quarter Fiscal Year 2027 Financial Results; Delivers 13% Net Revenue Growth with Contributions from All Businesses.

Canopy Growth Corporation (CGC - Free Report) closed at $0.89 in the latest trading session, marking a -1.82% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.05%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, lost 0.64%.

Prior to today's trading, shares of the company had lost 0.88% lagged the Medical sector's gain of 3.64% and the S&P 500's gain of 0.61%.

The investment community will be paying close attention to the earnings performance of Canopy Growth Corporation in its upcoming release. On that day, Canopy Growth Corporation is projected to report earnings of -$0.04 per share, which would represent year-over-year growth of 71.43%. At the same time, our most recent consensus estimate is projecting a revenue of $58.52 million, reflecting a 12.25% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.11 per share and a revenue of $243.57 million, representing changes of +75.56% and +18.26%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Canopy Growth Corporation. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Canopy Growth Corporation currently has a Zacks Rank of #3 (Hold).

The Medical - Products industry is part of the Medical sector. With its current Zacks Industry Rank of 166, this industry ranks in the bottom 33% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Canopy Growth Corporation (CGC - Free Report) closed at $0.91 in the latest trading session, marking a -2.67% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.14% for the day. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 0.57%.

The stock of company has fallen by 1.16% in the past month, lagging the Medical sector's gain of 5.8% and the S&P 500's gain of 0.25%.

Investors will be eagerly watching for the performance of Canopy Growth Corporation in its upcoming earnings disclosure. The company is expected to report EPS of -$0.04, up 71.43% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $58.52 million, indicating a 12.25% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of -$0.11 per share and a revenue of $243.57 million, demonstrating changes of +75.56% and +18.26%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Canopy Growth Corporation. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Canopy Growth Corporation is currently sporting a Zacks Rank of #3 (Hold).

The Medical - Products industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 168, placing it within the bottom 32% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

SMITHS FALLS, Ontario--(BUSINESS WIRE)--Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (Nasdaq: CGC) announced it will be participating at the Canaccord Genuity Growth Conference in August 2026. Canopy Growth CEO Luc Mongeau will be presenting on Tuesday, August 11 at 12:00 p.m. The presentation will be publicly accessible via live webcast at https://event.summitcast.com/view/WuFmFdTcA9mVsUGHZJFU62/8jLaQ2EHsfTiWktFQKVomw, and archived for 180 days. Canaccord Genuity's.

Canopy Growth Corporation (CGC - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this company have returned -4.5% over the past month versus the Zacks S&P 500 composite's +1.1% change. The Zacks Medical - Products industry, to which Canopy Growth belongs, has gained 2.5% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Canopy Growth is expected to post a loss of $0.04 per share for the current quarter, representing a year-over-year change of +71.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -50%.

The consensus earnings estimate of -$0.11 for the current fiscal year indicates a year-over-year change of +75.6%. This estimate has changed -13.8% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $0.09 indicates a change of +18.2% from what Canopy Growth is expected to report a year ago. Over the past month, the estimate has changed +80%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Canopy Growth is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Canopy Growth, the consensus sales estimate of $58.52 million for the current quarter points to a year-over-year change of +12.3%. The $243.57 million and $266.23 million estimates for the current and next fiscal years indicate changes of +18.3% and +9.3%, respectively.

Last Reported Results and Surprise HistoryCanopy Growth reported revenues of $51.94 million in the last reported quarter, representing a year-over-year change of +14.7%. EPS of -$0.17 for the same period compares with -$0.94 a year ago.

Compared to the Zacks Consensus Estimate of $53.26 million, the reported revenues represent a surprise of -2.47%. The EPS surprise was -183.33%.

Over the last four quarters, Canopy Growth surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Canopy Growth is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Canopy Growth. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

In the latest close session, Canopy Growth Corporation (CGC - Free Report) was down 1.04% at $0.95. This move lagged the S&P 500's daily loss of 0.45%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 1.16%.

Shares of the company witnessed a loss of 5.88% over the previous month, trailing the performance of the Medical sector with its gain of 6.33%, and the S&P 500's gain of 2.14%.

The investment community will be paying close attention to the earnings performance of Canopy Growth Corporation in its upcoming release. It is anticipated that the company will report an EPS of -$0.04, marking a 71.43% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $58.52 million, indicating a 12.25% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of -$0.11 per share and a revenue of $243.57 million, signifying shifts of +75.56% and +18.26%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Canopy Growth Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 13.79% lower within the past month. As of now, Canopy Growth Corporation holds a Zacks Rank of #3 (Hold).

The Medical - Products industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 178, placing it within the bottom 28% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Canopy Growth (CGC +5.41%) may have surged during the spring's rescheduling rally for marijuana stocks, but since then, this popular cannabis legalization play has coughed back these gains, falling back below $1 per share as I write this.

Nevertheless, one sell-side analyst remains very bullish on the company's prospects. But I'm not convinced. While the analyst provides substance to back his bull case, his argument doesn't quite explain how Canopy can deliver triple-digit percentage gains from here.

Image source: Getty Images.

Canopy Growth and the aggressive price target Currently, the average analyst price target for Canopy Growth is $1.22 per share, about 27% above its U.S. share price as I write this. An outlier of a price target paints a completely different picture of Canopy Growth and its prospects. In a June 16 research note, Roth Capital Partners' Bill Kirk reiterated his buy rating and per-share price target of 5 Canadian dollars on Canopy Growth.

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That's about four times the current price of Canopy's shares listed on the Toronto Stock Exchange (TSX). In his update, the analyst noted that, if not for one-time expenses, Canopy Growth would have "produced a record adjusted EBITDA" (earnings before interest, taxes, depreciation, and amortization) during its recently completed fiscal fourth quarter. Kirk also cited improved market share, further cost-reduction efforts, and other positives, such as the prospect of reduced future shareholder dilution.

Take this outlier forecast with a grain of salt Kirk may lay out a strong argument, but it's difficult to see how his forecast will translate into a 4x surge for Canopy shares. His FY2027 estimates call for modest revenue growth of around 5.1% and for adjusted EBITDA to remain negative, though near breakeven. Meeting or beating this may be enough to send the stock modestly higher, to the aforementioned median price target, but not fourfold.

Perhaps Kirk's forecast anticipates faster-than-expected progress in U.S. federal marijuana legalization efforts. Still, there are other marijuana stocks with stronger fundamentals and legalization catalysts, such as already profitable U.S.-based cannabis companies licensed at the state level. If you're bullish on the trend, consider these names instead, and take Kirk's optimistic forecast on Canopy Growth with a grain of salt.

Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Companies try to highlight the best news when they report earnings. That's to be expected, but you need to go into earnings season knowing you have read beyond the headlines. Canopy Growth (CGC +2.31%) reported huge growth in its medical marijuana business, which saw revenues increase 27% in the fourth quarter of fiscal 2026 and 17% for the full fiscal year. The rest of the business was a bit more mixed.

The good news and the less-than-good news There's no question that Canopy Growth's medical marijuana business is doing well right now. It is also worth noting that the company recently bought MTL Cannabis, a move that should solidify its already strong position in the Canadian medical marijuana market. The strong growth in medical marijuana revenues highlights why the company is leaning into this division.

Image source: Getty Images.

The problem is that this isn't the company's only business. Its recreational marijuana business increased revenue by 20% in fiscal 2026, but the fourth quarter saw only a 1% increase. While the company attributes the full-year growth to "growth in infused PRJ offerings and new All-In-One vaporizers launched early in the fiscal year," the fourth quarter's 1% revenue growth suggests it ended the year on a weak note. That hints this division's outlook may not be as robust as the full-year growth suggests.

Meanwhile, the company's international cannabis sales rose 68% in the quarter, but fell 7% year over year. Supply chain issues were highlighted as a problem earlier in the year. Once again, the outlook is less clear than investors may like. And then there's the Storz & Bickel vaporizer business, which saw sales decline 14% for both the full fiscal year and in the fourth quarter.

Not enough good news to make Canopy Growth a buy It is likely to require more than one strong division for Wall Street to get excited about Canopy Growth again. But there's still some more bad news to consider. Notably, the company's gross margin fell four percentage points in the fourth quarter and six percentage points for the full fiscal year.

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Not surprisingly, Canopy Growth reported negative earnings again in fiscal 2026. In fact, it hasn't reported positive earnings since it went public, more than a decade ago. Now add in the fact that it recapitalized its balance sheet in fiscal 2026, exchanging shares for debt, and most investors should probably watch from the sidelines.

Could Canopy Growth's stock rally from here? Sure. But with only one business clearly performing well, only the most aggressive investors should probably bet on this penny stock having a sustained rally.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

In the latest trading session, Canopy Growth Corporation (CGC - Free Report) closed at $0.96, marking a -1.04% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.37%. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw a decrease of 1.33%.

The company's stock has dropped by 7% in the past month, falling short of the Medical sector's gain of 1.49% and the S&P 500's gain of 2.02%.

The investment community will be closely monitoring the performance of Canopy Growth Corporation in its forthcoming earnings report. In that report, analysts expect Canopy Growth Corporation to post earnings of -$0.04 per share. This would mark year-over-year growth of 71.43%. At the same time, our most recent consensus estimate is projecting a revenue of $58.52 million, reflecting a 12.25% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.11 per share and revenue of $243.57 million. These totals would mark changes of +75.56% and +18.26%, respectively, from last year.

Any recent changes to analyst estimates for Canopy Growth Corporation should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 13.79% downward. At present, Canopy Growth Corporation boasts a Zacks Rank of #3 (Hold).

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Key Takeaways CGC framed fiscal 2026 as a reset built on leaner costs, a stronger balance sheet and growth.MTL integration is central, with CGC already executing $6M of targeted $10M annualized synergies.CGC expects fiscal 2027 revenue growth, better margins, lower costs and positive adjusted EBITDA. Canopy Growth Corporation (CGC - Free Report) used its fourth-quarter call to argue that fiscal 2026 was a reset year, with management emphasizing a leaner cost base, a stronger balance sheet and a clearer growth agenda anchored in medical cannabis and Europe.

The setup matters because the quarter itself was uneven. CGC reported a loss of 17 cents per share, wider than the Zacks Consensus Estimate of a loss of 6 cents. Revenues of $51.9 million also missed the consensus mark of $53.3 million by 2.5%.

CGC Makes the Reset Its Main MessageChief executive officer Luc Mongeau described fiscal 2026 as a defining year in which Canopy streamlined operations, reallocated resources and reset the cost structure. He said those actions were beginning to show up in the business and should have a larger impact in fiscal 2027.

Mongeau also tied that reset to a recapitalization that stabilized liquidity and extended debt maturities to 2031. He presented the stronger balance sheet as a way to reduce risk while giving the company more flexibility to pursue growth opportunities.

The press release supported that framing. Canopy ended fiscal 2026 with C$364.7 million in cash and a net cash position of C$131.3 million compared with net debt of C$172.6 million a year earlier.

Canopy Growth Puts MTL at the CenterCanopy made the MTL Cannabis acquisition the central strategic theme of the call. Mongeau said the deal established the company as Canada’s leading medical cannabis business by revenue and added cultivation expertise that should help improve product quality and consistency across the network.

Management said integration has moved quickly. Mongeau told analysts the company is already executing on C$6 million of a targeted C$10 million in annualized cost synergies, while also using Canopy’s distribution network to broaden MTL’s reach, including Germany.

That synergy story went beyond cost cuts. In response to Alliance Global Partners, Mongeau said it is still early, but Canopy expects better flower quality from the combined cultivation base to support growth in both Canadian recreational cannabis and Europe.

CGC Sees Growth in Medical and EuropeFourth-quarter net revenues rose 10% year over year to C$71.2 million, with cannabis revenues up 20% to C$54.5 million. The best-performing areas were Canada medical and international cannabis, which management repeatedly highlighted as the clearest proof that the strategy is gaining traction.

Canada medical revenues increased 27% in the quarter to C$25.3 million, helped by growth in insured patients and a broader assortment. For the full year, Canada medical revenues rose 18%, and adult-use cannabis revenues increased 20%.

Europe was another focal point. Mongeau said Canopy had fixed supply chain issues that hurt earlier results, and international cannabis revenues climbed 68% in the quarter to C$8.6 million. He added that momentum continued into the first quarter of fiscal 2027 and that the company is targeting U.K. expansion this year.

Canopy Growth Argues Margins Are Improving Beneath ChargesChief accounting officer and CFO Thomas Stewart acknowledged that reported profitability was pressured by acquisition-related charges. Cannabis gross margin was 7% in the quarter, weighed down by C$10.7 million of inventory-related charges tied to the MTL transaction and portfolio rationalization.

Stewart’s main rebuttal was adjusted gross margin. Excluding acquisition-related charges, adjusted gross margin for the cannabis segment improved to 26% from 12% a year ago, which he said better reflects the underlying earnings power of the business as integration progresses.

The same argument extended to EBITDA. Adjusted EBITDA loss narrowed to C$6.3 million from C$9.2 million a year earlier, and Stewart said the company would have been closer to breakeven without the inventory charges.

CGC Q&A Highlights the Real HeadwindsThe toughest analyst questioning centered on Veterans Affairs reimbursement changes in Canada medical. Asked by Canaccord Genuity and Zuanic & Associates, Stewart said the company expects pressure on revenues, even as it uses pricing, product mix and retention efforts to protect EBITDA and gross margin.

That was one of the clearest caution points on the call. Stewart said Canopy is seeing positive early fiscal 2027 momentum in medical, but it will be difficult to maintain the same growth level seen in fiscal 2026, and getting back to flat year-over-year performance in Canadian medical will be challenging.

Analysts also pushed on U.S. strategy, but management stayed disciplined. Mongeau said near-term priorities remain Canada and international markets, while Stewart said broader benefits in the U.S. depend on uplisting potential for plant-touching businesses.

Canopy Growth Leaves a Narrower 2027 AgendaThe forward message was focused. The press release said fiscal 2027 should bring net revenue growth, meaningful gross margin improvement and lower operating expense, with positive adjusted EBITDA expected during the year and larger gains weighted to the second half.

Mongeau’s closing comments matched that outlook. He pointed to Canadian medical leadership, more room for adult-use share gains and stronger execution in Germany and Poland as the company’s clearest priorities coming out of the quarter.

The broader takeaway from the call was that Canopy is no longer presenting itself as a story built on optionality alone. Management is trying to show that restructuring, balance sheet repair and MTL integration can translate into more durable operating improvement in fiscal 2027.

Zacks Signals Remain MixedCGC carries a Zacks Rank #3 (Hold). Under the Zacks framework, that points to a more balanced near-term outlook than a Zacks Rank #1 (Strong Buy) or 2 (Buy), while still allowing investors to monitor the stock rather than dismiss it outright. You can see the complete list of today’s Zacks #1 Rank stocks here.

Its Style Scores are mixed, with an F for Value, A for Growth, B for Momentum and a VGM Score of B. That combination suggests stronger growth and momentum characteristics than valuation support. After the quarter’s wider-than-expected loss and revenue miss, the Zacks Rank can still change as earnings estimate revisions adjust following the results.

Canopy Growth Corporation (TSX:WEED, NYSE:CGC) reported a narrower quarterly loss and double-digit full-year revenue growth on Monday, as the Canadian cannabis company cited the acquisition of MTL Cannabis and a strategic recapitalization as key drivers of its turnaround effort.

The company posted an adjusted loss per share of $0.29 for its fiscal fourth quarter, missing analyst estimates, though the result represented a 71% improvement from the $1.01 loss in the same period a year earlier.

Revenue came in at $51.95 million, up 13.6% from $45.75 million a year ago, but also fell short of expectations.

For the full fiscal year ended March 31, 2026, Canopy said net revenue in its Canada adult-use cannabis segment grew 20%, while Canada medical revenue rose 18%.

The company completed its acquisition of MTL Cannabis during the fiscal year, a deal it said positions Canopy as Canada's leading medical cannabis company by revenue. Canopy also closed a strategic recapitalization in January 2026 that left it with $131.3 million in net cash at fiscal year-end.

CEO Luc Mongeau said the company used the year to reset operations and lay groundwork for expansion, with Europe emerging as a key target market.

"As the leading medical cannabis business in Canada by revenue, we are well positioned to extend that leadership into Europe," Mongeau said, describing the region as representing "enormous long-term opportunity."

Chief Financial Officer Tom Stewart pointed to balance sheet improvements as a risk-reduction measure that also expands the company's strategic options.

Canopy said it expects net revenue growth across the business in fiscal 2027 and projected that improvements in cultivation practices will contribute to meaningful gross margin gains. The company is targeting positive adjusted EBITDA for the fiscal year, though it cautioned that MTL Cannabis integration activities in the first half of the year mean stronger year-over-year improvements are expected in the second half.

The 2026 Cannabis Wildcard: How Tax Reform Could Reset Stock ValuationsCanopy Growth NASDAQ: CGC reported higher fiscal fourth-quarter revenue and said it entered fiscal 2027 with a stronger balance sheet following a year of restructuring, cost cuts and the acquisition of MTL Cannabis.

On the company’s earnings call, Chief Executive Officer Luc Mongeau described fiscal 2026 as “a defining year” for Canopy Growth, saying the company streamlined its operations, reset its cost base and reallocated resources toward areas it sees as offering stronger long-term returns.

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Constellation Brands: A Fallen Star or a Hidden Value Play?“These actions are now beginning to show up in the business,” Mongeau said. He cited full-year net revenue growth of 20% in Canada adult-use cannabis and 18% in Canada medical cannabis, along with what he called improved execution across the company’s platform.

Fourth-quarter revenue rises 10% Chief Financial Officer Tom Stewart said Canopy reported net revenue of CAD 71.2 million in the fourth quarter of fiscal 2026, up 10% from the same quarter a year earlier. Cannabis net revenue was CAD 54.5 million, an increase of 20% year over year.

Profit from the Green Wave: Top Cannabis Stocks to WatchThe company’s Canada medical cannabis business delivered CAD 25.3 million in fourth-quarter revenue, up 27% from a year earlier and marking what Stewart called another record quarter. He said the growth was driven by continued expansion in insured patient registrations and efforts to improve the service experience for medical consumers.

International cannabis revenue was CAD 8.6 million in the quarter, up 68% year over year. Stewart said the increase was largely driven by growth in Poland and Germany, where supply chain improvements helped deliver another quarter of growth.

For the full fiscal year, Mongeau said total net revenue increased 6% to CAD 285 million, driven by growth in the Canadian medical and adult-use businesses. He said Canada medical posted positive year-over-year growth in all four quarters, supported by a larger product assortment and increased order sizes as Canopy expanded its insured customer base.

MTL Cannabis integration begins Mongeau called Canopy’s acquisition of MTL Cannabis the “defining milestone” of the year, saying the transaction established Canopy as the leading Canadian medical cannabis business by revenue. MTL had been part of Canopy for two months at the time of the call.

The company is already executing on CAD 6 million of a targeted CAD 10 million in annualized cost synergies, Mongeau said. Stewart said the savings include the elimination of MTL public company costs, headcount reductions and the rationalization of redundant facilities. Canopy expects to reach its CAD 10 million run-rate savings target within 18 months of the transaction closing.

Stewart said Canopy has decided to close its cultivation facility in Kelowna, British Columbia, as it focuses on scaling cultivation capacity at its GMP-certified Kincardine facility and MTL’s facilities in Quebec.

Mongeau said the benefits of the MTL deal extend beyond cost savings, noting that Canopy is using its distribution platform to expand the reach of MTL products, including a recently announced launch of MTL strains in Germany. He also said MTL’s cultivation capabilities are being shared more broadly across Canopy’s network.

Margins affected by acquisition-related inventory charges Canopy’s cannabis gross margin in the fourth quarter was CAD 3.7 million, or 7% of net revenue. Stewart said the margin was below the company’s typical range primarily because of CAD 10.7 million in inventory-related charges tied to the MTL acquisition.

As part of the integration, Canopy conducted a review of the combined inventory and product portfolio and chose to reduce redundant and overlapping inventory, Stewart said. The company also recognized costs associated with the accounting step-up on acquired inventory balances.

Excluding acquisition-related charges, Stewart said adjusted gross margin for the cannabis segment was 26% in the fourth quarter, compared with 12% in the prior-year period.

The company reported an adjusted EBITDA loss of CAD 6 million in the fourth quarter, a CAD 3 million improvement from the prior year but higher than the CAD 3 million loss in the third quarter. Stewart said that absent the inventory charges, Canopy would have shown sequential improvement and moved “significantly closer” to adjusted EBITDA breakeven.

Stewart said Canopy remains confident in reaching positive adjusted EBITDA during fiscal 2027, citing expectations for continued revenue growth and lower costs.

Balance sheet strengthens after recapitalization Canopy ended fiscal 2026 with CAD 365 million in cash after completing the MTL acquisition. Stewart said total debt stood at CAD 234 million, resulting in a net cash position of CAD 131 million.

Compared with the end of fiscal 2025, Stewart said Canopy improved its financial position by CAD 304 million, moving from net debt of CAD 173 million to net cash of CAD 131 million. He said the company now has greater financial capacity to support growth and potential inorganic opportunities.

Stewart also said Canopy did not make sales under its at-the-market program during the fourth quarter, but may use the program opportunistically in fiscal 2027 to support strategic priorities if they arise.

Fiscal 2027 priorities include Canada, Europe and profitability Looking ahead, Mongeau said Canopy is focused on capital allocation toward higher-return opportunities, cost management and execution. He said the company’s priorities include accelerating growth in Canadian recreational cannabis and Europe while pursuing positive EBITDA and positive cash flow.

In Canada adult-use cannabis, Mongeau said Canopy returned to growth in fiscal 2026 as net revenue increased 20%. He said growth was driven by innovation in categories such as infused pre-rolls, vape and THC flower. He added that May 2026 market share data showed Canopy had improved from the No. 8 overall ranking to No. 6.

Mongeau said the company’s longer-term aspiration is to become a top-three player in Canadian recreational cannabis. He pointed to opportunities in flower, pre-rolls, infused pre-rolls and vape, including the 510 vape category, where he said Canopy is “almost absent.”

In Europe, Mongeau said Canopy had reset operations to improve the flower supply chain, after earlier challenges in fiscal 2026. He said the company delivered strong sequential growth in the last two quarters and expects Europe to remain an important focus. Canopy is targeting expansion into the U.K. during fiscal 2027.

Storz & Bickel revenue declined for the year due to challenges in the U.S. and Germany, Mongeau said. He noted that the launch of the VEAZY vaporizer helped sales in a new category focused on affordability and portability. The company is now focused on cost optimization and a refreshed commercial approach in the U.S.

During the question-and-answer portion of the call, analysts asked about changes to Veterans Affairs Canada reimbursement, U.S. regulatory developments and Canopy’s cash balance. Stewart said reimbursement changes are expected to be a headwind for the Canadian medical business, but Canopy is taking pricing, product mix and retention actions intended to mitigate the effect on revenue, margin and adjusted EBITDA.

On the U.S., Mongeau said Canopy’s near-term focus remains Canada and international markets, where he said the company can create value more immediately. Still, he said Canopy is encouraged by U.S. regulatory changes and believes its investments, including Jetty, its affiliation with the Claybourne infused pre-roll brand and its investment in TerrAscend, position it to benefit as regulations evolve.

About Canopy Growth NASDAQ: CGCCanopy Growth Corporation is a leading Canadian cannabis company engaged in the production, distribution and sale of both medical and recreational cannabis products. Headquartered in Smiths Falls, Ontario, the company cultivates a diversified portfolio of offerings that includes dried flower, pre-rolled joints, oils, softgel capsules and edibles. Canopy Growth also markets derivative products such as beverages and wellness formulations under a range of brands, aiming to serve both patient and adult-use markets.

The company operates through multiple subsidiaries, including Tweed Inc, Spectrum Therapeutics and Tokyo Smoke, each targeting distinct consumer segments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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SMITHS FALLS, Ontario--(BUSINESS WIRE)--Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (Nasdaq: CGC) today announced its financial results for the three months ended March 31, 2026 ("Q4 FY2026") and the fiscal year ended March 31, 2026 ("FY2026"). All financial information in this press release is reported in Canadian dollars, unless otherwise indicated. “In fiscal 2026, we reset the business, laid a disciplined foundation, and made deliberate investments, including ac.

After years of restructuring, dilution, asset sales, and losses, investors remain sharply divided on whether Canopy Growth Corporation (CGC 0.49%) is finally stabilizing or simply extending a long decline.

Indeed, the next 12 months will likely provide an answer to that question.

Here are three realistic scenarios for where Canopy Growth stock could go next.

Image source: Getty Images.

Scenario 1: Canopy finally stabilizes This is the bullish case. Canopy has spent the past several years cutting costs, restructuring operations, and narrowing losses. In fiscal Q3 2026 (ended Dec. 31), the company reported revenue of $75 million Canadian dollars ($55 million) while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) losses narrowed to about CA$3 million, marking its third consecutive quarter of improvement.

This isn't trivial because profitability has always been the central issue surrounding Canopy Growth.

The company also ended September 2025 with about CA$298 million in cash and cash equivalents, exceeding debt balances by roughly CA$70 million after making $50 million in debt prepayments.

Operationally, Canopy is finally showing pockets of growth again. Canada adult-use cannabis revenue increased 8% year over year in Q3, while medical cannabis revenue rose 15%. Management now believes the company can achieve positive adjusted EBITDA during fiscal 2027.

If Canopy can sustain revenue growth while maintaining cost discipline, investors may begin treating the company less like a distressed cannabis operator and more like a turnaround story.

Of course, that would require continued margin improvement, stable Canadian cannabis pricing, and stronger cash flow trends.

Under that scenario, the stock could recover meaningfully from current depressed levels.

Scenario 2: The company survives, but the stock goes nowhere This may be the most realistic outcome. Despite operational improvements, Canopy still faces structural problems that haven't disappeared.

The Canadian cannabis market remains oversupplied and intensely competitive. Pricing pressure continues to hurt margins across the industry, while regulatory delays limit meaningful U.S. expansion opportunities.

Meanwhile, Wall Street analysts still expect Canopy Growth to remain unprofitable for the foreseeable future, with some forecasts projecting only modest or little changed revenue growth over the next fiscal year.

That creates a difficult setup for shareholders. Canopy may ultimately survive financially without necessarily generating the type of earnings growth needed to justify a sustained stock rally.

This scenario would likely involve periodic dilution, continued restructuring, slow revenue growth, and ongoing volatility tied to cannabis legalization developments.

In other words, the company survives, but shareholders are stuck with dead money.

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Scenario 3: Another major breakdown This is the bearish case. Canopy has already undergone multiple restructurings, but the company still operates in an industry with weak pricing power, limited profitability, and uncertain regulation.

If Canadian cannabis pricing deteriorates further or consumer demand weakens, Canopy could quickly find itself back under financial pressure despite recent balance-sheet improvements. The company has still reported significant losses in fiscal 2026, including a Q3 net loss of about CA$63 million.

The cannabis sector also remains heavily dependent on investor sentiment. If broader market conditions weaken or capital becomes more expensive again, speculative cannabis stocks, many of which are still in prominent marijuana exchange-traded funds (ETFs), could face another major sell-off similar to previous industry downturns.

There's also execution risk. Canopy continues betting heavily on product innovation, premium brands, medical cannabis expansion, and international markets. But international cannabis sales actually declined sharply during parts of fiscal 2026 because of European supply chain problems.

If those operational challenges persist while revenue growth stalls, the market could begin to question whether the turnaround is truly sustainable.

The bottom line is simple: Canopy Growth long ago stopped being the hypergrowth marijuana stock story. Today, it's a restructuring and survival story.

The company has improved its balance sheet, narrowed losses, and stabilized parts of its business. But profitability remains elusive, the cannabis industry is saturated, and investor confidence remains fragile.

SMITHS FALLS, Ontario--(BUSINESS WIRE)--Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (Nasdaq: CGC) expects to release its financial results for the quarter and fiscal year ended March 31, 2026 before financial markets open on June 15, 2026. The Company also announced it plans to file restated financial results for the fiscal years ended March 31, 2025 and March 31, 2024 and to certain of the interim periods therein (the “Refiling”), in conjunction with its filing of.

Canopy Growth Corporation (CGC - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this company have returned -13.2% over the past month versus the Zacks S&P 500 composite's +3.3% change. The Zacks Medical - Products industry, to which Canopy Growth belongs, has lost 11.1% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Canopy Growth is expected to post a loss of $0.06 per share, indicating a change of +93.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The consensus earnings estimate of -$0.36 for the current fiscal year indicates a year-over-year change of +87.9%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $0.11 indicates a change of +69.4% from what Canopy Growth is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Canopy Growth.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Canopy Growth, the consensus sales estimate for the current quarter of $53.26 million indicates a year-over-year change of +17.6%. For the current and next fiscal years, $210.58 million and $278.96 million estimates indicate +8.9% and +32.5% changes, respectively.

Last Reported Results and Surprise HistoryCanopy Growth reported revenues of $53.47 million in the last reported quarter, representing a year-over-year change of +0.1%. EPS of -$0.1 for the same period compares with -$0.76 a year ago.

Compared to the Zacks Consensus Estimate of $50.59 million, the reported revenues represent a surprise of +5.7%. The EPS surprise was -233.33%.

Over the last four quarters, Canopy Growth surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Canopy Growth is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Canopy Growth. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Key Takeaways Canopy Growth posted 8% adult-use sales growth and 15% medical cannabis revenue growth in Q3.CGC expects MTL Cannabis acquisition to improve margins and expand medical cannabis reach.Canopy Growth targets positive adjusted EBITDA in fiscal 2027 amid pricing and tariff headwinds. Canopy Growth Corporation (CGC - Free Report) is back in focus as marijuana reclassification efforts revive investor interest in cannabis stocks. While the regulatory shift has improved sentiment across the sector, investors are increasingly separating companies with improving fundamentals from those still struggling to establish a sustainable business model.

CGC has recently taken steps to strengthen its operations through cost cuts, balance-sheet improvements and the acquisition of MTL Cannabis. However, persistent margin pressure and execution risks continue to cloud the company’s long-term outlook.

Let’s take a closer look at the company’s fundamentals to determine whether the stock deserves a place in investors’ portfolios following the marijuana reclassification push.

CGC Strengthens Medical Cannabis Push Amid Turnaround EffortsCanopy Growth is increasingly leaning on its Canadian medical cannabis franchise and product innovation strategy as it works toward a sustainable turnaround. The company’s latest quarterly performance highlighted improving traction in core cannabis operations, supported by stronger patient demand and continued momentum in select adult-use categories.

During the third quarter of fiscal 2026 (year ending March 2026), Canadian adult-use cannabis sales increased 8% year over year, benefiting from demand for infused pre-rolls and vape products across brands like Tweed, Claybourne and 7ACRES. On the medical side, revenues advanced 15%, aided by growth in insured patient registrations, higher order volumes and ongoing improvements in fulfillment and service levels.

Canopy has also expanded its medical cannabis portfolio through its Spectrum Therapeutics division by launching new 30- and 90-pack softgels and additional dosing formats. This reflects the company’s broader effort to deepen patient engagement and strengthen recurring medical revenue streams.

Beyond organic growth, the recently completed MTL Cannabis acquisition could further strengthen Canopy’s position in medical cannabis while improving cultivation efficiency and product quality. Management expects the deal to support margin expansion, provide access to premium flower supply and enhance the company’s ability to serve international markets, particularly Europe.

The company is also working to stabilize its international cannabis operations after prior supply-chain disruptions affected European sales. Management noted that improving flower availability, expanding strain selection and ongoing EU GMP progress at its Smiths Falls facility are expected to support sequential improvement through fiscal 2027.

At the same time, challenges remain. Cannabis gross margins declined year over year due to a weaker international mix and pricing pressures, while Storz & Bickel continues to face macroeconomic and tariff-related headwinds despite recent product launches. Canopy also continues to navigate reimbursement-related uncertainty in the Canadian medical market.

Still, management remains focused on cost discipline and expects the company to achieve positive adjusted EBITDA at some point during fiscal 2027.

Cutthroat Competition in the Cannabis SpaceCanopy Growth competes in an overcrowded market against large operators like Aurora Cannabis (ACB - Free Report) and SNDL Inc. (SNDL - Free Report) . Like CGC, these companies maintain a sizable presence in the Canadian cannabis market.

Aurora has increasingly prioritized higher-margin international medical cannabis markets, particularly Europe, while SNDL continues to expand its vertically integrated cannabis and retail operations through acquisitions and broad product offerings. These strategies are intensifying competition across key growth categories, including medical cannabis, vapes and premium flower.

As cannabis operators continue to pursue profitability and international expansion, Canopy will likely need to sustain product innovation, improve margins and successfully integrate MTL Cannabis to strengthen its competitive positioning.

CGC Stock Performance and EstimatesYear to date, shares of Canopy Growth have lost 6% compared with the industry’s 23% decline.

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Bottom-line estimates for fiscal 2026 and 2027 have remained stable in the past 60 days.

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How to Play CGC Stock?While marijuana reclassification efforts have improved sentiment toward cannabis stocks, Canopy Growth Corporation continues to face profitability and execution challenges despite recent operational improvements.

Investors should note that marijuana reclassification is still evolving gradually rather than through a sweeping federal transformation. Even if reforms progress, several restrictions surrounding U.S. cannabis businesses are likely to remain in place.

We would also like to remind investors that Canopy Growth does not directly operate cannabis businesses in the United States due to federal restrictions and exchange-listing considerations. The company maintains strategic exposure to the market through Canopy USA, which holds interests in Acreage Holdings, Wana Brands and Jetty.

Although CGC is targeting positive adjusted EBITDA in fiscal 2027, persistent margin pressure, reimbursement uncertainty and intense competition remain key risks. Given these factors, investors may want to hold off on initiating or adding to positions until Canopy Growth reports its fiscal fourth-quarter results. A cautious approach toward this Zacks Rank #3 (Hold) stock remains warranted.

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