Track market-moving stories before they get noisy

Posted by Defense World Staff on Jul 21st, 2026

California Public Employees Retirement System decreased its stake in Constellation Brands Inc (NYSE:STZ – Free Report) by 7.9% in the first quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 323,015 shares of the company’s stock after selling 27,814 shares during the quarter. California Public Employees Retirement System owned about 0.19% of Constellation Brands worth $48,452,000 at the end of the most recent reporting period.

Other large investors have also recently modified their holdings of the company. Choreo LLC increased its position in Constellation Brands by 2.1% during the fourth quarter. Choreo LLC now owns 3,116 shares of the company’s stock valued at $437,000 after acquiring an additional 63 shares during the last quarter. HM Payson & Co. raised its stake in shares of Constellation Brands by 10.0% in the fourth quarter. HM Payson & Co. now owns 701 shares of the company’s stock valued at $97,000 after acquiring an additional 64 shares during the period. Clearstead Trust LLC lifted its holdings in shares of Constellation Brands by 14.2% in the 4th quarter. Clearstead Trust LLC now owns 548 shares of the company’s stock worth $76,000 after acquiring an additional 68 shares during the last quarter. Johnson Financial Group Inc. lifted its holdings in shares of Constellation Brands by 24.9% in the 4th quarter. Johnson Financial Group Inc. now owns 346 shares of the company’s stock worth $48,000 after acquiring an additional 69 shares during the last quarter. Finally, HB Wealth Management LLC boosted its stake in shares of Constellation Brands by 0.7% during the 1st quarter. HB Wealth Management LLC now owns 10,795 shares of the company’s stock worth $1,619,000 after purchasing an additional 72 shares during the period. Institutional investors own 77.34% of the company’s stock.

Insiders Place Their Bets In related news, EVP James O. Bourdeau sold 4,407 shares of the company’s stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total transaction of $631,258.68. Following the transaction, the executive vice president directly owned 9,109 shares of the company’s stock, valued at $1,304,773.16. This represents a 32.61% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 12.20% of the stock is currently owned by company insiders.

Constellation Brands Trading Up 1.2% STZ opened at $134.41 on Tuesday. The company has a current ratio of 0.91, a quick ratio of 0.48 and a debt-to-equity ratio of 1.06. The firm has a market cap of $22.95 billion, a price-to-earnings ratio of 12.83, a PEG ratio of 4.14 and a beta of 0.39. Constellation Brands Inc has a 12 month low of $126.45 and a 12 month high of $178.13. The stock has a fifty day moving average price of $140.34 and a 200-day moving average price of $149.53.

Constellation Brands (NYSE:STZ – Get Free Report) last posted its quarterly earnings data on Tuesday, June 30th. The company reported $3.43 EPS for the quarter, missing the consensus estimate of $3.70 by ($0.27). The firm had revenue of $2.43 billion for the quarter, compared to the consensus estimate of $2.39 billion. Constellation Brands had a return on equity of 25.58% and a net margin of 18.87%.The company’s revenue was down 3.3% compared to the same quarter last year. During the same quarter last year, the firm earned $3.22 EPS. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. As a group, equities research analysts anticipate that Constellation Brands Inc will post 11.82 earnings per share for the current fiscal year.

Constellation Brands Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 13th. Investors of record on Thursday, July 30th will be paid a dividend of $1.03 per share. This represents a $4.12 annualized dividend and a yield of 3.1%. The ex-dividend date is Thursday, July 30th. Constellation Brands’s payout ratio is 39.31%.

Wall Street Analysts Forecast Growth STZ has been the topic of a number of analyst reports. JPMorgan Chase & Co. cut their target price on Constellation Brands from $169.00 to $165.00 and set a “neutral” rating on the stock in a research note on Thursday, July 2nd. Deutsche Bank Aktiengesellschaft decreased their price target on Constellation Brands from $155.00 to $150.00 and set a “hold” rating for the company in a research note on Thursday, July 2nd. Roth Capital restated a “buy” rating and set a $209.00 price objective on shares of Constellation Brands in a report on Thursday, July 2nd. UBS Group cut their price objective on Constellation Brands from $186.00 to $175.00 and set a “buy” rating on the stock in a research report on Wednesday, June 17th. Finally, Bank of America reduced their target price on Constellation Brands from $152.00 to $145.00 and set an “underperform” rating on the stock in a research note on Thursday, July 2nd. Eleven equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Constellation Brands presently has an average rating of “Hold” and an average price target of $167.89.

Get Our Latest Analysis on STZ

Constellation Brands Company Profile (Free Report)

Constellation Brands, Inc is a leading producer and marketer of beer, wine and spirits, with operations spanning production, importation, marketing and distribution. The company’s beverage portfolio includes a range of premium and mainstream wines and spirits alongside major imported beer brands; in the U.S. market Constellation is widely known for its role in bringing Mexican imports such as Corona and Modelo to American consumers. Constellation supplies retail, on‑premise and foodservice channels and supports its brands with national sales and marketing platforms and supply‑chain capabilities.

The company traces its roots to the Canandaigua Wine Company, founded by Marvin Sands in 1945, and evolved through organic growth and acquisition into a diversified beverage company.

Read More Five stocks we like better than Constellation Brands The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding STZ? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Constellation Brands Inc (NYSE:STZ – Free Report).

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Key Takeaways Constellation Brands is leveraging premium labels and innovation to drive long-term growth.STZ continues to invest in its beer, wine and spirits brands to expand market share.STZ is focusing on premiumization and cost savings to strengthen margins and profitability. Constellation Brands, Inc. (STZ - Free Report) maintains a solid foothold in the beer, wine and spirits market, driven by its focus on premiumization, a strong lineup of brands and prudent portfolio management. Its portfolio comprises a broad array of consumer-centric, premium labels, such as Modelo Especial, Corona Extra, Pacifico, Robert Mondavi Winery, Kim Crawford, The Prisoner Wine Company and High West. Leveraging the strength of these brands, the company remains well-positioned to meet evolving consumer tastes and benefit from growth opportunities in the global beverage industry.

Constellation Brands is focused on building a portfolio centered on high-margin, fast-growing segments within the beverage alcohol industry, supported by its direct-to-consumer capabilities and expanding global footprint. Its flagship beer brands — Modelo, Corona and Pacifico — remain key growth engines, strengthening the company’s position in the U.S. beer market. Constellation Brands continues to invest in its Power Brands through product innovation and by capitalizing on evolving consumer preferences with successful new offerings.

The company has increasingly aligned its strategy around its core, high-growth premium brands across the beer, wine and spirits categories. This approach is aimed at expanding market share, enhancing margins and supporting sustainable long-term growth. Constellation Brands’ ongoing brand-building initiatives, coupled with the strong performance of its beer business, continued premiumization efforts, product innovation and cost-saving measures, remain key positives.

In a nutshell, the company’s strategy is its focus on core premium brands, which enables it to benefit from premiumization trends, boost profitability and solidify its leadership in the beverage alcohol space. Sustained consumer demand for premium beverages is likely to remain an important catalyst for Constellation Brands’ long-term growth.

STZ’s Price Performance, Valuation & EstimatesShares of Constellation Brands have lost 4% in the past six months compared with the industry’s growth of 11.3%.

Image Source: Zacks Investment Research

From a valuation standpoint, STZ trades at a forward price-to-earnings ratio of 11.11X compared with the industry’s average of 14.92X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for STZ’s fiscal 2027 earnings per share (EPS) remains breakeven while that of fiscal 2028 indicates year-over-year growth of 3.4%. The company’s EPS estimate for fiscal 2027 and fiscal 2028 has moved south in the past seven days.

Image Source: Zacks Investment Research

Constellation Brands stock currently carries a Zacks Rank #3 (Hold).

Stocks to Consider in the Consumer Staples SpaceThe Chefs' Warehouse, Inc. (CHEF - Free Report) , which is a distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Chefs' Warehouse's current financial-year sales indicates growth of 8.3% from the prior-year level. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.

Nomad Foods Limited (NOMD - Free Report) , which manufactures and distributes frozen foods, currently carries a Zacks Rank #2 (Buy).

The consensus estimate for Nomad Foods’ current financial-year sales is expected to rise 0.5% from the year-ago reported figure. NOMD delivered a trailing four-quarter earnings surprise of 8.6%, on average.

Medifast, Inc. (MED - Free Report) , which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED delivered an average earnings surprise of 65.5% in the last reported quarter.

The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 26% from the year-ago number.

Key Takeaways STZ's beer segment drove Q1 fiscal 2027 results, contributing 93.8% of consolidated net sales.Constellation Brands is investing in brewery capacity to support long-term beer growth.STZ expects fiscal 2027 beer net sales to range from a 1% decline to a 1% increase. Constellation Brands (STZ - Free Report) remains a beer-led investment story, with its outlook tied to how well its imported portfolio offsets uneven demand.

Premium beer brands continue to provide scale and pricing power. Still, weak Wine and Spirits results, tariff pressure and cautious fiscal 2027 guidance keep the stock balanced.

Beer Remains the Core Growth DriverBeer accounted for about 93.8% of consolidated net sales in the first quarter of fiscal 2027, underscoring how central this segment is to Constellation’s earnings base. Beer net sales rose 2% to $2.28 billion, helped by shipment volume growth and pricing gains.

Shipments increased 1.8%, while depletions slipped just 0.3% despite a volatile consumer backdrop. Modelo Especial and Corona Extra were soft, but Pacifico, Victoria and Modelo Chelada brands posted gains. That mix matters as management works to rebuild relevance for scaled names.

Capacity spending also keeps the beer outlook in focus. The company is investing in brewery projects at Nava, Obregón and Veracruz to support future demand and improve operating flexibility. Beer capital expenditures were $164.3 million in the quarter.

Anheuser-Busch InBev (BUD - Free Report) , the world’s largest brewer, remains a useful comparison for investors watching premium beer demand and brand execution. Molson Coors Beverage Company (TAP - Free Report) also offers context as value, pack architecture and category traffic remain competitive variables.

Wine and Spirits Reset Still WeighsConstellation’s Wine and Spirits business remains the main drag. First-quarter segment net sales fell 47% year over year to $149.2 million, mainly because $142 million of sales from divested assets were no longer included after the 2025 Wine Divestitures.

The smaller portfolio showed better underlying movement. Organic net sales rose 8%, organic shipments increased 7.7% and depletions grew 6.6%. Gains for brands such as Kim Crawford and Mi CAMPO Tequila suggest that the higher-end portfolio still has consumer appeal, but profitability is still under repair.

The segment reported a comparable operating loss of $1.1 million in the quarter. Tariffs, retaliatory tariffs and actions in certain international markets also pressured branded wine and spirits shipment volume.

Margins, Cash Flow and Guidance Set the Near-Term ToneConstellation’s first-quarter comparable earnings of $3.43 per share rose 7% year over year and topped the Zacks Consensus Estimate of $3.22. Net sales declined 3% to $2.433 billion but exceeded the consensus mark of $2.404 billion.

Beer operating income increased 2% to $891.4 million, but beer operating margin was nearly flat at 39.0%. Pricing, fixed cost absorption and savings helped, while higher materials costs, aluminum tariffs, product mix and marketing spending limited expansion.

Operating cash flow was $661.8 million in the first quarter. Management still expects fiscal 2027 operating cash flow of $2.4-$2.5 billion and free cash flow of $1.6-$1.7 billion.

Still, the outlook is cautious. Constellation projects enterprise organic net sales and beer net sales between a 1% decline and a 1% increase in fiscal 2027. That range reflects limited visibility as consumers respond to inflation, fuel prices and tighter discretionary income.

Image Source: Zacks Investment Research

Bottom Line for STZ InvestorsConstellation’s stock outlook depends on beer execution. The segment has the brands, pricing and capacity investment to support the long-term case, but demand remains uneven and the Wine and Spirits reset is not yet contributing enough to change the broader tone.

STZ currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It has a Value Score of B, Growth Score of C, Momentum Score of B and VGM Score of B. The Style Scores point to favorable value and momentum characteristics, while the VGM Score suggests a reasonably balanced style profile. However, the Zacks Rank remains the primary stock-selection signal because it reflects earnings estimate revisions. A Zacks Rank #4 indicates a more cautious earnings-revision setup, even when some Style Scores are favorable.

Key Takeaways STZ's beer business continued to drive results with higher sales, pricing gains and resilient shipment growth.Constellation Brands generated strong cash flow while continuing share repurchases and dividend payments. STZ expects fiscal 2027 enterprise organic net sales to range from a 1% decline to a 1% increase. Constellation Brands (STZ - Free Report) sits at the center of two important alcohol trends. Beer demand is still carrying the business, while wine and spirits remain in reset mode after portfolio actions.

The question for investors is whether premium brands and cost savings can offset uneven consumer spending, tariffs and higher marketing needs. The latest numbers show both resilience and pressure.

Beer Demand Remains the Main SignalBeer remains the clearest source of operating strength for Constellation Brands. In first-quarter fiscal 2027, beer net sales increased 2% to $2.28 billion, supported by $40.7 million of shipment volume growth and $17.6 million of pricing gains. Shipments rose 1.8%, while depletions slipped 0.3% in a volatile consumer backdrop.

The brand mix still matters. Modelo Especial and Corona Extra faced declines, but Pacifico, Victoria and Modelo Chelada delivered gains that helped support the portfolio. Management continues to emphasize consumer insights, occasion-based marketing and disciplined investment as it works to keep scaled brands relevant.

Anheuser-Busch InBev SA/NV (BUD - Free Report) provides a useful beer benchmark because it also competes through a broad global portfolio and event-driven marketing. Its presence highlights how large brewers are pushing premium, non-alcoholic and occasion-led offerings to defend share.

Margins Reflect Relief and New Cost PressuresConstellation Brands’ margin story is not one-dimensional. Consolidated gross profit as a percentage of net sales rose to 54.3% in the first quarter from 50.4% a year earlier. Comparable operating income increased to $834.2 million from $809.9 million.

Beer operating margin was 39.0%, nearly flat with 39.1% in the prior-year period. Fixed cost absorption and pricing helped, but higher materials costs, tariffs, unfavorable product mix and marketing spending limited expansion. Tariffs tied largely to aluminum imports totaled $13.0 million, and marketing as a percentage of beer net sales is expected to rise above 10% in the second and third quarters to support major sports activations.

Wine and Spirits Remain a DragThe Wine and Spirits segment shows why Constellation’s alcohol exposure is still uneven. Segment net sales fell 47% year over year to $149.2 million in the first quarter, mainly because $142 million of sales from the 2025 Wine Divestitures were no longer in the business.

The organic view was better, with wine and spirits organic net sales up 8%, organic shipments up 7.7% and depletions up 6.6%. Still, the segment reported a comparable operating loss of $1.1 million, and fiscal 2027 organic net sales are expected to range from down 1% to up 1%. Diageo plc (DEO - Free Report) , with its large spirits, beer and wine portfolio, remains a relevant peer for investors tracking premiumization and pressure across global beverage alcohol.

Cash Flow and Capital Returns Add SupportConstellation Brands continues to generate cash while funding brand investment, brewery projects and capital returns. Net cash provided by operating activities was $661.8 million in the first quarter, compared with $637.2 million in the prior-year period.

The company repurchased 1.5 million Class A shares for $223.8 million during the quarter and another 714,387 shares for $100 million after quarter end. As of June 26, 2026, $2.75 billion remained available for future repurchases. The board also declared a quarterly dividend of $1.03 per Class A share.

What Should Investors do With STZ Now?The bottom line is that STZ is tracking the right alcohol themes in premium beer, non-alcohol offerings and portfolio reshaping, but the near-term setup is constrained by soft consumer demand and margin pressure. Fiscal 2027 guidance still calls for enterprise organic net sales growth in a range of down 1% to up 1%, underscoring limited visibility.

Image Source: Zacks Investment Research

STZ currently carries a Zacks Rank #4 (Sell). That rank signals pressure from earnings estimate trends, so investors may want to be selective despite the company’s brand strength and cash generation.

The stock has a Value Score of B, Growth Score of C, Momentum Score of B and VGM Score of B. The B grades show favorable value and momentum characteristics, but Style Scores are designed to complement the Zacks Rank, not override it. For now, STZ looks like a stock with solid assets but a cautious earnings setup.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CNBC's Jim Cramer discusses the day's market action, the stocks he's watching and more.

6.7.2026 19:12, MSFT, AMD, AAPL, ORLY, GPC, AVGO

Americké akciové indexy se po prodlouženém víkendu, kdy ještě doznívají sváteční konfety, pohybují v kladném teritoriu v čele s technologickým Nasdaqem, který přidává bezmála 1,3 %, širší index S&P500 pak posiluje o 0,7 %. Kosmetický zisk 0,05 % si připisuje též tradiční index Dow Jones.

K růstu se po korekci v minulém týdnu vrátily polovodiče. Referenční Philadelphia SE Semiconductor index zpevňuje téměř o 4 % a sektor informačních technologií jednoznačně dominuje dnešnímu odvětvovému růstu v rámci S&P500 se ziskem 2 %. Jim sekundují komunikační služby (+0,9 %). Naopak sektor zbytných statků, zdravotnictví a utilit vykazuje více než 1% ztrátu.

Po sérii nových historických maxim z prvního pololetí přijde již brzy další test robustnosti trhu v podobě výsledkové sezony. Zejména volatilní polovodičový sektor v poslední době ukazuje, že prostor pro zklamání je omezený. Reportovací období pomyslně odstartují příští úterý přední americké banky.

Smíšeným vývojem dnes prochází dluhopisy. Zatímco kratší maturity lehce zpevňují, delší splatnosti naopak mírně ztrácí. Výnos 10letého vládního bondu se drží těsně nad hladinou 4,48 %. Drahé kovy vykazují ztráty. Zlato odepisuje 0,6 % na 4152 USD/oz, stříbro oslabuje o 1 % na 61,8 USD/oz.

V energetickém sektoru se nedaří ropě, která se obchoduje slabší o 0,6 % na 68,3 USD/barel, zemní plyn naopak přidává 0,9 % na 3,23 USD/mmbtu.

Na korporátní úrovni S&P500 konstituentů si nejlepší výsledek připisují akcie výrobce procesorů a AI akcelerátorů, spol. AMD (AMD +7,9 %) po zvýšeném cíli od Goldman Sachs na 640 z předchozích 450 USD při trvajícím poptávkovém momentu v oblasti AI. Nejhorší výsledek pak registruje prodejce náhradních autodílů, spol. O’Reilly (ORLY -7,2 %) po zprávách o akvizičním zájmu převzít konkurenta NAPA Auto Parts, divize spol. Genuine Parts (GPC), při hotovostní nabídce za více než 10 mld. USD. Nedaří se ani dalšímu z prodejců auto komponent, spol. Autozone (AZO -6,1 %). 

Z dalších zajímavých korporátních zpráv pak doplňme oznámení Microsoftu (MSFT -1,2 %) o propuštění 4800 zaměstnanců (2,1 % pracovníků). V polovodičovém segmentu potěšil investory Broadcom (AVGO +4,2 %) po prodloužení obchodní spolupráce s Applem (AAPL) do roku 2031.

Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +1,9 % Zbytná spotřeba -1,5 % Sektor komunikací +1 % Zdravotní péče -1,3 % Nezbytná spotřeba +0,8 % Utility -1,2 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Advanced Micro Devices (AMD) +7,9 % O'Reilly Automotive (ORLY) -7,2 % Arista Networks (ANET) +7,7 % AutoZone (AZO) -6,1 % VERTIV HLD A O (VRT) +6,7 % Constellation Brands (STZ) -5,7 % Tesla (TSLA) +6,3 % Tractor Supply (TSCO) -4,9 % QUALCOMM (QCOM) +6,3 % BUILDR FIRST O (BLDR) -4,4 % Zdroj: Reuters

David Lamač, Fio banka, a.s.

6.7.2026 15:50

Index Dow Jones -0,1 % na 52848,66 b. S&P 500 +0,44 % na 7516,13 b. Nasdaq Composite +0,91 % na 26067,65 b.

Obchodní den po prodlouženém víkendu začíná smíšeně. Index Dow Jones kosmeticky ztrácí, povedlo se mu ale po otevření poprvé překonat 53000 b. Tahounem indexu s růstem nad 2 % je Caterpillar (2,55 %) a Goldmman Sachs Group (2,41 %).

Z indexu S&P 500 posilují zejména informační technologie, kterých růst se propisuje i do indexu Nasdaq. Nejslabším sektorem je zdravotnictví. Pfizer ztrácí 2,06 %, Eli Lilly odepisuje 1,16 % a Johnson & Johnson klesá o 1,81 %.

Z technologií dnes opět rostou čipové společnosti. Broadcom a AMD posilují o víc, než 6 %, Nvidia se obchoduje na kladné nule.

Microsoft (-1,65 %) se chystá na další vlnu propouštění, která tentokrát zasáhne divize prodeje a Xbox. Celkem se má společnost zeštíhlit o přibližně 2 % pracovní síly, tedy 4 800 míst. Společnost se snaží o zefektivnění nákladů a tlačí na zvyšování efektivity všech divizí. Microsoft zvažuje i změnu struktury herní divize s možným prodejem několika studií.

OPEC o víkendu oznámil záměr zvýšit těžbu černého zlata. V srpnu by se měl objem navýšit o 188 tis barelů denně. Futures kontrakty na WTI reagují mírným poklesem. Aktuálně se barel obchoduje pod USD 69.

Index S&P 500 +0,44 % na 7516,13 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +1,6 % Zdravotní péče -1,8 % Průmysl +1,2 % Nezbytná spotřeba -0,8 % Finanční sektor +0,2 % Reality -0,6 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Western Digital Corp (WDC) +9,0 % O'Reilly Automotive (ORLY) -5,2 % Advanced Micro Devices (AMD) +7,5 % AutoZone (AZO) -4,7 % Vertiv Holdings (VRT) +7,4 % Constellation Brands (STZ) -3,8 % Teradyne (TER) +7,1 % SBA Communications Corp (SBAC) -3,7 % GE Vernova (GEV) +6,5 % Genuine Parts (GPC) -3,6 %
Marek Kameništiak
Fio banka, a.s.
Prohlášení

Key Takeaways Constellation Brands beat Q1 earnings and revenue estimates despite lower reported sales.Beer sales rose 2% y/y to $2.284B, led by higher shipments and pricing despite softer depletions.Wine and Spirits organic sales grew 8%, while cash flow supported dividends and buybacks. Constellation Brands, Inc. (STZ - Free Report) delivered a solid first-quarter fiscal 2027 performance, surpassing earnings and revenue expectations despite lower reported sales following last year's wine divestitures. Growth continued to be led by the Beer business, while the streamlined Wine and Spirits portfolio showed encouraging organic momentum. Higher profitability, disciplined pricing, healthy cash generation and continued market-share gains underscored the quarter, although softer beer depletions for flagship brands and a cautious consumer backdrop remain areas to monitor.

Constellation Brands continues to execute against its long-term strategy by focusing on premium beer, optimizing its Wine and Spirits portfolio and maintaining disciplined capital allocation. A closer evaluation of the company's financial and operating metrics provides deeper insight into the quality of its earnings and future growth trajectory. (Read more: Constellation Brands' Q1 Earnings Beat, Sales Top on Beer Strength)

STZ's Q1 Key Financial Metrics DiscussionThe Beer business once again remained the primary growth engine during the quarter. Net sales increased 2% year over year to $2.28 billion, beating the Zacks Consensus Estimate of $2.27 billion, driven by a 1.8% rise in shipment volumes and favorable pricing. Beer operating income also grew 2% to $891.4 million, surpassing the Zacks Consensus Estimate of $878 million. However, the operating margin remained nearly flat at 39% as higher marketing investments and an unfavorable sales mix offset pricing benefits. Despite a modest 0.3% decline in depletions, Constellation Brands continued to outperform the broader U.S. beer industry, ranking as the top dollar-share gainer across Circana-tracked channels. Pacifico and Victoria delivered particularly strong depletion growth, helping offset softer trends in Modelo Especial and Corona Extra.

The Wine and Spirits segment continued to reflect the impact of the 2025 divestitures, with reported net sales declining 47% year over year to $149.2 million, but beating the Zacks Consensus Estimate of $142 million. However, the underlying business showed meaningful improvement. Organic net sales increased 8%, supported by 7.7% organic shipment growth and 6.6% depletion growth. Brands such as Kim Crawford and Mi CAMPO Tequila continued to perform well, enabling the portfolio to outperform the broader wine and spirits category in both dollar and volume sales. The segment also reported an operating loss of $1.1 million, narrower than both the year-ago loss of $6 million and the Zacks Consensus Estimate for a loss of $1.37 million, as improved volumes and lower operating expenses partly offset the effect of the divestitures.

Profitability strengthened across the enterprise. Comparable operating income increased 6% year over year, while reported operating income climbed 18%, reflecting improved gross margins, lower impairment-related charges and disciplined expense management. The company generated operating cash flow of $662 million and free cash flow of $485 million during the quarter, allowing it to return more than $400 million to shareholders through dividends and share repurchases while continuing to invest in brewery expansion projects.

Constellation Brands also reaffirmed confidence in its financial outlook by raising its fiscal 2027 reported EPS guidance while maintaining its comparable EPS, operating cash flow and free cash flow targets. Although management still expects a relatively modest sales environment, continued pricing discipline, premium brand strength, market-share gains and strong cash generation position the company well to deliver stable earnings growth through fiscal 2027.

Shares of this Zacks Rank #3 (Hold) company have lost 4% in the past six months against the industry’s growth of 12%.

STZ Stock's 6-Month Price Performance
Image Source: Zacks Investment Research

Stocks to ConsiderARKO Corp. (ARKO - Free Report) operates a chain of convenience stores in the United States. ARKO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ARKO's current fiscal-year sales implies a decline of 2.8%, while the same for current fiscal-year earnings implies growth of 93.3% from the year-ago reported figures. ARKO delivered a trailing four-quarter earnings surprise of 43.2%, on average.

Fomento Economico Mexicano (FMX - Free Report) is a leading multinational consumer company with operations spanning proximity retail, fuel, health, digital financial services, logistics and distribution, while also holding a controlling stake in Coca-Cola FEMSA, the world's largest Coca-Cola franchise bottler. The company presently flaunts a Zacks Rank #1.

FMX delivered a trailing four-quarter negative earnings surprise of 17%, on average. The Zacks Consensus Estimate for FMX’s current financial-year sales and EPS indicates growth of 17.3% and 130.9%, respectively, from the year-ago reported numbers.

The Coca-Cola Company (KO - Free Report) is a global beverage giant with a portfolio of more than 4,700 beverage products (and more than 500 brands), ranging from sodas (or sparkling beverages) to energy drinks. KO currently carries a Zacks Rank #2 (Buy).

 The Zacks Consensus Estimate for Coca-Cola’s 2026 sales and earnings indicates growth of 3% and 8.7%, respectively, from the year-ago reported numbers. KO delivered a trailing four-quarter earnings surprise of 4.5%, on average.

Constellation Brands Inc.  (NYSE:STZ) posted better-than-expected first-quarter results after Tuesday’s closing bell.

Constellation Brands reported quarterly earnings of $3.43 per share, which beat the consensus estimate of $3.21 by 6.85%, according to Benzinga Pro data. Quarterly revenue clocked in at $2.43 billion, which beat the Street estimate of $2.39 billion.

"I see significant runway to continue growing our leading brands with an even greater emphasis on understanding consumer occasions and relevance — increasingly looking at our business through the lens of when, where and why consumers are choosing our brands," said CEO Nicholas Fink.

Constellation Brands affirmed its fiscal year adjusted EPS guidance of $11.20 to $11.90, versus the $11.75 analyst estimate.

Constellation shares rose 0.1% to $136.95 in pre-market trading.

These analysts made changes to their price targets on Constellation following earnings announcement.

Barclays analyst Lauren Lieberman maintained the stock with an Equal-Weight rating and lowered the price target from $170 to $139. Morgan Stanley analyst Dara Mohsenian maintained the stock with an Equal-Weight rating and lowered the price target from $183 to $158. Needham analyst Gerald Pascarelli reiterated Constellation Brands with a Buy and maintained a $185 price target. Considering buying STZ stock? Here’s what analysts think:

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Wall Street is pointed lower to start July, slumping after notching its best first-half performance in six years. Investors are wary of jobs data, after the latest private payrolls data came in at 98,000 in June, below estimates and highlighting signs of labor supply constraints.

Futures on the Nasdaq-100 (NDX) and Dow Industrial Average (DJI) have both shed over 100 points apiece, while S&P 500 (SPX) futures are flat. All eyes turn to Fed Chair Kevin Warsh, set to soon speak at the European Central Bank (ECB) policy forum in Portugal this morning.

Continue reading for more on today's market, including:

What history says about software's recent pullback, per Senior Quantitative Analyst Rocky White.  Video game stock flashing historical signal. Plus, STZ's earnings beat, KR's billion-dollar acquisition, falling chip stock. 

5 Things You Need to Know Today The Cboe Options Exchange saw roughly 2.3 million call contracts and 1.5 million put contracts traded on Tuesday. The single-session equity put/call ratio rose to 0.64, while the 21-day moving average remained at 0.58.  Beer maker Constellation Brands (NYSE:STZ) is up 1.5% premarket after earnings and revenue surpassed estimates, full-year guidance came in-line. The stock looks to bounce off $135 after the 60-day moving average rejected the stock's early-June attempt. Heading into today, STZ is flat year-to-date.  Shares of Kroger (NYSE:KR) are off 2% after a $1.65 billion Giant Eagle acquisition, heading for its fifth straight drop. KR is carrying an 11.1% year-to-date deficit into the open while sitting near two-year lows.  Micron Technology (NASDAQ:MU) is 6% lower before the open, after the chipmaker inked a strategic customer support deal with General Motors (GM). Micron stock has more than tripled in 2026 and is not far off of its June 25, $1,255 record-high.  This holiday-shortened week: General Mills earnings.

Yen's 40-Year Low Shakes Asian Bourses Asian markets closed on both sides of the aisle on Wednesday, after more volatility in tech. The South Korean Kospi shed 2%, while Hong Kong’s Hang Seng fell 0.6%. Meanwhile, Japan’s Nikkei rose 0.6%, with the yen touching a 40-year low against the U.S. dollar, and China’s Shanghai Composite added 0.4%.

European markets are lower, as investors unpack inflation numbers. Euro zone inflation fell to 2.8% in June from 3.2% in May as energy prices cooled, increasing the likelihood that the European Central Bank (ECB) will keep rates steady in late July. This marks the first decline since January, per the European Union’s statistics agency Eurostat. London’s FTSE 100 was last seen down 0.6%, while the French CAC 40 slides 1%, and the German DAX inches 0.05% lower

Constellation Brands, Inc. (STZ) Q1 2027 Earnings Call Transcript

Live Coverage Updates appear automatically as they are published.

Live Updates 2 hours ago

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That wraps up our initial coverage of Constellation Brands’ Q1 results. Thank you for stopping by!

Check out management’s earnings call on July 1 at 8 AM ET for more updates.

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Despite the earnings beat, management largely stuck with its outlook for fiscal 2027 rather than becoming more aggressive.

Constellation reaffirmed comparable EPS guidance of $11.20 to $11.90 while maintaining expectations for Beer net sales growth of -1% to 1%, Beer operating margins of 37% to 38%, operating cash flow of $2.4 billion to $2.5 billion, and free cash flow of $1.6 billion to $1.7 billion.

The only notable change was an increase in reported EPS guidance to $11.50-$12.20, reflecting items outside the company’s comparable results.

For investors, management’s decision to keep its comparable guidance suggests confidence that current demand trends and profitability remain strong despite ongoing macroeconomic uncertainty.

With shares moving higher after the report, the focus will now shift to whether executives provide a more optimistic tone during the earnings call, particularly around beer demand and the second half of the fiscal year.

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Constellation’s reported revenue declined 3% year over year, but that figure masks improving trends across the core business.

After adjusting for last year’s wine divestitures, organic net sales actually increased 3%, driven by continued strength in the Beer segment and improving momentum in the remaining Wine & Spirits portfolio. That means the reported decline reflects a smaller business following the sale of lower-end wine brands rather than broad-based weakness across the portfolio.

Beer net sales increased 2%, while the remaining Wine & Spirits business generated 8% organic net sales growth and 6.6% depletions growth, outperforming the broader wine and spirits category in both dollar and volume sales.

Management said the company also gained market share during the quarter despite what it described as a “discerning and value-conscious consumer environment,” suggesting premium brands continue to resonate with consumers.

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Constellation Brands continued generating strong cash flow while returning significant capital to shareholders.

Operating cash flow increased to $662 million, while free cash flow climbed 9% to $485 million during the quarter. The company repurchased $324 million of stock through June and returned more than $400 million to shareholders through buybacks and dividends.

It also reaffirmed its fiscal 2027 targets for $2.4-$2.5 billion in operating cash flow and $1.6-$1.7 billion in free cash flow.

Management said it remains committed to balancing investments in growth, including construction of its third brewery in Veracruz, with continued shareholder returns.

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Constellation’s beer business remained the company’s bright spot during the first quarter of fiscal 2027.

Beer net sales increased 2% as shipment volumes rose 1.8% alongside favorable pricing. While overall beer depletions slipped 0.3%, brands including Pacifico (+21%), Victoria (+14%), and Modelo Chelada (+6%) more than offset declines from Modelo Especial and Corona Extra.

The company also said it remained the #1 dollar share gainer across U.S. tracked beer channels, with five of the top 15 fastest-growing brands in the category.

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Constellation Brands just reported fiscal first-quarter results, with shares rising roughly 3% in after-hours trading after delivering stronger-than-expected profitability while maintaining its comparable full-year outlook.

Key numbers:

Revenue: $2.43 billion Reported EPS: $3.79 Comparable EPS: $3.43 Operating Income: $845 million (+18% YoY) Quick read:

The headline was driven by stronger earnings growth despite a 3% decline in reported net sales, reflecting last year’s wine divestitures. Management also reaffirmed its comparable FY2027 EPS outlook while slightly raising reported EPS guidance. 3 hours ago

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Heading into tonight’s report, here are the needle-moving items from Q4 FY2026 (reported April 8, 2026) that frame the setup heading into tonight’s Q1 results.

Last Quarter’s Top 3 Takeaways: Tone inflection from CEO Bill Newlands. Management’s language shifted from neutral in Q3 (“challenged operating environment”) to clearly upbeat in Q4, with Newlands citing “momentum we saw in the fourth quarter” and a “best-in-class organization is energized”. That positive pivot makes the FY2027 organic sales range of -1% to +1% look potentially conservative if Q1 confirms the momentum. Beer margin took a real hit from aluminum tariffs. Beer margins contracted roughly 340 basis points last quarter on tariff costs and higher depreciation, even as Beer net sales rose 1%. Whether that pressure is stabilizing or intensifying is the single biggest swing factor against the 37% to 38% Beer operating margin guide. Secondary brands are doing the heavy lifting. Pacifico delivered roughly 21% depletion growth in Q4 and Victoria around 17%, while Modelo Especial and Corona Extra depletions continued to decline. The portfolio was still the #1 dollar share gainer in U.S. tracked channels, but tonight’s question is whether the smaller brands can keep offsetting softness in the two largest franchises. Layer in $924.1M in FY2026 buybacks, plus another $75M in March 2026, and a 1% dividend hike to $1.03, and capital return remains the floor under the story.

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Top 5 Analyst Questions: Can March/April beer momentum sustain into Q1, given California share gains of over 1 point in the last four weeks? Update on Veracruz brewery startup timing and depreciation step-up? Any read-through on tariff relief or CUSMA risk? How is Wine & Spirits distributor destocking progressing? Is 9.5% of sales marketing spend front-loaded for the World Cup? Key Topics: Pacifico and Victoria runway Modelo Especial trajectory FY2028 visibility Capital return cadence after $924.1M in FY2026 repurchases Buzzwords: “factors within our control,” “dynamic operating environment,” “modular brewery expansion,” “depletion growth,” and “dollar share gainer.” Red Flags: Comparable EPS guidance trimmed below $11.20 Beer operating margin slipping below 37% Deeper Modelo Especial and Corona Extra declines Deceleration in Pacifico and Victoria depletions 3 hours ago

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Even after rebounding from recent lows, Constellation Brands still trades at roughly 12x forward earnings, well below many consumer staples peers.

Bulls argue that if management delivers a confident outlook, shows improving beer trends, and highlights World Cup-driven demand, investors could begin assigning the stock a higher earnings multiple.

With expectations remaining relatively muted heading into tonight’s Q1 2027 earnings report, positive guidance could have an outsized impact on sentiment.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Constellation Brands didn't make the cut. Grab the names FREE today.

3 hours ago

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Beyond sales growth, investors are watching whether stronger demand for beer can translate into higher profits.

Constellation entered fiscal 2027 with approximately 90% of its aluminum needs hedged, limiting the impact of higher aluminum costs that pressured margins after Section 232 tariffs were expanded.

If beer volumes improve alongside those lower input costs, earnings could outperform current Wall Street expectations.

3 hours ago

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One bullish thesis heading into earnings is that the 2026 FIFA World Cup could provide a meaningful demand boost for Constellation Brands’ beer portfolio.

Roughly 75% of tournament matches will be played in the U.S., while most games fall into North American viewing windows that historically support higher beer consumption.

Management has already said it plans to invest aggressively behind its brands during the tournament, particularly its premium light beer strategy.

Investors will be listening for any early read on World Cup demand and whether management believes it can provide a meaningful tailwind for fiscal 2027.

3 hours ago

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Tonight’s headline EPS number matters less than what management says about the rest of FY2027. Current guidance calls for comparable EPS of $11.20 to $11.90, Beer net sales growth of –1% to 1%, and a Beer operating margin of 37% to 38%, after the company withdrew its FY2028 outlook because of macroeconomic and tariff uncertainty.

Management has become more cautious after cutting FY2026 guidance last quarter, so investors will be listening closely for any changes in tone. The biggest questions are whether tariffs remain manageable, whether Pacifico and Victoria continue outperforming, and whether the Wine & Spirits business is finally stabilizing.

Bullish: Comparable EPS guidance above $11.90, Beer margins toward the high end of the range, or renewed visibility into FY2028.

Bearish: Comparable EPS guidance below $11.20, broader tariff headwinds, or further pressure on Beer margins.

3 hours ago

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This quarter marks one of the first major tests for CEO Bill Fink as investors look for evidence that Constellation Brands can navigate slowing consumer spending while protecting its industry-leading beer business.

The stock trades at roughly 12x forward earnings, a discount to many consumer staples peers, reflecting concerns around tariffs, softer wine and spirits demand, and questions about earnings growth.

The focus tonight is likely going to be around management’s commentary. Investors want reassurance that the beer segment can continue delivering solid margins and market share gains while the company executes its turnaround in wine and spirits.

A confident outlook for the second half of the fiscal year could help sentiment improve quickly. On the other hand, any signs of weakening demand or more cautious guidance would likely increase skepticism around current FY2027 earnings expectations.

Investors are watching Constellation Brands (NYSE:STZ | STZ Price Prediction) ahead of its Q1 FY2027 results, expected at 4:05 PM ET tonight. After a bruising stretch for the stock, this report will test whether beer momentum can survive tariff pressure and weakening consumer strength.

A Brewer Under Pressure The last quarter set a cautious tone. In Q4 FY26, reported April 8, 2026, STZ posted EPS of $1.90 on revenue of $1.92 billion, beating EPS estimates by 11.11% but missing on revenue. Beer margins absorbed a 340 basis point contraction from aluminum tariffs and higher depreciation.

Management issued FY27 guidance, then withdrew its FY28 outlook citing tariff uncertainty. Nicholas Fink took over as CEO on April 13, 2026, succeeding Bill Newlands. Since the report, shares have fallen 6.42%, with the stock now at $136.44. The University of Michigan Consumer Sentiment Index sits at 44.8, a recessionary reading that shadows every beverage call this earnings season.

FY2027 Guidance Framework Metric FY2027 Guide FY2026 Actual Comparable EPS $11.20 to $11.90 $11.82 Net Sales $8.91B to $9.09B $9.139B Beer Operating Margin 37% to 38% n/a Free Cash Flow $1.6B to $1.7B $1.794B Year-ago Q1 FY26 delivered EPS of $3.22 on revenue of $2.515 billion, both missing estimates.

Margin Defense and the World Cup Bet Tonight, I’ll be watching Constellation’s beer margins above all else. Fink’s first quarter as CEO arrives with management committing to aggressive marketing spend in the first half of the fiscal year, including a heavy World Cup push that prompted TD Cowen to cut its target to $174 from $190 and BofA to trim to $152 from $154. CFO Garth Hankinson flagged offsetting aluminum tariff relief in FY27, but the Veracruz brewery ramp adds fixed-cost absorption headwinds.

The brand mix story matters too. Pacifico grew depletions 21% in Q4 and Victoria 17%, but those gains have to keep offsetting declines in Modelo Especial and Corona Extra. Newlands noted on the last call that “March is off to a solid start, better than planned with continued increasing momentum.” Investors will look at whether that carried through May.

Wine & Spirits is another swing factor. The remaining portfolio posted 8% depletion growth in Q4, but distributor inventory rebalancing will weigh on reported sales through FY27. Hispanic consumer demand, weak sentiment, and any commentary on Mexico tariff exposure might also be worth watching.

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Contact [email protected] for any questions or corrections.

Constellation Brands (STZ - Free Report) came out with quarterly earnings of $3.43 per share, beating the Zacks Consensus Estimate of $3.22 per share. This compares to earnings of $3.22 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +6.40%. A quarter ago, it was expected that this wine, liquor and beer company would post earnings of $1.74 per share when it actually produced earnings of $1.9, delivering a surprise of +9.2%.

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

Constellation Brands, which belongs to the Zacks Beverages - Alcohol industry, posted revenues of $2.43 billion for the quarter ended May 2026, surpassing the Zacks Consensus Estimate by 1.21%. This compares to year-ago revenues of $2.52 billion. The company has topped consensus revenue estimates four 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.

Constellation Brands shares have added about 1.2% since the beginning of the year versus the S&P 500's gain of 8.7%.

What's Next for Constellation Brands?While Constellation Brands 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 Constellation Brands was unfavorable. 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 #4 (Sell) for the stock. So, the shares are expected to underperform 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 $3.74 on $2.58 billion in revenues for the coming quarter and $11.78 on $9.13 billion 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, Beverages - Alcohol is currently in the bottom 20% 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.

MGP (MGPI - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026.

This producer of distillery and ingredients products used by the packaged goods industry is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of -49.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

MGP's revenues are expected to be $127.74 million, down 12.2% from the year-ago quarter.

ROCHESTER, N.Y., June 30, 2026 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE: STZ), a leading beverage alcohol company, reported today its first quarter fiscal 2027 financial results. A conference call to discuss the financial results and outlook will be hosted by President and Chief Executive Officer, Nicholas Fink, and Chief Financial Officer, Garth Hankinson, on Wednesday, July 1, 2026 at 8:00 a.m. ET. Visit ir.cbrands.com to locate information for joining the conference call, or a live, listen-only webcast of the conference call.

ABOUT CONSTELLATION BRANDS
Constellation Brands (NYSE: STZ) is a leading international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Our mission is to build brands that people love because we believe elevating human connections is Worth Reaching For. It’s worth our dedication, hard work, and calculated risks to anticipate market trends and deliver for our consumers, shareholders, employees, and industry. This dedication is what has driven us to become one of the fastest-growing, large CPG companies in the U.S. at retail, and it drives our pursuit to deliver what’s next.

Every day, people reach for brands from our high-end, imported beer portfolio anchored by the iconic Corona Extra and Modelo Especial, a flavorful lineup of Modelo Cheladas, and favorites like Pacifico, and Victoria; our exceptional wine brands including The Prisoner Wine Company, Robert Mondavi Winery, Kim Crawford, Schrader Cellars, and Lingua Franca; and our craft spirits brands such as Mi CAMPO Tequila and High West Whiskey.

As an agriculture-based company, we strive to operate in a way that is sustainable and responsible. Our ESG strategy is embedded into our business and we focus on serving as good stewards of the environment, investing in our communities, and promoting responsible beverage alcohol consumption. We believe these aspirations in support of our longer-term business strategy allow us to contribute to a future that is truly Worth Reaching For.

To learn more, visit www.cbrands.com and follow us on LinkedIn and Instagram.

A PDF containing our first quarter fiscal 2027 financial results and full financial tables is available at: http://ml.globenewswire.com/Resource/Download/46e744f1-3497-4d66-b70c-8da93fea1287

Constellation Brands reports earnings Tuesday, with investors focused on whether Modelo and Corona can keep beer sales growing while offsetting pressure on margins.

Constellation Brands is scheduled to report earnings after the closing bell Tuesday, with traders anticipating a sizable move from the wine and beer maker's stock.

Key Takeaways BF.B's premiumization strategy is supported by Jack Daniel's, Woodford Reserve and other premium brands.BF.B gained momentum from Tennessee Blackberry and New Mix, while emerging markets delivered strong growth.BF.B expects flat organic sales and a 3%-5% decline in organic operating income in fiscal 2027. Brown-Forman Corporation (BF.B - Free Report) enters fiscal 2027 with a familiar mix of premium brand strength and uneven consumer demand. The stock’s outlook rests on whether innovation, emerging markets and better route-to-consumer execution can offset soft trends in developed markets.

The company still has valuable levers. Jack Daniel’s, Woodford Reserve, Old Forester, New Mix, Diplomático and Gin Mare give Brown-Forman exposure to premium spirits, American whiskey and ready-to-drink products. Near-term visibility, however, remains limited.

Fiscal 2026 showed the tension clearly. Reported net sales decreased 1% to $3.9 billion, while organic net sales were flat. Reported operating income declined 10% to $1.0 billion and organic operating income slipped 2%. Earnings per share fell 17% to $1.53.

The fourth quarter offered some sales relief but did not reset the broader story. Net sales increased 2% to $912 million, including 2% organic growth, while reported operating income dropped 53% to $96 million. Profit pressure remains a central concern.

Image Source: Zacks Investment Research

The premiumization case remains the main reason to stay engaged with the name. Whiskey net sales increased 3% on a reported basis and 1% organically in fiscal 2026, helped by the launch of Jack Daniel’s Tennessee Blackberry, foreign exchange and Woodford Reserve growth in the United States. These gains were partly offset by declines in Jack Daniel’s Tennessee Whiskey.

Innovation gave the portfolio an important lift. Jack Daniel’s Tennessee Blackberry reached almost 300,000 nine-liter depletions in the United States by fiscal year-end and almost 150,000 nine-liter depletions across six European launch markets. New Mix also stood out, with net sales up 41% on a reported basis and 33% organically, fueled by market share gains in Mexico and its U.S. launch.

Geography is another support point. Emerging market net sales increased 14% on a reported basis and 12% organically in fiscal 2026, led by growth across the Jack Daniel’s family of brands in Türkiye, the United Arab Emirates and Brazil, plus strong double-digit growth of New Mix in Mexico. Travel Retail net sales rose 6% on a reported basis and 5% organically.

Brown-Forman is also reshaping how it reaches consumers. Owned distribution in Italy supported fiscal 2026 organic sales growth, while Japan is being used to deepen premium spirits execution. In the United States, the company named 11 new distributors across 25 markets to improve execution, investment support and margin structure.

The bear case is still meaningful. U.S. net sales declined 7% on a reported basis in fiscal 2026 and were flat organically. Developed International net sales were flat on a reported basis but declined 3% organically, hurt by the absence of American-made beverage alcohol from retail shelves in most Canadian provinces and declines in Germany and the United Kingdom.

Category trends also remain uneven. The tequila portfolio declined 4% on a reported basis and 6% organically. Herradura fell 9% reported and 10% organically, while el Jimador declined 2% on both measures. Jack Daniel’s ready-to-drink and ready-to-pour portfolio fell 3% on a reported basis and 5% organically.
Fiscal 2027 guidance keeps the risk debate alive. Management expects organic net sales to be approximately flat and organic operating income to decline 3-5%. That outlook suggests benefits from restructuring, distributor changes and innovation may be absorbed by macro pressure, geopolitical instability and weak consumption in developed markets.

Investors tracking beverage alcohol stocks may also compare Brown-Forman with Diageo plc (DEO - Free Report) , where brand execution and spirits demand are key considerations. Constellation Brands (STZ - Free Report) offers another reference point for evaluating consumer spending, category mix and pricing power across alcohol names.

Bottom line, Brown-Forman has credible long-term assets, but fiscal 2027 looks more like a rebuilding year than a clean rebound. Premium whiskey, ready-to-drink growth and emerging markets support the outlook, while developed-market softness, tequila weakness and lower operating income guidance temper enthusiasm.

BF.B currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock has a VGM Score of C, a Value Score of C, a Growth Score of C and a Momentum Score of B. The rank points to a balanced near-term earnings outlook, while the Style Scores suggest average value and growth characteristics, with relatively better momentum. For now, that combination supports a measured view rather than an aggressive stance.

Key Takeaways Constellation Brands is expected to post Q1'27 EPS of $3.28, suggesting 1.9% y/y growth.STZ is expected to gain from beer and wine & spirits momentum, premiumization, and Mexico capacity expansion.STZ faces packaging, raw material, depreciation and brewery expansion costs that may impact operating income. Constellation Brands, Inc. (STZ - Free Report) is scheduled to release first-quarter fiscal 2027 results on June 30, 2026. The alcoholic beverage bigwig is expected to have recorded growth in its bottom line in the to-be-reported quarter.

The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings is pegged at $3.28 per share, indicating 1.9% growth from the year-ago quarter’s actual. The consensus mark has moved down 1.2% in the past 30 days. The consensus estimate for revenues is pegged at $2.4 billion, suggesting a 3.9% decline from the prior-year quarter’s reported figure.

In the last reported quarter, the alcohol behemoth delivered an earnings surprise of 9.2%. Its bottom line beat estimates by 7.1%, on average, in the trailing four quarters.

What the Zacks Model Says for STZ StockOur proven model does not conclusively predict an earnings beat for Constellation Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Constellation Brands currently has an Earnings ESP of -3.23% and a Zacks Rank #4 (Sell).

Key Factors to Note Before STZ’s Q1 ResultsConstellation Brands’ first-quarter fiscal 2027 results are expected to reflect momentum in its beer, and wine & spirits businesses. The company is expected to have benefited from its premiumization strategy and investments in its capacity expansion in Mexico. The beer business continues to outperform the category in dollar share gains.

Premiumization continues to reinforce the company’s premium positioning via disciplined investment, portfolio expansion and consumer-led marketing. The beer segment has also been experiencing gains from premiumization, driven by growth in traditional beer and flavored categories, including seltzers, flavored beer, RTD spirits and flavored malt beverages. The company is investing in its Power Brands through innovation and capitalizing on priority consumer trends with successful product introductions.

The wine and spirits business has been transitioning its portfolio toward higher-end brands that align better with consumer-led premiumization trends. Key growth drivers included the company's high-end Power Brands, such as The Prisoner Brand Family, Kim Crawford and Meiomi.

On the last reported quarter’s earnings call, management expressed confidence in the continued momentum of its beer and wine & spirits businesses, with growth expected across both segments.

However, high packaging and raw material costs from continued inflationary pressures, as well as increased depreciation and operating costs from brewery capacity expansions, are likely to have been concerning. This is expected to have impacted the operating income in the beer, and wine and spirits businesses.

STZ Stock’s Valuation PictureFrom a valuation perspective, Constellation Brands offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 11.94X, which is below the five-year high of 18.64X and the Beverages - Alcohol industry’s average of 15.58X, the stock offers compelling value for investors seeking exposure to the alcohol beverages space.

Image Source: Zacks Investment Research

The recent market movements show that STZ shares lost 4.9% in the past three months against the industry's 13.6% growth.

Image Source: Zacks Investment Research

Stocks With the Favorable CombinationHere are some companies, which, according to our model, have the right combination of elements to post an earnings beat this time around:

Ollie's Bargain Outlet (OLLI - Free Report) presently has an Earnings ESP of +1.42% and a Zacks Rank #2. The company is expected to register top and bottom-line growth when it reports second-quarter fiscal 2026 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $765.7 billion, which indicates a rise of 12.7% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for quarterly earnings has moved up 1.7% in the past 30 days. The consensus mark for Ollie's earnings indicates growth of 19.2% from the year-ago quarter’s reported number. OLLI delivered an earnings surprise of 4.9%, on average, in the trailing four quarters.

Tyson Foods (TSN - Free Report) currently has an Earnings ESP of +2.17% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter fiscal 2026 EPS is pegged at $1.04, which implies an increase of 14.3% from the year-ago quarter’s actual. The consensus mark has moved down 2.8% in the past seven days.

The consensus mark for Tyson Foods’ quarterly revenues is pegged at $14.3 billion, which indicates growth of 2.9% from the figure reported in the prior-year quarter. TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.

Colgate-Palmolive (CL - Free Report) currently has an Earnings ESP of +0.78% and a Zacks Rank #3. The company is expected to register growth in its top and bottom lines when it reports second-quarter 2026 results. The Zacks Consensus Estimate for CL’s quarterly earnings has moved down by a penny in the past 30 days to 96 cents per share. The consensus estimate for earnings indicates 3.3% growth from the year-ago quarter's number.

The Zacks Consensus Estimate for Colgate’s quarterly revenues is pegged at $5.4 billion, implying a rise of 4.7% from the figure reported in the prior-year quarter. CL delivered an earnings surprise of 3%, on average, in the trailing four quarters.

Constellation Brands, Inc. (NYSE:STZ) will release earnings for its first quarter after the closing bell on Tuesday, June 30.

Analysts expect the Rochester, New York-based company to report quarterly earnings of $3.25 per share, up from $3.22 per share in the year-ago period. The consensus estimate for Constellation’s quarterly revenue is $2.4 billion. It reported $2.52 billion last year, according to Benzinga Pro.

On May 21, Constellation Brands announced the election of Morgan Flatley as new independent board director.

Shares of Constellation rose 1.3% to close at $143.38 on Tuesday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

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Constellation Brands Inc (NYSE:STZ) reports fiscal first-quarter results after the close on June 30, and the setup is bumpy.

UBS is modeling EPS of $3.12, below the Street consensus of $3.24, after cutting estimates to reflect weaker beer demand.

The stock has dropped 11.4% in recent months while the broader consumer staples sector gained 3.6%.

The reversal has been sharp. Beer equivalent units were up 2% in early April, but dollar takeaway and EQ units both finished the quarter in negative territory, down 1.3% and 2% respectively. UBS now forecasts beer depletions down 1% for the quarter versus a Street estimate of positive 0.3%.

Earlier in the year, investors had expected a strong start, with World Cup and US anniversary tailwinds seen as potential demand drivers. That optimism has since faded.

UBS expects Constellation to hold its full-year guidance, which calls for EPS of $11.20 to $11.90 and beer sales in a range of -1% to +1%. The bank sees the guidance as achievable and maintains a Buy rating, though it trimmed its price target to $175 from $186.

At roughly 12.5 times forward earnings, UBS sees the risk/reward tilting positive. But analysts warned that what happens with demand trends over the next few weeks will matter more to the stock than the earnings print itself.

Image: Bigstock

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Players in the Zacks Beverages – Alcohol industry remain under pressure as inflation hikes costs across labor, transportation and raw materials. Higher ingredient, packaging and shipping expenses are squeezing margins, while increased spending on marketing, promotions and daily operations continues to weigh on profitability. Tariffs add another layer of risk, pushing up prices for imported brands, dampening demand and disrupting supply chains.

Despite these headwinds, growth opportunities persist. Premiumization continues to gain traction as consumers shift toward higher-quality, distinctive offerings. Segments like ready-to-drink spirits, canned wines and cocktails, hard seltzers, ciders and flavored malt beverages are reshaping the market, attracting younger consumers while offering convenience and variety to more established drinkers.

To capitalize on these trends, leading players, including Anheuser-Busch InBev (BUD - Free Report) , Diageo Plc (DEO - Free Report) , Constellation Brands Inc. (STZ - Free Report) , Brown-Forman Corporation (BF.B - Free Report) and Molson Coors Beverage Company (TAP - Free Report) , are intensifying investments in innovation, technology and premium brand positioning. While volatility in input costs and tariffs may continue to pressure margins in the near term, strong brand equity and premium-led innovation are expected to remain the industry’s primary growth drivers.

About the Industry The Zacks Beverages – Alcohol industry mainly comprises producers, importers, exporters, marketers and sellers of alcoholic beverages like beer, craft beer, ciders, wine, rum, whiskey, liqueurs, vodka, tequila, champagnes, brandy, amaretto, ready-to-drink (RTD) cocktails and malt. Some industry players also produce and sell non-alcoholic beverages like carbonated soft drinks, sparkling waters, bottled water, energy drinks, powdered and natural juices, and RTD teas. The companies sell products through wholesalers and retailers like supermarkets, warehouse clubs, grocery stores, convenience stores, package stores, drug stores and other retail outlets. The industry participants also sell beer directly to consumers in cans and bottles at restaurants, pubs, bars and liquor stores. Some brewers operate brewpubs or tasting rooms at breweries, offering consumers the freshest beer.

What's Shaping the Future of Beverages - Alcohol Industry Elevated Costs: The alcohol industry continues to grapple with elevated cost pressures from inflation across labor, transportation and raw materials. Higher prices for key inputs such as grains and fruits, along with rising costs for packaging, co-packing, fuel and logistics, have pushed up production and operating expenses, weighing on the gross and operating margins.

In addition to input inflation, companies are facing increased spending on advertising, promotions and SG&A as they step up brand investments, media activity and local market execution. Higher freight costs tied to volume growth, along with rising wages and discretionary expenses, are contributing to margin pressure and SG&A deleverage. Many industry participants expect these headwinds to persist in the near term, continuing to challenge profitability.

Potential Tariff Impacts: Tariffs imposed by President Donald Trump are expected to create severe headwinds for the U.S. beverage alcohol industry, with implications for pricing, supply chains, trade flows and consumer demand. Tariffs on imports from Canada, Mexico and China raise input and landed costs for a range of imported spirits and beers, including well-known international brands. These higher costs are likely to be passed on to consumers, resulting in price increases that could weigh on volumes. At the same time, supply chains may face disruption as companies reassess sourcing and logistics, potentially leading to delays, tighter availability and higher operating expenses. As prices rise and choice narrows, consumers may trade down or reduce consumption, pressuring industry sales and margins.

Premiumization & Product Diversification: Premiumization remains a core growth engine for the alcohol industry as consumers increasingly gravitate toward distinctive flavors, higher-quality offerings and experiential brands. In response, beverage companies are broadening their portfolios to capture demand for premium and super-premium products while extending beyond traditional beer, wine and spirits. The category mix is rapidly evolving, with strong momentum in craft spirits, low- and no-alcohol offerings, RTD spirits, canned wines and cocktails, hard seltzers, cider and flavored malt beverages. As consumer preferences fragment and occasions diversify, sustained innovation and agile product development have become critical for brands seeking to remain relevant, defend pricing power and drive long-term growth.

Zacks Industry Rank Indicates Dull Prospects The Zacks Beverages – Alcohol industry is a 14-stock group within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #205, placing it at the bottom 16% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. 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.

The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential.

Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry’s recent stock-market performance and valuation picture.

Industry Underperforms S&P 500 The Zacks Beverages – Alcohol industry has outperformed the broader sector and underperformed the S&P 500 in the past year.

The stocks in the industry have collectively returned 4.8% in the past year, whereas the Zacks Consumer Staples sector has declined 3.2%. Meanwhile, the Zacks S&P 500 composite has rallied 34.6%.

1-Year Price Performance

Beverages - Alcohol Industry's Valuation Based on the forward 12-month price-to-earnings (P/E) ratio, commonly used to value Consumer Staples stocks, the industry is currently trading at 15.71X compared with the S&P 500’s 21.49X and the sector’s 16.57X.

Over the last five years, the industry traded as high as 26.77X, as low as 13.77X and at the median of 18.61X, as the chart below shows.

Price-to-Earnings Ratio (Past 5 Years)

5 Alcohol Beverages Stocks to Keep a Close Eye on None of the stocks in the Zacks Beverages – Alcohol space currently sports a Zacks Rank #1 (Strong Buy) and a Zacks Rank #2 (Buy). However, we have selected five stocks with a Zacks Rank #3 (Hold) to watch from the same industry. You can see the complete list of today’s Zacks #1 Rank stocks here.

Let us have a look at the companies.

Anheuser-Busch InBev: Also known as AB InBev, this is a global brewing leader with a portfolio of iconic brands spanning diverse geographies. Its leading positions across key markets and expansive global footprint provide meaningful scale advantages, enabling efficient operations and the ability to grow multi-country brands worldwide. The company continues to benefit from resilient consumer demand for its core brands, supported by strong business momentum, driven by disciplined execution, sustained brand investment and an accelerated digital transformation agenda. Premiumization remains a central growth lever, as consumers increasingly trade up within the beer category.

Beyond core beer, AB InBev is steadily expanding its Beyond Beer portfolio, encompassing ready-to-drink offerings, such as canned wines and cocktails, along with hard seltzers, ciders and flavored malt beverages. This diversification strategy is enhancing relevance across occasions and consumer segments, while providing an incremental growth runway and supporting top-line momentum. The Zacks Consensus Estimate for AB InBev’s 2027 sales and earnings suggests growth of 6.7% and 12.3% from the year-ago period’s reported figures. The consensus mark for the company’s 2027 earnings has moved down 0.5% in the past seven days. The Zacks Rank #3 stock has gained 16.9% in the past year.

Price & Consensus: BUD

Diageo: The stock of this London-based leading beverage company has declined 25.6% in the past year. DEO operates in approximately 180 countries, and is involved in producing, distilling, brewing, bottling, packaging, and distributing spirits, wine and beer. The company continues to place innovation and consumer moderation at the center of its long-term growth strategy, addressing evolving consumption patterns and diversifying its portfolio. Innovation remains a key driver, with strong momentum across tequila, whisky, beer and RTD formats.

Equally important is Diageo’s push into moderation, wherein it has established clear leadership in non-alcoholic spirits. The company is refining its $2-billion productivity program to drive efficiency across the business while ensuring long-term sustainable growth. A key focus is balancing cost savings with strategic reinvestment, particularly in marketing and brand activation. The Zacks Consensus Estimate for Diageo’s fiscal 2027 EPS has been unchanged in the past 30 days. The consensus estimate for fiscal 2027 earnings suggests a decline of 3.2% from the year-ago period’s reported figure.

Price & Consensus: DEO

Constellation Brands: The Victor, NY-based third-largest beer company and a leading, high-end wine company in the United States continues to benefit from a sharp focus on brand building and a steady cadence of innovation. The company’s premiumization strategy remains a key growth driver, led by the sustained strength of the Modelo and Corona brand families and continued traction across its Power Brands portfolio. Its beer business is benefiting from premium and above-premium trends, supported by growth in traditional beer and adjacent categories, such as flavored beer, seltzers, RTD spirits and flavored malt beverages.

STZ is actively investing to extend the momentum of its Power Brands, aligning innovation with evolving consumer preferences and delivering successful product launches. Meanwhile, the company’s digital momentum continues to build through platforms, such as Instacart, Drizly and retailer-owned channels, reflecting consumers’ growing preference for convenience-driven purchasing. The Zacks Consensus Estimate for STZ’s fiscal 2027 earnings per share has moved down 3.5% in the past seven days. The consensus estimate for fiscal 2027 sales and earnings suggests growth of 0.6% and 0.9%, respectively, from the year-ago period’s reported figures. The Zacks Rank #3 stock has lost 10.2% in the past year.

Price & Consensus: STZ

Brown-Forman: Based in Louisville, KY, this is a global spirits company that manufactures, distills, bottles, imports, exports, markets and sells a broad portfolio of premium alcoholic beverages. The company’s growth strategy is anchored in premiumization, with a clear focus on high-quality, premium and super-premium spirits that support brand equity and margin resilience. The portfolio has been streamlined around core power brands such as Jack Daniel’s and Woodford Reserve, complemented by successful additions like the Jack Daniel’s and Coca-Cola RTD and the integration of super-premium labels Gin Mare and Diplomático.

Emerging markets continue to provide a strong growth offset, driven by rising middle-class demand and momentum across the Jack Daniel’s family. Disciplined pricing, innovation, distribution evolution and tighter cost control underpin long-term value creation despite near-term pressures. The Zacks Consensus Estimate for BF.B’s fiscal 2026 sales and earnings suggests declines of 2.3% and 4.4%, respectively, from the year-ago period’s reported figures. The consensus mark for the Zacks Rank #3 company’s fiscal 2026 earnings has moved up 1.7% in the past 30 days. BF.B has declined 11.6% in the past year.

Price & Consensus: BF.B

Molson Coors: The stock of this Chicago, IL-based leading beverage company has declined 25.6% in the past year. TAP is on track with its revitalization plan, focused on achieving sustainable top-line growth by streamlining its organization and reinvesting resources into its brands and capabilities. Investments, partnerships and product launches, which are part of its revitalization plan, have been aiding the company.

Molson Coors has been committed to increasing its market share through innovation and premiumization. Intending to accelerate portfolio premiumization, TAP has been aggressively growing its above-premium portfolio in the past few years. The Zacks Consensus Estimate for Molson Coors’ 2026 EPS has been unchanged in the past 30 days. The consensus estimate for the Zacks Rank #3 company’s 2026 sales and earnings suggests declines of 0.2% and 11.8%, respectively, from the year-ago period’s reported figures.

Price & Consensus: TAP

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Published in consumer-staples

Posted by Defense World Staff on Apr 24th, 2026

Cwm LLC lifted its position in Constellation Brands Inc (NYSE:STZ – Free Report) by 350.2% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 18,651 shares of the company’s stock after purchasing an additional 14,508 shares during the quarter. Cwm LLC’s holdings in Constellation Brands were worth $2,573,000 as of its most recent SEC filing.

Other institutional investors also recently bought and sold shares of the company. Root Financial Partners LLC acquired a new stake in Constellation Brands in the third quarter valued at approximately $26,000. Stance Capital LLC acquired a new stake in shares of Constellation Brands in the 3rd quarter worth $26,000. GoalVest Advisory LLC acquired a new stake in shares of Constellation Brands in the 4th quarter worth $28,000. Salomon & Ludwin LLC acquired a new stake in shares of Constellation Brands in the 3rd quarter worth $30,000. Finally, CVA Family Office LLC raised its position in Constellation Brands by 713.2% in the third quarter. CVA Family Office LLC now owns 309 shares of the company’s stock valued at $42,000 after purchasing an additional 271 shares during the period. 77.34% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets A number of research firms have commented on STZ. Sanford C. Bernstein lifted their target price on Constellation Brands from $195.00 to $197.00 and gave the company an “outperform” rating in a research report on Friday, January 9th. JPMorgan Chase & Co. lifted their target price on Constellation Brands from $155.00 to $163.00 and gave the company a “neutral” rating in a research report on Wednesday, April 1st. Morgan Stanley lifted their price objective on Constellation Brands from $160.00 to $183.00 and gave the company an “equal weight” rating in a research note on Friday, April 10th. Weiss Ratings raised Constellation Brands from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, February 5th. Finally, Citigroup reaffirmed a “buy” rating on shares of Constellation Brands in a research note on Friday, April 10th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, Constellation Brands has an average rating of “Moderate Buy” and an average price target of $178.14.

View Our Latest Stock Report on STZ

Constellation Brands Trading Up 1.6% Shares of NYSE STZ opened at $159.38 on Friday. Constellation Brands Inc has a twelve month low of $126.45 and a twelve month high of $196.91. The company has a current ratio of 1.08, a quick ratio of 0.55 and a debt-to-equity ratio of 1.16. The stock has a fifty day simple moving average of $154.43 and a 200-day simple moving average of $147.20. The stock has a market capitalization of $27.64 billion, a PE ratio of 16.62, a PEG ratio of 3.44 and a beta of 0.44.

Constellation Brands (NYSE:STZ – Get Free Report) last issued its quarterly earnings data on Wednesday, April 8th. The company reported $1.90 earnings per share for the quarter, beating analysts’ consensus estimates of $1.71 by $0.19. Constellation Brands had a return on equity of 26.18% and a net margin of 17.29%.The business had revenue of $1.92 billion during the quarter, compared to analysts’ expectations of $1.84 billion. During the same period in the previous year, the firm posted $2.63 earnings per share. The company’s revenue was down 11.3% on a year-over-year basis. On average, equities analysts forecast that Constellation Brands Inc will post 11.9 earnings per share for the current year.

Constellation Brands Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, May 14th. Investors of record on Wednesday, April 29th will be paid a dividend of $1.03 per share. This represents a $4.12 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend is Wednesday, April 29th. This is a positive change from Constellation Brands’s previous quarterly dividend of $1.02. Constellation Brands’s payout ratio is presently 42.54%.

Constellation Brands Company Profile (Free Report)

Constellation Brands, Inc is a leading producer and marketer of beer, wine and spirits, with operations spanning production, importation, marketing and distribution. The company’s beverage portfolio includes a range of premium and mainstream wines and spirits alongside major imported beer brands; in the U.S. market Constellation is widely known for its role in bringing Mexican imports such as Corona and Modelo to American consumers. Constellation supplies retail, on‑premise and foodservice channels and supports its brands with national sales and marketing platforms and supply‑chain capabilities.

The company traces its roots to the Canandaigua Wine Company, founded by Marvin Sands in 1945, and evolved through organic growth and acquisition into a diversified beverage company.

See Also Five stocks we like better than Constellation Brands Want to see what other hedge funds are holding STZ? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Constellation Brands Inc (NYSE:STZ – Free Report).

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May 04, 2026 17:15 ET  | Source: Constellation Brands, Inc.

ROCHESTER, N.Y., May 04, 2026 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE: STZ), a leading beverage alcohol company, announced today that it priced the public offering of $500.0 million aggregate principal amount of 4.850% Senior Notes due 2031 (the "notes") for a public offering price of 99.943% of the principal amount of the notes. The notes will be senior obligations that rank equally with all of Constellation’s other senior unsecured indebtedness.

Closing of the offering is expected to occur on May 6, 2026, subject to the satisfaction of customary closing conditions. Constellation intends to use the net proceeds from the offering, together with commercial paper borrowings and/or cash on hand, to redeem prior to maturity all of our outstanding 3.700% Senior Notes due 2026 in the aggregate principal amount of $600 million and for general corporate purposes.

BofA Securities, Inc., Goldman Sachs & Co. LLC, PNC Capital Markets LLC, and Truist Securities, Inc. are acting as the joint book-running managers of the offering. The notes are being offered only by means of a prospectus, including a prospectus supplement, copies of which may be obtained by contacting BofA Securities, Inc. toll-free at (800) 294-1322 or emailing [email protected], contacting Goldman Sachs & Co. LLC collect at (212) 902-1000, contacting PNC Capital Markets LLC toll-free at (855) 881-0697, or contacting Truist Securities, Inc. toll-free at (800) 685-4786. Alternatively, the prospectus and prospectus supplement may be obtained by visiting EDGAR on the SEC website at https://www.sec.gov.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy notes. The notes will not be offered or sold in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful.

ABOUT CONSTELLATION BRANDS
Constellation Brands is an international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Constellation’s brand portfolio includes Modelo Especial, Corona Extra, Modelo Cheladas, Pacifico, Victoria, The Prisoner Wine Company, Robert Mondavi Winery, Kim Crawford, Schrader Cellars, Lingua Franca, Mi CAMPO Tequila, and High West Whiskey.

FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Statements which are not historical facts and relate to future plans, events, or performance, including statements related to the settlement date of the offering and the anticipated use of proceeds, are forward-looking statements that are based upon management’s current expectations and are subject to risks and uncertainties. The forward-looking statements should not be construed in any manner as a guarantee that such events or results will in fact occur or will occur on the timetable contemplated hereby. All forward-looking statements speak only as of the date of this news release and Constellation undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Detailed information regarding risk factors with respect to the company and the offering are included in the company’s filings with the SEC, including the prospectus and prospectus supplement for the offering.

A downloadable PDF copy of this news release can be found here. http://ml.globenewswire.com/Resource/Download/f427d04f-91eb-4e0b-abe6-86ab455f9f67

Attachments Constellation Brands Prices Offering of Senior Notes_05.04.2026...

In a time when shoppers are dismayed by sticker shock across all types of stores, four companies will remain atop the best consumer stocks to buy in 2026 for their resilience, competitive moats, and ability to keep customers happy. Walmart (WMT +0.27%), Costco (COST +0.34%), PepsiCo (PEP +0.28%), and Constellation Brands (STZ +2.84%) do more than just survive economic downturns; they are positioned to continue to grow through them.

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Walmart is becoming a tech company Back in December 2025, Walmart switched from the New York Stock Exchange (NYSE) to the Nasdaq to better align with its identity as a tech-driven, omnichannel retailer. Walmart has an impressive diversified portfolio ranging from groceries to household goods and even a rapidly growing advertising business. In this regard, Walmart competes directly with the behemoth Amazon.

Walmart's financials are exceptional. In fiscal year 2026, the retailer reported a 4.7% increase in overall revenue, bringing the total to $713 billion. The global advertising business was the real star of the year, growing 46% to $6.4 billion. Walmart raised its quarterly dividend to $0.2475 per share, which works out to $0.99 per share per year. The company has now increased dividends for 53 consecutive years.

Walmart's stock is up 18% in 2026, and the company has surpassed the $1 trillion market cap milestone. Walmart's continued growth, combined with its consistency and solid dividend, makes it a must-have for investors buying consumer staples stocks -- with a refreshing high-tech twist.

Costco's loyal members Costco has created a growth flywheel that seems nearly indestructible. The membership model is extremely resilient and reliable, as more than 90% of customers renew each year. Costco's digital sales also grew 22.6% in its most recent quarter. This combination is fueling Costco's tremendous success.

Image source: Getty Images.

Costco's stock does trade at a premium, with its trailing P/E ratio just above 50. The stock's dividend has been consistently increased and is now $1.47 per share each quarter. Costco's premium pricing is justified by its revenue predictability and its ability to sustain growth across economic cycles. Costco has plans to open 28 more locations this year alone.

PepsiCo is lowering prices and raising dividends PepsiCo is another Dividend King on the list, meaning it has raised its dividend for more than 50 consecutive years. Pepsi's dividend yield is now an impressive 3.61%. For income-focused investors, Pepsi is a worthy addition to the portfolio.

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What's most interesting about Pepsi right now is how it is going about luring back customers. The beverage and snack company recently lowered the prices of many of its products by up to 15% after activist investor Elliott Investment Management began pressuring the company. This bucks the industry trend and was a risky bet, but as of its most recent quarterly earnings, the strategic decisions seem to be paying off.

Pepsi's stock is also reasonably priced at 24 times trailing earnings and, with positive momentum, looks to be a strong growth-and-income investment for long-term investors. Pepsi itself is well diversified, boasting more than 200 brands under its umbrella.

Could Constellation make a comeback? There's no doubt Constellation Brands is a riskier pick than the other companies listed above. However, there could be plenty of upside with Constellation. The company is not without its challenges, but those have largely been priced into the stock at this point.

In fiscal year 2026, Constellation generated $1.8 billion in free cash flow and used part of it to fund its dividend. The beverage company also repurchased about $1 billion in shares.

Most notably, famed investor Warren Buffett initiated and then continued to build Berkshire Hathaway's position in Constellation before retiring. The company is very reasonably priced and poised for growth as it focuses on the premium beer sector. As of this writing, Constellation's stock is still down 20% in the past 12 months, and has a very attractive forward P/E ratio just above 12.

If you're an investor looking for growth, income, or even potential upside, these four consumer staples stocks are hard to beat. Steady performance and compound growth are the hallmarks of these companies. Particularly in uncertain economic times, these consumer staples titans are a solid foundation for almost any portfolio.

A month has gone by since the last earnings report for Constellation Brands (STZ - Free Report) . Shares have lost about 7.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Constellation Brands due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Constellation Brands Inc before we dive into how investors and analysts have reacted as of late.

Constellation Brands' Q4 Earnings Beat EstimatesConstellation Brands reported fourth-quarter fiscal 2026 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. The company’s sales and earnings declined year over year on weak consumer demand trends.

Comparable earnings per share (EPS) of $1.90 dropped 28% year over year in the fiscal fourth quarter but surpassed the Zacks Consensus Estimate of $1.74. On a reported basis, the company’s EPS was $1.16 against a loss of $2.09 reported in the year-earlier quarter.

Net sales declined 11% year over year to $1.920 billion but came above the Zacks Consensus Estimate of $1.896 billion. Organic net sales were flat year over year.

STZ’s Q4 Performance DetailsConstellation Brands' sales for the beer business jumped nearly 1% year over year to $1.73 billion, backed by a rise of 1.1% in shipment volumes and favorable pricing, partly offset by unfavorable mix. Depletions rose 0.6% as declines for Modelo Especial of just under 1% and Corona Extra of about 6% were more than offset by increases from Pacifico, Victoria and the Modelo Chelada brands of nearly 21%, 17%, and 5%, respectively.

Sales in the wine and spirits segment plunged 58% year over year to $194.2 million in the fiscal fourth quarter. The metric was hurt by a 72.9% decline in shipment volumes, reflecting the effects of the Wine & Spirits divestitures, changes in distributor contractual obligations and pricing efforts taken on certain brands.

The Zacks Consensus Estimate for the company's beer, and wine and spirits segments is currently pegged at $1.71 billion and $195 million, respectively.

Peeking Into Constellation Brands’ MarginsSTZ's comparable operating income came in at $508 million, down 9% year over year. Operating income for the beer segment slipped 8% year over year to $572.5 million. The beer segment’s operating margin contracted 340 basis points (bps) to 33.2%, as favorability in net sales was more than offset by higher cost of goods sold owing to unfavorable fixed cost absorption, elevated depreciation and aluminum tariffs.

The wine and spirits segment reported an operating income of $2.6 million, which fell sharply from $99.7 million in the year-ago quarter. The segment’s operating margin contracted to 1.3% from 21.7%, mainly owing to the unfavorable impacts from sales, somewhat offset by favorable marketing and other selling, general and administrative expenses.

STZ’s Financial Position Seems StrongAs of Feb. 28, 2026, Constellation Brands’ cash and cash equivalents were $102.4 million, long-term debt (excluding current maturities) was $9.7 billion and total shareholders’ equity (excluding non-controlling interest) was $8.1 billion. The company generated an operating cash flow of $2.7 billion and an adjusted free cash flow of $1.8 billion in fiscal 2026.

STZ’s board announced a quarterly dividend of $1.03 per share for Class A shares on April 8, 2026, representing a hike of 1%. The dividend is payable on May 14 to its shareholders of record as of April 29, 2026.

The company’s strong cash flow generation in fiscal 2026 enabled it to consistently execute disciplined capital allocation priorities. The company returned more than $1.6 billion to its shareholders, including share repurchases of more than $900 million.

Constellation Brands still forecasts an operating cash flow of $2.4-$2.5 billion for fiscal 2027. It expects free cash flow of $1.6-$1.7 billion. STZ plans to incur capital expenditures of $800 million in fiscal 2027.

Constellation Brands’ FY27 ExpectationsLooking forward, management is optimistic about the momentum seen in the reported quarter across its beer and wine & spirits businesses. Enterprise and wine & spirits growth (decline) net sales assumptions for fiscal 2027 exclude $142 million for the March 1, 2025, to June 1, 2025 period. These are no longer part of the year-over-year results following the 2025 Wine Divestitures.

STZ projects enterprise organic net sales growth (decline) of (1)% - 1%, beer net sales growth (decline) of (1)% - 1%, and wine & spirits business organic net sales growth (decline) of (1)% - 1%. Enterprise operating margin on a reported and comparable basis is projected to be 32-33%, with beer operating margin of 37-38% and wine & spirits operating margin of 5-6%.

The company anticipates comparable EPS of $11.20-$11.90 for fiscal 2027 compared with $11.82 earned in fiscal 2026. STZ expects reported fiscal 2027 EPS to be $11.10-$11.80 compared with $9.61 seen in fiscal 2026. Constellation Brands anticipates a reported and comparable tax rate of 20% for fiscal 2027.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.

VGM ScoresAt this time, Constellation Brands has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Constellation Brands has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.