Constellation Brands

STZ Q1 2026 Earnings

Reported Jul 1, 2025 at 4:12 PM ET · SEC Source

Q1 26 EPS

$3.22

MISS 2.27%

Est. $3.29

Q1 26 Revenue

$2.52B

MISS 1.60%

Est. $2.56B

vs S&P Since Q1 26

-21.7%

TRAILING MARKET

STZ -5.5% vs S&P +16.1%

Market Reaction

Did STZ Beat Earnings? Q1 2026 Results

Constellation Brands delivered a disappointing fiscal Q1 2026, missing on both the top and bottom lines as softer consumer demand weighed on results across the portfolio. Comparable EPS came in at $3.22, falling 2.27% short of the $3.29 consensus est… Read more Constellation Brands delivered a disappointing fiscal Q1 2026, missing on both the top and bottom lines as softer consumer demand weighed on results across the portfolio. Comparable EPS came in at $3.22, falling 2.27% short of the $3.29 consensus estimate and declining 10% year-over-year, while revenue of $2.52 billion trailed expectations by 1.60% and slid 5.5% from the prior-year period. The primary culprit was the Beer Business, where shipment volumes fell 3.3% and depletions declined 2.6% amid what management described as non-structural socioeconomic headwinds, with Beer operating margin compressing 150 basis points to 39.1% under pressure from aluminum tariffs and higher marketing costs. The Wine and Spirits segment added to the strain, swinging to a $6 million operating loss following divestitures of mainstream brands. Despite the weak quarter, the company held firm on its full-year comparable EPS outlook of $12.60 to $12.90 and maintained free cash flow guidance of $1.50 to $1.60 billion, signaling confidence that the near-term softness remains a cyclical rather than structural challenge, a view that long-term investors may find reassuring given the stock's historical track record.

Key Takeaways

  • Beer Business was #1 dollar share gainer in U.S. beer category with 6 of top 15 dollar share gaining brands in Circana channels
  • Modelo Especial maintained #1 brand position in dollar sales despite approximately 4% depletion decline
  • Pacifico continued double-digit volume and dollar growth with over 13% depletion growth, remaining #4 dollar share gainer
  • Free cash flow increased 41% driven by timing of brewery capacity investments reducing capex
  • Softer consumer demand driven by socioeconomic headwinds impacted overall volumes
  • Wine and Spirits remaining higher-end portfolio delivered approximately 2% U.S. depletion growth
24/7 Wall St

STZ YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

STZ Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 25 Q4 26

“While we continued to face softer consumer demand largely driven by what we believe to be non-structural socioeconomic factors, our teams remain focused on executing the key initiatives that underpinned the outlook we recently provided for fiscals 2026 to 2028. Against that backdrop, we are pleased to continue to lead the U.S. Beer industry in dollar share gains, to have fully repositioned our Wine and Spirits portfolio in higher-growth and higher-margin segments, and to consistently deliver against our capital allocation priorities.”

— Bill Newlands, Q1 2026 Earnings Press Release