Constellation Brands 2026 Q2 Earnings Strong Performance as Net Income Surges 141.1%

Constellation Brands (STZ) reported its fiscal 2026 Q2 earnings on October 6, 2025. The company significantly outperformed expectations with a sharp turnaround in profitability and raised full-year guidance. Despite a 15% revenue decline, it posted strong net income growth and affirmed its adjusted EPS outlook.

Revenue

Constellation Brands reported total revenue of $2.48 billion for the second quarter, a 15.0% decline from $2.92 billion in the prior-year period. The company's Beer segment generated $2.35 billion in revenue, while the Wine and Spirits division totaled $159 million, with $112.50 million attributed to wine and $23.50 million to spirits. Consolidated net sales, which include all segments, amounted to $2.48 billion.

Earnings/Net Income

Constellation Brands returned to profitability with earnings per share (EPS) of $2.65, a significant improvement from a loss of $6.59 per share in the year-ago period—representing a 140.2% positive change. The company’s net income reached $486.10 million, reversing a net loss of $1.18 billion in the same period last year, a 141.1% increase. This robust performance highlights the company’s strategic turnaround efforts.

Price Action

The stock price of Constellation Brands has experienced mixed performance in recent trading periods, with a 1.98% decline on the latest trading day and a 1.64% increase over the past full week. Month-to-date, the stock has fallen 4.91%.

Post Earnings Price Action Review

Following the earnings release, Constellation Brands shares surged 3.09% in after-hours trading, reaching $143 at the time of publication, according to Benzinga Pro. The positive reaction reflects investor confidence in the company’s performance and revised outlook.

CEO Commentary

Bill Newlands, President and CEO, emphasized the company’s focus on strategic execution amid challenging socioeconomic conditions, noting progress in distribution, innovation, and brand investments. Garth Hankinson, CFO, reiterated the company’s commitment to maintaining investment-grade ratings, optimizing brewery investments, and delivering shareholder returns through dividends and buybacks.

Guidance

The company updated its fiscal 2026 outlook to a reported EPS range of $9.86–$10.16 and affirmed a comparable EPS range of $11.30–$11.60. It also expects operating cash flow of $2.5–$2.6 billion and free cash flow of $1.3–$1.4 billion. The Beer Business anticipates a net sales decline of 2%–4% and a 7%–9% drop in operating income. Share repurchases reached $604 million through September 2025, and a quarterly dividend of $1.02 per Class A share was declared.

Additional News

Constellation Brands Inc. reported Q2 revenue of $2.48 billion, exceeding analyst estimates of $2.46 billion, according to Benzinga Pro. The company also beat adjusted earnings estimates, reporting $3.63 per share compared to the expected $3.38. While the beer business saw a high-single-digit net sales decline, the wine and spirits segment posted double-digit organic declines. Management credited strategic execution for distribution gains and outperformance in the higher-end wine category. The company ended the quarter with approximately $72 million in cash and reaffirmed its fiscal 2026 adjusted EPS guidance of $11.30–$11.60, slightly above the consensus estimate of $11.49. It also reiterated expectations for operating and free cash flow. An earnings call is scheduled for Tuesday at 8 a.m. ET.