Constellation Brands Lowers FY26 Outlook Due to Macro Headwinds, Beer Net Sales Forecast Down 2%-4%

Constellation Brands cut its fiscal year 2026 outlook, citing macroeconomic headwinds affecting consumer demand. The company lowered its comparable earnings per share outlook to $11.30 to $11.60, down from prior guidance of $12.60 to $12.90. Enterprise organic net sales are expected to decline 4% to 6%, and beer net sales are forecast to fall 2% to 4%. Free cash flow is now expected at $1.3 billion to $1.4 billion, compared with the prior range of $1.5 billion to $1.6 billion. The stock is trading 6.99% lower at $150.61.

Constellation Brands (STZ) has revised its fiscal 2026 outlook downward, reflecting the impact of macroeconomic headwinds on consumer demand. The company has lowered its comparable earnings per share (EPS) guidance to $11.30 to $11.60, a significant reduction from its prior forecast of $12.60 to $12.90 [1].

The revised outlook also includes a projected decline in enterprise organic net sales of 4% to 6%, down from the previously expected 2% decline to 1% growth. Beer net sales are forecast to fall by 2% to 4%, with beer operating income expected to decrease by 7% to 9% due to lower volumes, operational deleveraging, and additional tariffs [1].

Despite these challenges, Constellation Brands maintains its market leadership in the beer segment. Through July, the company achieved volume share growth in 49 of 50 states and a 0.4 point increase in dollar share in the U.S. beer category [1].

The company's free cash flow guidance has been reduced to between $1.3 billion and $1.4 billion, down from the previously projected range of $1.5 billion to $1.6 billion. This reduction reflects broader operational challenges and the company's commitment to cost-saving initiatives and a $4 billion share repurchase program [1].

The stock price of Constellation Brands has fallen by 6.99% to $150.61 in response to the revised outlook [2].

References:
[1] https://www.gurufocus.com/news/3089426/constellation-brands-updates-fiscal-2026-outlook-stz-stock-news
[2] https://finance.yahoo.com/news/constellation-brands-stock-falls-slashing-122433004.html