Constellation Brands ( (STZ) ) has released its Q2 earnings. Here is a breakdown of the information Constellation Brands presented to its investors.
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Constellation Brands, Inc. is a leading international producer and marketer of beer, wine, and spirits, with operations in the U.S., Mexico, New Zealand, and Italy, known for its high-end imported beer portfolio, including brands like Corona Extra and Modelo Especial.
In its latest earnings report for the second quarter of fiscal year 2026, Constellation Brands highlighted its continued strategic execution in a challenging operating environment, with significant dollar share gains in the U.S. beer market and substantial returns to shareholders through share repurchases.
The company reported net sales of $2.481 billion, a decline of 15% compared to the previous year, but operating income showed a significant increase of 171%, reaching $874 million. The Beer Business outperformed the industry, with notable growth in brands like Pacifico and Victoria, despite a 7% decline in net sales. The Wine and Spirits segment faced a 65% decline in net sales due to divestitures but managed to outpace the higher-end wine segment in U.S. tracked channels.
Looking ahead, Constellation Brands remains focused on its strategic objectives, including maintaining its investment-grade rating and advancing brewery investments. The company updated its fiscal 2026 reported EPS outlook to $9.86 – $10.16 and affirmed its comparable EPS outlook of $11.30 – $11.60, with a continued commitment to delivering cash returns to shareholders through dividends and share repurchase programs.