EarningsQ2 2027 Earnings Report
MX:STZ Q2 2027 EPS Results
Actual EPS$67.18
Consensus EPS$63.71
Beat/MissBeat by +$3.47
One Year Ago EPS$65.20
MX:STZ Q2 2027 Revenue Results
Actual Revenue$47.29B
Expected Revenue$45.60B
Beat/MissBeat by +$1.69B
YoY Revenue Growth+6.14%
Earnings Announcement Details
QuarterQ2 2027
Date10/06/2026
TimeAfter Close
Conference CallTuesday, October 6, 2026
MX:STZ Upcoming Earnings
Constellation Brands's next earnings date is estimated for January 7, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
MX:STZ Q2 2027 Earnings Call
0:00 / 0:00
Q2 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly optimistic. Management reported a quarterly beat, reiterated fiscal 2027 guidance, cited improving September trends, leading share gains, healthy distributor inventories, strong growth from Pacifico, Victoria, Mi CAMPO, and SpikedAde, and substantial capital allocation flexibility. The main challenges were seasonal second-half margin pressures, higher planned marketing and SG&A spending, flat Q2 price/mix, Corona's performance still being below expectations, and a future depreciation headwind from Veracruz. Highlights significantly outweighed the lowlights.Company Guidance
Quarterly Results Beat Expectations and Guidance Reiterated
Management stated that fiscal 2027 second-quarter results beat expectations and reiterated comparable EPS guidance of $11.20 to $11.90 per share. If the positive September trends continue, the company expects to land at the high end of that range.
September Trends Accelerated Beyond Timing Effects
Management said September showed non-timing-related acceleration after adjusting for Labor Day timing and the extra sell day in Q2. The improvement was described as broad-based, with healthy consumer engagement across the category.
Leading Beverage Alcohol Dollar Share Gains
Constellation stated that it was the #1 dollar share gainer in beverage alcohol during the quarter, with marketing-driven green shoots across the portfolio.
Beer Business Outperformed and Accelerated
The beer business outperformed and accelerated meaningfully quarter-on-quarter. Management said the company is significantly outperforming the industry.
Pacifico Reached the Top 10 Beer Brands
Pacifico became a top 10 beer brand, with management describing a long distribution runway ahead. Pacifico was also cited as compounding at approximately 20% growth year-to-date.
Distributor Inventories Returned to a Healthy Position
Management said distributor inventories are now in a great position, remain lower than historical averages, and entered the third quarter in a much better position. September depletions were trending in the right direction, while days on hand remained below the company's long-term average.
Shipments and Depletions Expected to Track Closely
After rebuilding distributor inventories during the first half, management expects the back half of the year to look normal compared with other years and expects full-year shipments and depletions to track within 99% of each other.
Corona and Modelo Trends Improved
Management said Corona's share has stabilized, with Circana 12-week performance better than its 52-week performance and 4-week performance better than its 12-week performance. Modelo was also described as showing nice stabilization, with additional opportunities among Hispanic consumers and in the middle of the country during football season.
Victoria Delivered Mid-Teens Growth
Victoria was described as growing at a mid-teens rate in the first half of the year on a meaningful base, with additional runway to build distribution and awareness.
Nonalcoholic Portfolio Continued to Gain Traction
Management said the nonalcoholic portfolio is gaining more traction, with Corona NA ranked as the #3 brand in its category. The company stated that it plans to put more behind the brand.
Mi CAMPO Posted 50% Growth
Mi CAMPO, described as a homegrown innovation launched from scratch, was compounding at 50% growth. Management expects it to become a multimillion-case full-strength spirits brand and said distributors are fully behind it.
SpikedAde Added as a High-Growth Brand
Constellation announced the addition of SpikedAde and said the brand is expected to approach 2 million cases in calendar 2026. Management expects the acquisition to be accretive to growth next year and described the brand as having a wide distribution runway.
Marketing Investments Are Producing Share Gains
Management said increased marketing investments and focus are working. The company expects second-half marketing to be about 10% of net sales, with third-quarter marketing above 11% as it continues investing in Major League Baseball and NCAA football.
World Cup Activation Outperformed Competitors
Management said Constellation was the winner of the World Cup from a share-gain perspective, delivering 3x more beer market-share gains than the next-best competitor and 400 basis points of outperformance versus the category, while spending significantly less than other companies.
Cost Efficiencies Reached Approximately $600 Million
The company said it has driven approximately $600 million of cost efficiencies since Investor Day. Management is now building a more systematic, multiyear continuous-improvement program intended to support operating excellence, sustain margins, and enable reinvestment for growth.
Veracruz Construction Progressed to Approximately 85%
The Veracruz site was approximately 85% complete. Management expects to bring it online in the beginning of fiscal 2028.
Share Repurchases Remained Active
Constellation repurchased $530 million of shares year-to-date and had $2.5 billion remaining under its repurchase authorization, which runs through fiscal 2028. Management said the company has the flexibility and capability to repurchase more shares.
Disciplined M&A and Capital Allocation Flexibility
Management said strong cash flow generation provides the flexibility to pursue disciplined M&A while continuing share repurchases and dividends. The SpikedAde transaction was presented as an example of acquiring a business with momentum at a cost comparable to developing and launching a new organic innovation.
Beer Margin Outlook Remained Within Guidance
Management expects second-half beer operating margins of 34.5% to 35.5%, describing this as normal seasonality for the business.
Commodity and Currency Hedging Provided Protection
Management said the company is highly hedged across commodities and currencies for the current fiscal year, with hedging at or above 90% for most exposures and diesel described as fully hedged for the year. Incremental hedges were added during periods of market weakness to protect fiscal 2028 and beyond.
Broad Channel Strength
The September recovery was described as broad-based. Management specifically cited continued strength in club, as well as opportunities in national accounts and convenience stores through improved product, pack, and channel mix.
Long-Term Pricing Discipline Maintained
Management reiterated a long-term pricing framework of generally 1% to 2%, while stating that the company may operate at the lower end of that range when needed to sharpen competitiveness. The company said it continues to evaluate consumer elasticity, price gaps, pack-price architecture, and value offerings.
MX:STZ Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed