10-Q · July 1, 2026
Constellation Brands reported a strong Q1 FY 2027 with revenues of $2.43 billion and EPS of $3.43, surpassing estimates. The beer segment saw a 2% increase in net sales, while wine and spirits revenue declined…
Earnings analysis · 10-Q
STZ earnings analysis
Filed October 7, 2026 · Our reading of the company's report
The latest report
Constellation Brands reported Q2 revenue of $2.633 billion and EPS of $3.74, ahead of consensus estimates of $2.545 billion and $3.56. The filing shows extensive hedging, continued repurchases, and effective disclosure…
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Constellation Brands reported Q2 revenue of $2.633 billion and EPS of $3.74, ahead of consensus estimates of $2.545 billion and $3.56. The filing shows extensive hedging, continued repurchases, and effective disclosure controls, but also highlights a $10.2616 billion fixed-rate debt balance, material sensitivity to market movements, and pending shareholder litigation. Fiscal 2027 reported EPS guidance of $11.85-$12.55 and previously disclosed cash-flow targets were maintained.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.74
What stood out
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Revenue and EPS beat estimates
Q2 revenue was $2.633 billion and EPS was $3.74, exceeding consensus estimates of $2.545 billion and $3.56, respectively.
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Foreign-currency hedging remains substantial
The company had hedged 89% of forecasted transactional foreign-currency exposures for the remaining six months of Fiscal 2027 as of August 31, 2026.
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Commodity exposure largely hedged
Approximately 90% of forecasted transactional commodity exposures were hedged as of August 31, 2026, covering aluminum, corn, diesel fuel, and natural gas.
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Meaningful share repurchases continued
The company repurchased 1,704,371 shares during the quarter at an average price of $135.49, leaving $2.6212 billion available under the $4.0 billion authorization.
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No material control deficiencies reported
Management concluded that disclosure controls were effective as of the end of the period, and no changes materially affected internal control over financial reporting during the quarter.
What to watch
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Large debt balance remains rate-sensitive
Fixed-rate debt had aggregate notional value of $10.2616 billion as of August 31, 2026. A hypothetical 1% increase in prevailing interest rates would reduce its estimated fair value by $483.3 million.
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Residual FX and commodity exposure
A hypothetical 10% adverse market move produced estimated fair-value impacts of $(219.0) million for foreign-currency contracts and $(36.5) million for commodity derivatives, indicating material residual market exposure despite hedging.
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Securities and derivative litigation pending
The Low securities litigation remains pending after oral argument on the motion to dismiss on July 22, 2026; the complaint seeks damages in an unspecified amount. Related Silva and Mason derivative proceedings remain stayed pending final judgment in Low.
Management's outlook
Fiscal 2027 reported EPS outlook of $11.85-$12.55 was disclosed in the accompanying earnings update. Comparable EPS of $11.20-$11.90, operating cash flow of $2.4-$2.5 billion, and free cash flow of $1.6-$1.7 billion were reaffirmed. The 10-Q extract does not provide a new quantitative outlook range.
Earlier filings 2
10-K · April 22, 2026
Constellation Brands reported consolidated net sales of $9,139.0 million in Fiscal 2026, down from $10,208.7 million in Fiscal 2025 after the 2025 Wine Divestitures; the Beer segment remains dominant at $8,315.2 million…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.