Constellation Brands, Inc. (STZ) Q2 FY2027 earnings

Reported results

• Reported net sales of $2,633 million, up 6%; comparable net sales of $2,633 million, up 6%
• Reported operating income of $805 million, down 8%; comparable operating income of $897 million, up 1%
• Reported EPS of $3.32, up 25%; comparable EPS of $3.74, up 3%
• Beer Business net sales up 5% to $2,473.6 million with operating income up 1% to $964.2 million; depletions down 0.6%
• Wine and Spirits Business net sales up 17% to $159.4 million with operating income up 131% to $6.1 million; depletions up 10.2%
• Year-to-date operating cash flow of $1.5 billion, down 1%; free cash flow of $1.1 billion, up 4%

Guidance

• Fiscal 2027 reported EPS guidance of $11.85 - $12.55 (updated)
• Fiscal 2027 comparable EPS guidance of $11.20 - $11.90 (reaffirmed)
• Fiscal 2027 operating cash flow target of $2.4 - $2.5 billion (reaffirmed)
• Fiscal 2027 free cash flow target of $1.6 - $1.7 billion (reaffirmed)
• Enterprise organic net sales growth (decline) of (1)% - 1%
• Beer net sales growth (decline) of (1)% - 1%
• Wine and Spirits organic net sales growth (decline) of (1)% - 1%
• Enterprise reported operating margin of 31% - 32%; comparable operating margin of 32% - 33%
• Beer operating margin of 37% - 38%
• Wine and Spirits operating margin of 5% - 6%
• Reported tax rate of ~12%; comparable tax rate of ~20%

Notes

Six-month comparable net sales exclude $142 million in divestiture sales from March 1, 2025 to June 1, 2025, following 2025 Wine Divestitures. SpikedAde acquisition completed post-quarter for $75 million at close plus up to $278 million in contingent consideration over five years; does not impact FY2027 outlook. Year-to-date share repurchases total $530 million. Quarterly dividend declared of $1.03 per share of Class A Common Stock.

Price and volatility reaction

The stock moved +2.4% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -6.0 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-10-06 (8-K, Item 2.02). Read the original filing on sec.gov.