Constellation Brands Beats Estimates, Shares Slip 4% After Hours

Constellation Brands, the U.S. importer of Corona and Modelo beer, reported second-quarter comparable earnings of $3.74 a share on Tuesday, Oct. 6, up 3% from $3.63 a year earlier, the company said. Net sales rose 6% to $2.63 billion. Both figures were above analysts' forecasts, but the stock fell about 4% in after-hours trading.

Shares traded at about $110.56 at 4:50 p.m. Eastern time, according to Yahoo Finance data, down 4.4% from the regular-session close of $115.67. The stock had gained 2.1% during Tuesday's session. The company posted results after the close for the quarter ended Aug. 31.

How did Constellation Brands do against estimates?

The results beat expectations on both lines. Analysts had expected earnings of $3.62 a share and revenue of $2.57 billion, according to the Zacks consensus estimate cited by Yahoo Finance before the report.

Measure	Q2 fiscal 2027	Year earlier	Change
Net sales	$2.633 billion	$2.481 billion	+6%
Comparable EPS	$3.74	$3.63	+3%
Reported EPS	$3.32	$2.65	+25%
Beer net sales	$2.474 billion	$2.345 billion	+5%
Beer shipments (cases)	123.9 million	117.4 million	+5.5%
Beer depletions	—	—	-0.6%
Beer operating margin	39.0%	40.6%	-1.6 points
Wine and spirits net sales	$159.4 million	$136.0 million	+17%

Source: Constellation Brands earnings release, Oct. 6, 2026.

What happened in the beer business?

Beer, by far the largest unit, grew net sales 5% on a 5.5% rise in shipments, the company said. But depletions, which track sales from distributors to retailers, slipped 0.6%. Modelo Especial depletions fell about 2% and Corona Extra about 5%, while Pacifico rose about 19% and Victoria about 15%.

The beer operating margin fell 160 basis points to 39.0%. Lower tariff costs were more than offset by higher marketing and other spending, the company said.

"We have sharpened our execution and increased investment across the business, and are beginning to see early returns," Chief Executive Nicholas Fink said in the release.

Did Constellation Brands change its outlook?

It kept its main forecast. The company reaffirmed comparable earnings of $11.20 to $11.90 a share for fiscal 2027, which ends Feb. 28, and updated its reported earnings outlook to $11.85 to $12.55. It still expects beer net sales to range from a 1% decline to 1% growth, and free cash flow of $1.6 billion to $1.7 billion.

The company also said it bought SpikedAde, a vodka-based ready-to-drink brand, for $75 million at closing, plus up to $278 million more over five years depending on performance. It said the deal does not change its outlook. It declared a quarterly dividend of $1.03 a share and has repurchased $530 million of stock so far this fiscal year through September.

Executives will discuss the results on a call at 8 a.m. Eastern time on Wednesday, Oct. 7.

Earlier on Tuesday, Constellation Energy jumped on a nuclear power deal with Google, a different company with a similar name. For more on the businesses moving markets, see our companies section and our markets section.