Highlights

  • Net sales declined 15% in Q2 FY26 due to softer beer shipments and distributor inventory adjustments.
  • Net income improved to USD 486.1 million in Q2, reversing last year’s loss on margin recovery and lower non-cash charges.
  • Operating cash flow fell 20.5% amid higher working-capital needs and lower shipment volumes.
  • FY2026 guidance reaffirmed, supported by targeted cost efficiencies and ongoing brewery expansion in Mexico.

Constellation Brands, Inc. (NYSE:STZ) is a global producer and marketer of beer, wine, and spirits, operating across the United States, Mexico, New Zealand, and Italy. Its portfolio includes well-known brands such as Corona Extra, Modelo Especial, Robert Mondavi Winery, Kim Crawford, The Prisoner Wine Company, High West, Casa Noble, and Mi CAMPO. The company operates through three segments: Beer, Wine and Spirits, Corporate Operations, and Other.

Constellation Brands reported mixed results in the second quarter of the financial year 2026 (Q2 FY26). Net sales declined 15% YoY to USD 2,481 million, primarily due to softer beer shipments, distributor inventory adjustments, and broader macroeconomic pressures, particularly among Hispanic consumers. Net income improved  to USD 486.1 million, reversing a significant loss in the prior-year quarter, supported by margin recovery, reduced non-cash charges, and resilience in the beer segment. Operating cash flows fell 20.5% to USD 1,489.3 million, impacted by higher working-capital requirements, lower shipment volumes, and timing differences in inventory and distributor payments. Total cash and equivalents rose 5.7% to USD 72 million, reflecting disciplined cash management, share repurchases, and strong underlying cash generation despite softer sales.

Company Outlook

Constellation Brands maintains a cautiously optimistic outlook for FY2026. The company reaffirmed its comparable EPS guidance of USD 11.30–11.60, supported by an operating cash flow target of USD 2.5–2.6 billion and free cash flow expectations of USD 1.3–1.4 billion. Despite macroeconomic pressure on consumer spending and softer beer volumes, management anticipates Beer net sales to decline 2%–4% and Beer operating income to decrease 7%–9%. The Wine & Spirits segment is expected to contract further, largely due to recent divestitures. Constellation plans to rely on disciplined marketing investments, cost-efficiency measures, and its ongoing brewery expansion in Mexico to support long-term growth once consumer conditions improve.

Top 10 Shareholders

The top 10 shareholders collectively own about 42.68% of the company, reflecting a relatively concentrated ownership structure. The Vanguard Group, Inc. and Berkshire Hathaway Inc. are the largest holders, with stakes of roughly 10.42% and 7.70%, respectively.

 

Stock Performance

As of November 24, 2025, the stock closed at USD 132.11, reflecting a modest gain of 0.88% over the past week but a monthly decline of 5.38%. The stock has seen negative momentum over longer periods, with year-to-date and one-year returns at -40.22% and -44.88%, respectively. The current price is 46.15% below its 52-week high of $245.31 (set on December 10, 2024) and just 4.48% above its recent 52-week low of $126.45, reached on November 10, 2025.

Data source: NYSE, Analysis: Kalkine Group
STZ Daily Technical Chart; Data source: EODHD/Others

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 24 November 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.