Results
Delivers EPS Growth Driven by Net Sales and Business Division Operating Income Growth
Management commentary
Beer Business Accelerates Category Leading Share Gains Across U.S. Tracked Channels
Capital return
Returns an Additional $400 Million to Shareholders Through Share Repurchases and Dividends
Results
Net SalesOperating Income (Loss)EPS
Reported$2,633$805$3.32
% Change6%(8%)25%
Comparable$2,633$897$3.74
% Change6%1%3%
Generates reported EPS of $3.32 and comparable EPS of $3.74
5Beer Business delivers both net sales and operating income growth of 5% and 1%, respectively, while leading the category in dollar and volume share gains, outperforming the total beer category by 4 percentage points in year-over-year dollar and volume sales across Circana U.S. tracked channels
7Wine and Spirits Business delivers net sales growth of 17% and depletions growth of 10.2%, outperforming the total wine and spirits category in both dollar and volume sales in Circana U.S. tracked channels as the wine portfolio was the #3 dollar share gainer in the total wine category
2Generates year-to-date operating cash flow of $1.5 billion and free cash flow of $1.1 billion, a decrease of 1% and an increase of 4%, respectively
Outlook
Updates fiscal 2027 reported EPS outlook to $11.85 - $12.55, and reaffirms comparable EPS outlook of $11.20 - $11.90, operating cash flow target of $2.4 - $2.5 billion, and free cash flow target of $1.6 - $1.7 billionGuidance raised
Capital return
Repurchases $530 million of shares year-to-date through September 2026
Declares quarterly cash dividend of $1.03 per share of Class A Common Stock
Management commentary
“During the second quarter, our portfolio of iconic brands continued to resonate with consumers.
We have sharpened our execution and increased investment across the business, and are beginning to see early returns through accelerating dollar and volume share gains in both our Beer and Wine & Spirits businesses relative to the first quarter.
As a result, we were the #1 dollar share gainer in beverage alcohol“Through the first half of fiscal 2027, our strong cash flow generation enabled us to continue executing our disciplined and balanced capital allocation priorities.
4We maintained our target comparable net leverage ratio of ~3.0x, returned more than $800 million to shareholders through share repurchases and dividends, and continued to invest in our business through increased
during the second quarter.
Looking ahead, we remain focused on building on this momentum by expanding our reach across more consumers and occasions, while investing behind the brands and capabilities that will support our next phase of growth.”brand marketing support.
As we look to the second half of the year, we remain committed to supporting long-term growth, maintaining financial flexibility, and returning capital to shareholders.”
Results
Net sales increased 5% driven by a 5.5% increase in shipment volumes.
1Operating margin decreased 160 bps to 39.0% as lower tariff expenses and favorable fixed cost absorption were more than offset by increased marketing investment and other SG&A spend.
Depletions decreased 0.6% as declines for Modelo Especial of approximately 2% and Corona Extra of approximately 5% were partially offset by growth from Pacifico, Victoria, and the Modelo Chelada brands of approximately 19%, 15%, and 5%, respectively.
One additional sell day during the quarter was largely offset by a shift in the timing of the Labor Day holiday, resulting in minimal impact on underlying depletion trends.
Our Beer Business ranked as the #1 dollar and volume share gainer in Circana U.S. tracked channels and had 5 of the top-15 dollar share gaining brands across the entire U.S. beer category:
Modelo Especial maintained its position as the #1 brand by dollar sales and was the #3 dollar share gainer.
Within the brand family, Modelo Chelada Limón y Sal was the #6 dollar share gainer;
Corona Extra remained a top-five brand by dollar sales, while Corona Familiar was the #14 dollar share gainer;
Pacifico and Victoria were the #2 and #10 dollar share gainers, respectively, and Pacifico became a top-10 brand by dollar sales.
Corporate events
SPIKEDADE ACQUISITION
Subsequent to the quarter, we acquired SpikedAde, a differentiated, consumer-led spirit-based RTD brand competing in the emerging “Ade” segment.
The addition of SpikedAde to our portfolio of iconic brands is consistent with our strategy to selectively expand into new demand spaces aimed at sustainable consumer trends, strengthens our position in the fast-growing RTD category, and remains aligned with our disciplined capital allocation priorities.
The transaction included a $75 million payment at close for 100% ownership of the business, as well as additional contingent consideration of up to $278 million payable over five years based on the future performance of the SpikedAde business.
The acquisition does not impact our fiscal 2027 outlook below.Guidance reaffirmed
HIGHLIGHTS
Results
8Net sales increased 17% driven by a 15.4% increase in shipment volumes.
3Operating margin improved to 3.8% driven by favorability in COGS from recoveries of U.S. tariffs and savings across marketing and other SG&A from our optimization and restructuring initiatives.
6Depletions increased 10.2% driven by growth from Kim Crawford and Mi CAMPO of approximately 11% and 51%, respectively.
Across Circana U.S. tracked channels, our wine and spirits portfolio outpaced the total wine and spirits category in both dollar and volume sales, as our wine portfolio was the #3 dollar share gainer in the total wine category.
Outlook
OUTLOOK
Capital return
QUARTERLY DIVIDEND
On October 6, 2026, Constellation’s board of directors declared a quarterly cash dividend of $1.03 per share of Class A Common Stock payable on November 13, 2026, to stockholders of record as of the close of business on October 30, 2026.
SUPPLEMENTAL INFORMATION
Corporate events
our President and Chief Executive Officer transition;
2025 Wine Divestitures3/1/2025 - 5/31/2025
2025 Wine Divestitures3/1/2025 - 5/31/2025
Results
CONSTELLATION BRANDS, INC.
AND SUBSIDIARIES SUMMARIZED SEGMENT, INCOME (LOSS) FROM UNCONSOLIDATED INVESTMENTS, AND DEPRECIATION AND AMORTIZATION INFORMATION (in millions) (unaudited)
Corporate events
2025 Wine Divestitures3/1/2025 - 5/31/2025
Results
Strategic business reconfiguration costs We recognized costs in connection with activities intended to streamline operations, improve efficiencies, and reduce our cost structure.
Operating income (loss) also includes the loss on settlement of a receivable related to the sale of a previously-owned facility (three months and six months ended August 31, 2026).
107 boilerplate lines (safe-harbor disclaimer, contacts, call details) are set aside.