Constellation Brands second-quarter profit rises as sales reach $2.63 billion

Constellation Brands Inc. (STZ) said Monday in an earnings release that its second-quarter net sales grew to $2.63 billion for the period ended August 31, 2026, up from $2.48 billion a year earlier.

Here's how the company did:

• Revenue: $2.63 billion vs. $2.48 billion a year earlier
• EPS: $3.32 vs. $2.65 a year earlier
• Comparable EPS: $3.74 vs. $3.63 a year earlier

President and Chief Executive Officer Nicholas Fink said in a statement, "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."

The beer segment generated net sales of $2.47 billion, up 5% from a year earlier, driven by a 5.5% increase in shipment volumes. Operating income for the beer business was $964.2 million, compared with $951.6 million a year earlier. Operating margin in the beer division decreased 160 basis points to 39.0%.

The wine and spirits business posted net sales of $159.4 million, up 17% from $136 million a year earlier, driven by a 15.4% increase in shipment volumes. Operating income for the division reached $6.1 million, compared with an operating loss of $19.8 million a year earlier.

Constellation Brands updated its fiscal 2027 reported EPS outlook to a range of $11.85 to $12.55. The company reaffirmed its comparable EPS outlook of $11.20 to $11.90, an operating cash flow target of $2.4 billion to $2.5 billion, and a free cash flow target of $1.6 billion to $1.7 billion.

In a separate release on Monday, Constellation Brands announced the acquisition of SpikedAde, a spirit-based ready-to-drink beverage brand. The transaction includes a $75 million payment at close for 100% ownership, plus contingent consideration of up to $278 million payable over five years based on future performance.

Founder and CEO of SpikedAde Jason Cohen said, "When we created SpikedAde, it was with the goal of helping define a new era for RTDs – one that meets consumers where performance, lifestyle, and social energy intersect – and our team and distributor partners turned that vision into reality faster than we ever imagined."

Additionally, the company's board of directors declared a quarterly cash dividend of $1.03 per share of Class A Common Stock. The dividend is payable on November 13, 2026, to stockholders of record as of the close of business on October 30, 2026.