Constellation Brands (STZ) STZ Financial Results Summary
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Constellation Brands, Inc. (STZ) Q3 2026 Financial Results Summary
On January 7, 2026, Constellation Brands, Inc. released its financial results for the third quarter of its fiscal year 2026 (Q3 FY 2026). Below is a summary of the key financial metrics and findings from the report:
Financial Highlights
- Net Sales:
- Reported: $2.223 billion (down 10% from Q3 FY 2025)
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Organic Net Sales: $2.223 billion (down 2% from Q3 FY 2025)
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Operating Income:
- Reported: $692 million (down 13% from Q3 FY 2025)
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Comparable Operating Income: $739 million (flat from Q3 FY 2025)
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Net Income:
- Attributable to CBI: $503 million (down 18% from Q3 FY 2025)
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Comparable Net Income: $534 million (down 10% from Q3 FY 2025)
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Earnings Per Share (EPS):
- Reported: $2.88 (down 15% from Q3 FY 2025)
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Comparable: $3.06 (down 6% from Q3 FY 2025)
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Operating Cash Flow:
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Year-to-date: $2.1 billion
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Free Cash Flow:
- Year-to-date: $1.45 billion
Business Segment Performance
Beer
- Net Sales: $2.010 billion (down 1% from Q3 FY 2025)
- Depletions: Decreased 3% overall, with key brands:
- Modelo Especial: down 4%
- Corona Extra: down 9%
- Pacifico and Victoria: grew over 15% and 13%, respectively.
- Operating Margin: Improved to 38.0% (up 10 basis points yr/yr)
Wine and Spirits
- Net Sales: $213 million (down 51% from Q3 FY 2025)
- Shipment Volumes: Decreased 70.6% reflecting strategic shifts due to the SVEDKA Divestiture and 2025 Wine Divestitures.
- Operating Margin: Decreased to 15.8% (down from 22.1% yr/yr)
Shareholder Returns
- Share Repurchase: Constellation repurchased $220 million in shares during the quarter, totaling $824 million YTD.
- Quarterly Dividend: The board declared a quarterly cash dividend of $1.02 per share of Class A Common Stock, payable on February 12, 2026.
Outlook
- The company updated its fiscal year 2026 EPS outlook:
- Reported EPS: Projected to be between $9.72 – $10.02
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Comparable EPS: Estimated at $11.30 – $11.60
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Operating Cash Flow target for FY 2026 is expected to be between $2.5 – $2.6 billion with Free Cash Flow projected at $1.3 – $1.4 billion.
Key Challenges & Strategic Initiatives
- The operating environment remains challenging, in line with expectations.
- The Beer Business is outperforming the industry, gaining market share.
- Strategic investments are ongoing in modular brewery expansions and restructuring initiatives to improve efficiency and reduce costs, supporting long-term performance goals.
In summary, while Constellation Brands faced challenges in Q3 FY 2026 reflected in lower sales and income compared to the previous year, the company managed to maintain its operating cash flow and return a significant amount to shareholders through dividends and share repurchases. The company aims to navigate through the current market challenges while positioning itself for sustainable growth.
| Three Months Ended | November 30, 2025 | November 30, 2024 | November 30, 2025 | November 30, 2024 |
|---|---|---|---|---|
| NET INCOME (LOSS) ATTRIBUTABLE TO CBI | ||||
| Sales | $2,374.4 | $2,644.4 | $7,705.8 | $8,644.2 |
| Excise taxes | -151.6 | -180.6 | -487.0 | -599.7 |
| Net sales | $2,222.8 | $2,463.8 | $7,218.8 | $8,044.5 |
| Cost of product sold | -1,039.6 | -1,179.5 | -3,459.0 | -3,844.6 |
| Gross profit | $1,183.2 | $1,284.3 | $3,759.8 | $4,199.9 |
| Selling, general, and administrative expenses | -491.2 | -491.3 | -1,427.9 | -1,444.7 |
| Goodwill impairment | — | — | — | -2,250.0 |
| Asset impairment and related expenses | — | — | -52.1 | — |
| Operating income (loss) | $692.0 | $793.0 | $2,279.8 | $505.2 |
| Income (loss) from unconsolidated investments | 23.5 | -15.0 | 16.5 | 65.8 |
| Interest expense, net | -83.2 | -104.4 | -269.7 | -311.2 |
| Income (loss) before income taxes | $632.3 | $673.6 | $2,026.6 | $259.8 |
| (Provision for) benefit from income taxes | -110.1 | -44.5 | -494.5 | 79.7 |
| Net income (loss) | $522.2 | $629.1 | $1,532.1 | $339.5 |
| Net (income) loss attributable to noncontrolling interests | -19.4 | -13.2 | -47.2 | -45.6 |
| Net income (loss) attributable to CBI | $502.8 | $615.9 | $1,484.9 | $293.9 |
| CLASS A COMMON STOCK | ||||
| Net income (loss) per common share attributable to CBI – basic | $2.88 | $3.40 | $8.43 | $1.61 |
| Net income (loss) per common share attributable to CBI – diluted | $2.88 | $3.39 | $8.43 | $1.61 |
| Weighted average common shares outstanding – basic | 174.515 | 181.243 | 176.051 | 181.988 |
| Weighted average common shares outstanding – diluted | 174.614 | 181.753 | 176.189 | 182.555 |
| Cash dividends declared per common share | $1.02 | $1.01 | $3.06 | $3.03 |
| November 30, 2025 | February 28, 2025 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $152.4 | $68.1 |
| Accounts receivable | $708.3 | $736.5 |
| Inventories | $1,379.2 | $1,437.2 |
| Prepaid expenses and other | $669.2 | $561.1 |
| Assets held for sale | — | $913.5 |
| Total current assets | $2,909.1 | $3,716.4 |
| Property, plant, and equipment, net | $8,211.5 | $7,409.8 |
| Goodwill | $5,190.6 | $5,126.8 |
| Intangible assets | $2,532.7 | $2,532.3 |
| Deferred income taxes | $1,569.0 | $1,805.3 |
| Other assets | $1,270.5 | $1,061.7 |
| Total assets | $21,683.4 | $21,652.3 |
| LIABILITIES AND STOCKHOLDER’S EQUITY | ||
| Current liabilities: | ||
| Short-term borrowings | $374.7 | $806.7 |
| Current maturities of long-term debt | $4.0 | $1,402.0 |
| Accounts payable | $976.5 | $939.8 |
| Other accrued expenses and liabilities | $818.0 | $886.7 |
| Total current liabilities | $2,173.2 | $4,035.2 |
| Long-term debt, less current maturities | $10,285.1 | $9,289.0 |
| Deferred income taxes and other liabilities | $1,224.8 | $1,193.3 |
| Total liabilities | $13,683.1 | $14,517.5 |
| CBI stockholders’ equity | $7,710.8 | $6,882.0 |
| Noncontrolling interests | $289.5 | $252.8 |
| Total stockholders’ equity | $8,000.3 | $7,134.8 |
| Total liabilities and stockholders’ equity | $21,683.4 | $21,652.3 |