Constellation Brands has reported solid earnings for the second quarter of fiscal year 2026. The results outperformed Wall Street expectations, although the company has adjusted its full-year guidance.
Key Financial Highlights
In the recently released earnings report, Constellation Brands announced the following:
- Earnings per Share: $3.63 adjusted, exceeding the expected $3.38.
- Revenue: $2.48 billion, slightly higher than the anticipated $2.46 billion.
- Net Income: $466 million, or $2.65 per share, compared to a loss of $1.2 billion, or $6.59 per share, from the previous year.
- Sales Drop: Net sales decreased by 15% from the same quarter last year.
- Operating Margin: Fell by 200 basis points, attributed partially to aluminum tariffs.
CEO’s Commentary
CEO Bill Newlands expressed concerns regarding the challenging socioeconomic environment. He stated, “While we continue to navigate a challenging socioeconomic environment that has dampened consumer demand, our teams remain focused on executing against our strategic objectives.”
Adjusted Full-Year Guidance
In September, the company lowered its full fiscal year guidance. The revised outlook estimates earnings per share of between $11.30 and $11.60, down from a previous range of $12.60 to $12.90. Additionally, the forecast for organic net sales has changed, now predicting a decline of 4% to 6%, rather than the prior expectations of 1% growth to a 2% decline.
Market Trends and Consumer Behavior
Constellation Brands has noted a decrease in demand among Hispanic consumers. Concerns regarding immigration policies and potential job losses have been cited as contributing factors to this trend.
Upcoming Analyst Call
Constellation executives will discuss the earnings results and market outlook in an analyst call scheduled for 8 a.m. ET tomorrow.
