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Nov 30, 2025
Constellation Brands Q3 2026 Earnings Report
Constellation Brands reported Q3 2026 results with lower revenue and earnings amid significant Wine & Spirits divestitures.
Key Takeaways
Constellation Brands faced a 10% revenue drop in Q3 FY26 due to large-scale divestitures in its Wine & Spirits business, but maintained solid performance in its Beer segment. Operating income held steady on a comparable basis, while net income declined.
Revenue declined 10% YoY to $2.22B, primarily due to Wine & Spirits divestitures.
Beer segment remained resilient with $2.01B in revenue and a 38.0% operating margin.
Net income dropped to $503M while comparable EPS came in at $3.06.
Free cash flow remained strong at $1.45B, supporting share repurchases and dividends.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Constellation Brands reaffirmed its FY26 EPS guidance and expects continued investment in beer capacity despite Wine & Spirits headwinds.
Positive Outlook
- FY26 comparable EPS outlook reaffirmed at $11.30 to $11.60
- Beer business expected to grow with continued margin strength
- Operating cash flow guided between $2.5B and $2.6B
- Free cash flow projected between $1.3B and $1.4B
- Beer capex to expand brewing capacity by 55M HL by FY28
Challenges Ahead
- Wine & Spirits organic sales expected to decline 17% to 20%
- Wine & Spirits operating income expected to drop 97% to 100%
- Enterprise operating income expected to decline 9% to 11% on a comparable basis
- Marketing and SG&A remain elevated in Wine & Spirits despite restructuring
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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