01.07.2025 22:10

Constellation Brands, Inc. (STZ) reported disappointing first-quarter fiscal year 2026 (FY26) results, falling short of analysts' expectations. The company's adjusted earnings per share (EPS) reached $3.22, slightly below the anticipated $3.31, while reported EPS came in at a lower $2.90. This underperformance underscored a challenging quarter for the beverage giant.


Revenue also missed projections, declining by 5.5% year-over-year (YoY) to $2.52 billion, against a forecast of $2.55 billion. This revenue shortfall stemmed from a confluence of factors, primarily impacting profit margins and shipment volumes. Key among these were the ongoing impact of aluminum tariffs and a slowdown in beer demand, particularly within the Hispanic consumer segment.


A significant contributor to the reduced revenue was a 3.3% drop in beer shipments. This decline was heavily influenced by weaker-than-expected sales amongst Hispanic consumers, a key demographic for Constellation Brands. The combination of these economic headwinds significantly impacted the company's overall performance during the quarter.


Despite the underwhelming Q1 results, Constellation Brands maintained its full-year FY26 guidance. The company reaffirmed its EPS projection to land between $12.60 and $12.90, suggesting confidence in a rebound over the remaining quarters. This forecast demonstrates a belief that the current headwinds are temporary and that the company's long-term outlook remains positive. This guidance, however, is subject to unforeseen market changes and economic conditions. Investors will be closely monitoring the company's performance in the coming quarters to ascertain whether this positive outlook is justified.