Constellation raises reported FY2027 EPS outlook as Beer depletions slip

Constellation Brands raised its fiscal 2027 outlook for reported earnings per share to $11.85-$12.55 after second-quarter net sales rose 6% to $2.633 billion. The company reaffirmed its comparable EPS guidance at $11.20-$11.90. In the Beer business, net sales increased 5%, while depletions declined 0.6% from a year earlier.

The company reported results Oct. 6 for the quarter ended Aug. 31. Its reported and comparable measures showed different patterns in operating income and earnings per share.

Reported and comparable operating income moved in opposite directions, while both reported and comparable EPS increased, by different amounts. Constellation identifies comparable figures as non-GAAP measures; they are distinct from its reported results. The results therefore show increases in sales and both EPS measures alongside a decline in reported operating income.

Beer and Wine and Spirits results diverged

Beer shipments rose 5.5% year over year and Beer operating income increased 1%, in addition to the 5% gain in Beer net sales. Depletions, however, fell 0.6%. The mix of results means the reported growth in Beer sales and shipments did not coincide with an increase in depletions.

Wine and Spirits net sales rose 17%, and depletions increased 10.2%. The business reported operating income of $6.1 million, compared with an operating loss of $19.8 million in the same quarter a year earlier.

For the year to date, operating cash flow was $1.5 billion, down 1% year over year. Free cash flow was $1.1 billion, up 4%. Those measures changed in different directions over the period.

Outlook, acquisition and shareholder dates

The updated $11.85-$12.55 range applies to reported fiscal 2027 EPS. The separate comparable EPS outlook remains $11.20-$11.90. Constellation said the SpikedAde acquisition, completed after the quarter, does not affect its fiscal 2027 outlook.

The company said it paid $75 million at closing for full ownership of SpikedAde. It may also pay up to $278 million in additional contingent consideration over five years, depending on the business’s future performance. The potential additional amount is not a guaranteed payment.

Constellation’s board declared a quarterly cash dividend of $1.03 per Class A share. The dividend is payable Nov. 13 to shareholders of record Oct. 30.

Chief Executive Nicholas Fink and Chief Financial Officer Garth Hankinson were scheduled to hold a results-and-outlook call on Oct. 7, 2026, at 8 a.m. Eastern time, the day after the results announcement.