Constellation raises reported FY2027 EPS outlook as Beer depletions slip
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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.
| Second-quarter measure | Result | Year-over-year change |
|---|---|---|
| Net sales | $2.633 billion | +6% |
| Reported operating income | $805 million | -8% |
| Comparable operating income | $897 million | +1% |
| Reported EPS | $3.32 | +25% |
| Comparable EPS | $3.74 | +3% |
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.
Sources
- October 6, 2026 – EX-99.1 – 8-K: Current report, Constellation Brands, Inc.
- Constellation Brands Announces Acquisition of Spirit-Based Ready-to-Drink Brand SpikedAde, Constellation Brands, Inc.
- ir.cbrands.com
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