01—Abstract
Summary
Summary of the 10-K filed April 22, 2026. Cited figures are marked; the original filing is the authoritative source.
Constellation Brands, Inc. reported consolidated net sales of $9.14 billiona for Fiscal 2026 (year ended February 28, 2026), down from $10.21 billion in Fiscal 2025, with Beer net sales of $8.32 billion and Wine and Spirits net sales of $823.8 million.
Operating income rose to $2.72 billionb from $354.9 million, largely because Fiscal 2025 included $2.80 billion of goodwill and intangible asset impairments, and net income attributable to CBI increased to $1.69 billion from a loss of $81.4 million. Beer shipments declined 3.8% to 415.4 million 24-pack, 12-ounce case equivalents, and Beer gross profit fell 4% on lower shipment volume and $58.3 million of tariffs, partially offset by $128.2 million of favorable pricing. The Wine and Spirits business was repositioned after the 2025 Wine Divestitures (June 2025, $845.9 million cash proceeds) and the SVEDKA Divestiture (January 2025).
Organic Wine and Spirits net sales declined $133.9 millionc, and the company recorded a $31.9 million loss on sale of business in Fiscal 2026. Operating cash flow was $2.67 billion, capital expenditures were $875.0 million (mostly Brewery Projects), and the company expects approximately $800 million of Fiscal 2027 capital expenditures. Capital returns and balance sheet: the company paid $715.7 million in dividends and repurchased $924.1 million of Class A Stock in Fiscal 2026.
Total debt was $10.57 billiond at February 28, 2026, down $929.2 million. Remaining availability under the $4.0 billion 2025 Authorization was $2.98 billion as of April 17, 2026.
Fiscal 2027 effective tax rate is expected to be 19% to 21%, and the company notes the OB3 Act is expected to negatively affect that rate. Nicholas Fink became President and Chief Executive Officer on April 13, 2026.
02—Key points
Key Highlights
- Net sales fell 10% to $9.14 billion, driven by the Wine and Spirits Divestitures and a 3% decline in Beer net sales to $8.32 billion.
- Operating income increased to $2.72 billion from $354.9 million, mainly because Fiscal 2025 included $2.80 billion of goodwill and intangible asset impairments; comparable operating income was $2.94 billion.
- Net income attributable to CBI was $1.69 billion, or $9.61 diluted EPS, versus a loss of $81.4 million in Fiscal 2025.
- Beer shipments declined 3.8% to 415.4 million case equivalents, while favorable pricing of $128.2 million partially offset volume and mix declines; Beer gross profit fell 4%.
- Wine and Spirits net sales declined 51% to $823.8 million after the 2025 Wine Divestitures; organic net sales fell $133.9 million.
- Operating cash flow was $2.67 billion, with capital expenditures of $875.0 million and about $800 million planned for Fiscal 2027, almost entirely for Brewery Projects.
- Total debt was $10.57 billion, down $929.2 million; the company returned $715.7 million in dividends and $924.1 million in share repurchases, with $2.98 billion remaining under the 2025 Authorization as of April 17, 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2026, Constellation Brands kept $0.18.
- Revenue$9.14B100.0%
- Cost of revenue−$4.43B48.4%
- Gross profit$4.71B51.6%
- Operating costs−$1.99B21.8%
- Operating income$2.72B29.8%
- Interest, other & tax−$1.03B11.3%
- Net income$1.69B18.5%
Where FY2026 revenue went
$9.14B- Cost of revenue: $4.43B, 48% of revenue
- SG&A: $1.85B, 20% of revenue
- Net income: $1.69B, 18% of revenue
- Other operating costs: $141.7M, 1.6% of revenue
- Interest, other & tax: $1.03B, 11% of revenue
Kept 18% as net incomeOther operating costs $141.7M · 1.6%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2026filed April 22, 2026Financial Statements
FY2026 against FY2025
| Line item | FY2026FY2025 | Change |
|---|---|---|
| Revenue | $9.14B$10.21B | −10.5% |
| Cost of Revenue | $4.43B$4.89B | −9.5% |
| Gross Profit | $4.71B$5.31B | −11.3% |
| SG&A Expenses | $1.85B$1.95B | −5.2% |
| Operating Income | $2.72B$354.90M | +666.8% |
| Net Income | $1.69B-$81.40M | +2172.1% |
05—Questions
Frequently Asked Questions
What drove the increase in operating income despite lower net sales?
Operating income rose to $2,721.4 million from $354.9 million, largely because Fiscal 2025 included $2,797.7 million of goodwill and intangible asset impairments. The filing also cites continued efficiency and cost optimization initiatives in the Beer segment, partially offset by lower net sales in both segments and Fiscal 2026 asset impairment and related expenses of $109.8 million.
How much did the Beer business change in Fiscal 2026?
Beer net sales declined 3% to $8,315.2 million, with shipments down 3.8% to 415.4 million case equivalents and depletions down 2.1%. Beer gross profit decreased 4% to $4,361.5 million, reflecting a $323.0 million decline in shipment volume and $58.3 million of Section 232 aluminum tariffs, partially offset by $128.2 million of favorable pricing.
What is the status of the Wine and Spirits business?
Wine and Spirits net sales fell 51% to $823.8 million, largely due to $711.2 million from the Wine and Spirits Divestitures. The company says it has repositioned the portfolio to exclusively higher-end brands and is pursuing operational efficiencies and tactical measures, and it expects depletion volume to outpace shipment volume in Fiscal 2027 following inventory reductions with key distributors.
What are the company's capital allocation plans?
The company declared a quarterly dividend of $1.03 per Class A share on April 8, 2026, and expects to return approximately $700 million through dividends in Fiscal 2027. The 2025 Authorization allows up to $4.0 billion of repurchases through February 2028, with $2,977.2 million remaining as of April 17, 2026. Capital expenditures are expected to be about $800 million in Fiscal 2027.
What leadership and legal developments should investors note?
Nicholas Fink became President and Chief Executive Officer on April 13, 2026, and the filing discusses transition risk. A putative securities class action (Meza v. Constellation Brands, Inc.) is pending in the Western District of New York; the amended complaint concerns beer business prospects, and a motion to dismiss was fully briefed as of December 12, 2025 and remains pending. Related derivative suits are stayed or dismissed.
06—Continue