How did Constellation perform in the second quarter of fiscal 2027?

Net sales rose 6% to $2,633 million and reported EPS was $3.32, up from $2.65. Reported operating income declined to $805 million from $874 million, while comparable EPS rose to $3.74 from $3.63 and comparable operating income was $897 million.

Did the company change its fiscal 2027 guidance?

The reported EPS outlook was updated to $11.85 to $12.55. The comparable EPS outlook of $11.20 to $11.90, the operating cash flow target of $2.4 to $2.5 billion, and the free cash flow target of $1.6 to $1.7 billion were reaffirmed.

What are the financial terms of the SpikedAde acquisition?

The company paid $75 million at close for 100% ownership, with additional contingent consideration of up to $278 million payable over five years based on the brand's future performance. The company states the acquisition does not impact its fiscal 2027 outlook.

What drove the performance of the Beer and Wine and Spirits businesses?

Beer net sales increased 5% on a 5.5% rise in shipments, though depletions fell 0.6% amid declines in Modelo Especial and Corona Extra. Wine and Spirits net sales rose 17% on a 15.4% rise in shipments, with depletions up 10.2% driven by Kim Crawford and Mi CAMPO.

STZ 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed October 6, 2026. Cited figures are marked; the original filing is the authoritative source.

Constellation Brands, Inc. filed this Form 8-K on October 6, 2026 to furnish its earnings release for the second fiscal quarter ended August 31, 2026, along with a release announcing the completed acquisition of SpikedAde and a declared quarterly dividend.

Second-quarter reported net sales were $2,633 million^a, up 6% from $2,481 million, with reported operating income of $805 million (down from $874 million) and reported EPS of $3.32 (versus $2.65). Comparable EPS was $3.74, compared with $3.63 a year earlier, and comparable operating income was $897 million. Beer net sales rose 5% to $2,473.6 million, while Wine and Spirits net sales rose 17% to $159.4 million, with depletions up 10.2%.

The company updated its fiscal 2027 reported EPS outlook to $11.85 to $12.55^b and reaffirmed its comparable EPS outlook of $11.20 to $11.90, operating cash flow target of $2.4 to $2.5 billion, and free cash flow target of $1.6 to $1.7 billion. Year-to-date operating cash flow was $1,478.6 million and free cash flow was $1,124.5 million. The company repurchased $530 million of shares year-to-date through September 2026, and its CEO noted returns of more than $800 million to shareholders through share repurchases and dividends in the first half.

The SpikedAde acquisition included a $75 million^c payment at close and contingent consideration of up to $278 million payable over five years. The company stated the acquisition does not affect its fiscal 2027 outlook. The board also declared a quarterly dividend of $1.03 per Class A share and $0.93 per Class 1 Convertible share, payable November 13, 2026.

02—Key points

Key Highlights

Reported Q2 FY2027 EPS of $3.32 (up 25%) and comparable EPS of $3.74 (up 3%); reported operating income fell 8% to $805 million
Beer net sales grew 5% to $2,473.6 million on a 5.5% increase in shipments, though depletions declined 0.6%; Beer operating margin decreased 160 bps to 39.0%
Wine and Spirits net sales rose 17% to $159.4 million, depletions grew 10.2%, and operating income improved to $6.1 million from a loss of $19.8 million
Reported fiscal 2027 EPS outlook updated to $11.85 to $12.55; comparable EPS outlook of $11.20 to $11.90 reaffirmed
Year-to-date operating cash flow of $1,478.6 million and free cash flow of $1,124.5 million; $530 million of shares repurchased year-to-date through September 2026
Acquired SpikedAde, a spirit-based RTD brand, for a $75 million payment at close plus up to $278 million of contingent consideration over five years
Declared quarterly dividend of $1.03 per Class A share and $0.93 per Class 1 Convertible share, payable November 13, 2026

03—Questions

Frequently Asked Questions

How did Constellation perform in the second quarter of fiscal 2027?
Net sales rose 6% to $2,633 million and reported EPS was $3.32, up from $2.65. Reported operating income declined to $805 million from $874 million, while comparable EPS rose to $3.74 from $3.63 and comparable operating income was $897 million.
Did the company change its fiscal 2027 guidance?
The reported EPS outlook was updated to $11.85 to $12.55. The comparable EPS outlook of $11.20 to $11.90, the operating cash flow target of $2.4 to $2.5 billion, and the free cash flow target of $1.6 to $1.7 billion were reaffirmed.
What are the financial terms of the SpikedAde acquisition?
The company paid $75 million at close for 100% ownership, with additional contingent consideration of up to $278 million payable over five years based on the brand's future performance. The company states the acquisition does not impact its fiscal 2027 outlook.
How is Constellation returning capital to shareholders?
The company repurchased $530 million of shares year-to-date through September 2026 and declared a quarterly dividend of $1.03 per Class A share and $0.93 per Class 1 Convertible share, payable November 13, 2026 to holders of record as of October 30, 2026.
What drove the performance of the Beer and Wine and Spirits businesses?
Beer net sales increased 5% on a 5.5% rise in shipments, though depletions fell 0.6% amid declines in Modelo Especial and Corona Extra. Wine and Spirits net sales rose 17% on a 15.4% rise in shipments, with depletions up 10.2% driven by Kim Crawford and Mi CAMPO.

04—Continue

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