Constellation Brands sees fiscal 2027 sales roughly flat to down after wine exit

The company's new earnings range sits close to last year's actual profit, with beer depletions weighing on the outlook.

Constellation Brands guided fiscal 2027 adjusted earnings per share to a range of $11.20 to $11.90 and forecast enterprise organic net sales growth of between -1% and +1% for the year.

The update revises a fiscal 2027 outlook the company had already issued, according to an SEC filing, and withdraws the fiscal 2028 outlook Constellation gave in April 2025. That same filing ties the sales range to the exclusion of $142 million in revenue tied to a March to June 2025 period no longer counted after the company's 2025 wine divestitures. 24/7 Wall St. reported Monday that the bulk of the company's revenue decline traces to those divestitures rather than to beer.

Beer remains the bigger swing factor. Yahoo Finance reported Monday that depletions of Modelo Especial fell 2% and Corona Extra dropped 5%, calling the decline the biggest risk to Constellation's margin story, a shift from the 1.8% shipment growth the company posted a quarter earlier, according to 24/7 Wall St. The new EPS range sits just below the $11.82 Constellation posted in comparable earnings for fiscal 2026, putting the midpoint of the new guidance roughly flat to down against that result, according to the SEC filing.

The flat-to-negative sales outlook, with its low end in negative territory, suggests management has not yet seen a turn in demand across beer, wine and spirits after a stretch of soft volumes. That comes as Constellation lines up a $300 million delayed draw term loan for general corporate purposes, including debt repayment, a pairing that points to a company tending to its balance sheet while top-line growth stalls rather than funding expansion. The width of the earnings range, a full $0.70 between its low and high ends, leaves room for further volume or cost pressure to surface during the year.