Constellation Brands beats estimates and raises full-year profit outlook

Shares rise 3.2% to $116.95 after Constellation Brands posts stronger quarterly results and lifts its reported earnings guidance.

Constellation Brands reported second-quarter earnings of $3.74 a share, $0.14 above estimates. Revenue came in at $2.63 billion, ahead of the $2.57 billion expected. Shares rose 1.1% on the news and were last trading up 3.2% at $116.95.

The company raised its fiscal 2027 reported earnings outlook to a range of $11.85 to $12.55 a share. It reaffirmed its comparable earnings outlook of $11.20 to $11.90 a share, along with operating cash flow guidance of $2.4 billion to $2.5 billion and free cash flow guidance of $1.6 billion to $1.7 billion. The board declared a quarterly dividend of $1.03 a share, payable November 13, 2026.

President and CEO Nicholas Fink said sharper execution and increased investment drove accelerating dollar and volume share gains across both the Beer and Wine & Spirits businesses during the quarter. Constellation also completed its acquisition of SpikedAde, a spirit-based ready-to-drink brand, paying $75 million at close with up to $278 million more in contingent consideration.

The results sit against guidance management set only last month, when it pointed to flat-to-down sales and cautious demand. Fink's comments on accelerating share gains, paired with reaffirmed comparable earnings and cash flow targets, suggest that earlier guidance was conservative rather than a sign of weakening demand. The SpikedAde purchase also came shortly after Constellation arranged a $300 million delayed draw term loan, pairing a cash-funded bolt-on deal with financing that had been described as being kept in reserve for general corporate purposes.