Beer, wine, and spirits company Constellation Brands (NYSE: STZ) announced better-than-expected revenue in Q1 CY2026, but sales fell by 11.3% year on year to $1.92 billion. On the other hand, the company’s full-year revenue guidance of $9 billion at the midpoint came in 1.6% below analysts’ estimates. Its non-GAAP profit of $1.90 per share was 10.9% above analysts’ consensus estimates.
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Constellation Brands (STZ) Q1 CY2026 Highlights:
- Revenue: $1.92 billion vs analyst estimates of $1.88 billion (11.3% year-on-year decline, 2.4% beat)
- Adjusted EPS: $1.90 vs analyst estimates of $1.71 (10.9% beat)
- Adjusted EBITDA: $573.4 million vs analyst estimates of $606 million (29.9% margin, 5.4% miss)
- Adjusted EPS guidance for the upcoming financial year 2027 is $11.55 at the midpoint, missing analyst estimates by 6.6%
- Operating Margin: 23%, up from -6.9% in the same quarter last year
- Free Cash Flow Margin: 17.9%, up from 14.4% in the same quarter last year
- Organic Revenue was flat year on year (beat)
- Market Capitalization: $26.67 billion
Company Overview
With a presence in more than 100 countries, Constellation Brands (NYSE: STZ) is a globally renowned producer and marketer of beer, wine, and spirits.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.
With $9.14 billion in revenue over the past 12 months, Constellation Brands is one of the larger consumer staples companies and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because it’s harder to find incremental growth when your existing brands have penetrated most of the market. To expand meaningfully, Constellation Brands likely needs to tweak its prices, innovate with new products, or enter new markets.
As you can see below, Constellation Brands’s demand was weak over the last three years. Its sales fell by 1.1% annually, a poor baseline for our analysis.
This quarter, Constellation Brands’s revenue fell by 11.3% year on year to $1.92 billion but beat Wall Street’s estimates by 2.4%.
Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. Although this projection indicates its newer products will spur better top-line performance, it is still below the sector average.
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Organic Revenue Growth
When analyzing revenue growth, we care most about organic revenue growth. This metric captures a business’s performance excluding one-time events such as mergers, acquisitions, and divestitures as well as foreign currency fluctuations.
The demand for Constellation Brands’s products has barely risen over the last eight quarters. On average, the company’s organic sales have been flat. 
In the latest quarter, Constellation Brands’s year on year organic sales were flat. This performance was more or less in line with its historical levels.
Key Takeaways from Constellation Brands’s Q1 Results
We were impressed by how significantly Constellation Brands blew past analysts’ organic revenue expectations this quarter. We were also happy its revenue outperformed Wall Street’s estimates. On the other hand, its EBITDA missed and its full-year EPS guidance fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 2.1% to $147.76 immediately following the results.
Constellation Brands underperformed this quarter, but does that create an opportunity to invest right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
