Constellation Brands Q2 comparable EPS rises to $3.74 as beer sales grow 5%; buys SpikedAde

Constellation Brands grew sales and earnings in its fiscal second quarter, helped by higher beer shipments and a rebound in wine and spirits, and held its full-year profit outlook in place. The Corona and Modelo importer reported results after the market closed Tuesday.

Net sales rose 6% to $2.63 billion for the quarter ended Aug. 31, from $2.48 billion a year earlier. Comparable earnings per share came in at $3.74, up 3%, while reported EPS climbed 25% to $3.32.

Reported operating income fell 8% to $805 million. On a comparable basis, operating income edged up 1% to $897 million.

The beer business, by far the largest segment, posted a 5% increase in net sales to $2.47 billion on a 5.5% rise in shipments. Depletions slipped 0.6% as Modelo Especial fell about 2% and Corona Extra about 5%, offset in part by growth from Pacifico, Victoria and the Modelo Chelada brands. Beer operating margin narrowed 160 basis points to 39.0%, with the company pointing to higher marketing investment and other SG&A spending.

Wine and spirits net sales jumped 17% to $159.4 million, and the segment swung to a $6.1 million operating profit from a $19.8 million loss a year earlier.

"We have sharpened our execution and increased investment across the business, and are beginning to see early returns," President and CEO Nicholas Fink said in the release.

For fiscal 2027, Constellation reaffirmed comparable EPS guidance of $11.20 to $11.90 and updated its reported EPS outlook to $11.85 to $12.55. It kept targets of $2.4 billion to $2.5 billion in operating cash flow and $1.6 billion to $1.7 billion in free cash flow.

Separately, the company said it acquired SpikedAde, a vodka-based ready-to-drink brand in the sports drink-inspired "Ade" segment, for $75 million at close plus up to $278 million in contingent payments over five years tied to the brand's performance. Constellation said the deal does not change its fiscal 2027 outlook.

The board declared a quarterly dividend of $1.03 per Class A share, payable Nov. 13 to holders of record Oct. 30. The company said it has repurchased $530 million of stock year to date through September.

Constellation shares closed at $115.67 Tuesday, up 2.1%, ahead of the report.

By the numbers

• Net sales: $2.63 billion, up 6%
• Comparable EPS: $3.74, up 3% (reported: $3.32, up 25%)
• Beer net sales: $2.47 billion, up 5%; depletions down 0.6%
• Wine and spirits net sales: $159.4 million, up 17%
• FY27 comparable EPS outlook: $11.20 to $11.90 (reaffirmed)
• SpikedAde: $75 million at close, up to $278 million contingent

Sources

1. Constellation Brands, Inc. Form 8-K (Items 2.02, 7.01, 9.01), filed Oct. 6, 2026, accession 0000016918-26-000039
2. Constellation Brands Q2 fiscal 2027 earnings release, Exhibit 99.1
3. Constellation Brands press release on the SpikedAde acquisition, Exhibit 99.2

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