Constellation Brands Q2 FY2027: sales up 6.1%, comparable EPS guidance flat
Constellation Brands grew net sales 6.1% to $2.633 billion and GAAP EPS 25.0% to $3.32, but comparable EPS rose only 3.0% and full-year comparable guidance sits below last year's actual. Read the quarter as share gains plus a tax-rate tailwind, not an earnings inflection. Beer is 93.9% of revenue, so beer depletion trends decide the story.
1 · Expected vs. Actual
Free preview belowGAAP EPS was $3.32 versus $2.65, a 25.0% jump, but comparable EPS was $3.74, up just 3.0% from $3.63. The $0.42 gap is mostly $49.8 million of asset impairment and related charges plus restructuring and divestiture items. The GAAP gain also leans on a 20.2% tax rate versus 37.9% a year ago, so the bottom line grew faster than operations.
Net sales rose 6.1% to $2.633 billion from $2.481 billion, with gross margin essentially flat at 52.9%. Beer brought in $2.4736 billion, up 5%, on 5.5% more shipments, while Wine and Spirits added $159.4 million, up 17%. The small segment is only 6.1% of revenue, so this was a beer quarter.
Management reaffirmed comparable EPS of $11.20-$11.90 against the $11.82 actually earned last year, so the $11.55 midpoint implies a slight decline. Reported EPS guidance was updated to $11.85-$12.55, but that flatters the comparison because last year's $9.61 carried heavy one-off charges. Net sales guidance of $8.910-$9.090 billion and free cash flow of $1.6-$1.7 billion were left unchanged.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-10-07
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