Constellation Brands Reports Strong Q1 EPS Growth, $324M Share Buyback, and Raised FY27 Reported EPS Outlook
STZ is trading near its 52-week low of $126.45 (11% above the low) on elevated volume (2.0× avg).
Summary
Constellation Brands reported strong Q1 earnings with significant EPS growth and cash flow, alongside a substantial share repurchase program and an updated fiscal 2027 reported EPS outlook.
Key Events · Earnings and Guidance · STZ
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Strong Q1 EPS Growth
Reported EPS increased 31% to $3.79, and comparable EPS rose 7% to $3.43 for the first fiscal quarter ended May 31, 2026.
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Significant Share Repurchases
The company repurchased $324 million of shares year-to-date through June 2026.
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Updated FY27 Reported EPS Outlook
Fiscal 2027 reported EPS guidance was updated to $11.50 - $12.20, a notable increase from FY26 actuals, while comparable EPS guidance was affirmed at $11.20 - $11.90.
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Robust Cash Flow Generation
Operating cash flow increased 4% to $662 million, and free cash flow rose 9% to $485 million.
Analysis · STZ · Manufacturing
Constellation Brands delivered strong first-quarter results, with reported EPS increasing by 31% and comparable EPS by 7%. The company also reported robust cash flow generation and executed a significant $324 million in share repurchases. While reported net sales declined due to prior divestitures, organic net sales grew by 3%, driven by strong performance in the beer segment. The company updated its fiscal 2027 reported EPS outlook, indicating a positive trajectory, though comparable EPS guidance was affirmed at a level slightly below the prior year.
At the time of this filing, STZ was trading at $140.90 on NYSE in the Manufacturing sector, with a market capitalization of approximately $23.9B. The 52-week trading range was $126.45 to $178.14. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.