EARNINGS RECAP: CONSTELLATION BRANDS FIRST QUARTER FISCAL YEAR 2027

June 30, 2026

  • Delivers EPS Growth Driven by Improved Net Sales and Operating Income Performance
  • Continues to Deliver Leading Dollar Share Gains in Beer Category Across U.S. Tracked Channels
  • Returns Over $400 Million to Shareholders Through Share Repurchases and Dividends
    To access the full earnings release and CEO and CFO commentary, click here.
Row Labels Net Sales(1) Organic
Net Sales 		Operating
Income (Loss)(1) 		EPS
First Quarter Fiscal Year 2027 Financial Highlights(1) | In millions, except per share data
Reported $2,433 $2,433 $845 $3.79
% Change (3%) (3%) 18% 31%
Comparable $2,433 $2,433 $834 $3.43
% Change (3%) 3% 6% 7%
Note: A list of defined terms, including definitions of reported, comparable, and organic as well as reconciliations of non-GAAP financial measures, are contained in the earnings release. Comparable and organic amounts are non-GAAP financial measures.
(1)Three months ended May 31, 2025, includes (i) $142.0 million of net sales and (ii) $24.5 million of CAM that are no longer part of the Wine and Spirits segment results due to the 2025 Wine Divestitures.

U.S. CONSUMER BACKDROP - FIRST QUARTER FISCAL YEAR 2027

Consumer purchasing behavior remained dynamic throughout the quarter, as persistent inflation and broader economic uncertainty continued to shape spending patterns. The cumulative effects of a multi-year inflation cycle were further compounded by a significant increase in gas prices in the U.S., which rose more than 50% on average nationally from the beginning of the quarter. While the Company saw a resurgence of purchasing behavior amidst a more normalized start to the quarter, these financial pressures then drove a more discerning and value-conscious consumer mindset, most notably within lower-income households, contributing to a deceleration in retail food and beverage volume trends as the quarter progressed.

FIRST QUARTER FISCAL YEAR 2027 HIGHLIGHTS

  • Net Sales: $2,433 million
  • Operating Income and Comparable Operating Income: $845 million and $834 million, respectively.
  • Cash Flow: Generates operating cash flow of $662 million and free cash flow of $485 million.
  • Beer Business: Delivers both net sales and operating income growth of 2% and continues to lead the category in dollar share gains, outperforming the total beer category by nearly 3 percentage points in year-over-year dollar sales across Circana U.S. tracked channels.
  • Wine and Spirits Business: Reports net sales decline of 47% and delivers organic net sales and depletions growth of 8% and 6.6%, respectively, outperforming the total wine and spirits category in both dollar and volume sales in Circana U.S. tracked channels as the wine portfolio was the #2 dollar share gainer in the total wine category.
  • Shareholder Returns: Company repurchases $324 million of shares year-to-date through June 2026 and declares a quarterly cash dividend of $1.03 per share of Class A Common Stock.
    • Nicholas Fink
    “Our portfolio continues to benefit from the strength of our brands, disciplined commercial execution, and our ability to connect with consumers across a broad range of occasions. Despite a discerning and value-conscious consumer environment, we grew Enterprise organic net sales and gained share during the first quarter of fiscal 2027. As we continue to deepen our understanding of evolving consumer needs and invest behind our strategic priorities, we believe that we remain well positioned to drive sustainable organic growth while maintaining healthy investment in our brands.”

    Nicholas Fink - President and Chief Executive Officer

    Garth Hankinson
    “Our strong free cash flow generation enabled us to execute against our capital allocation priorities, including returning over $400 million to shareholders through share repurchases and dividends, all while holding to our target comparable net leverage ratio of ~3.0x and continuing to progress on the build out of our third brewery at Veracruz. We are confident in our ability to generate strong cash flow, allowing us to balance investments for growth with shareholder returns, while remaining committed to our disciplined and balanced capital allocation approach.”

    Garth Hankinson - Executive Vice President and Chief Financial Officer

    Beer business

    Row Labels Shipments Depletions Net Sales Operating
    Income (Loss)
    Three Months Ended | In millions; branded product, 24-pack, 12-ounce case equivalents
    May 31, 2026 113.3 - $2,283.5 $891.4
    May 31, 2025 111.3 - $2,234.5 $873.4
    % Change 1.8% (0.3%) 2% 2%

    BEER HIGHLIGHTS - FIRST QUARTER FISCAL YEAR 2027

    The Company's Beer Business delivered low-single-digit net sales and shipment volume growth, and slightly negative depletions, underpinned by mid-single digit growth in points of distribution and continued marketing investment to support the health and equity of its brand portfolio. The Company’s brands continue to resonate in the marketplace, as brand-health and loyalty metrics remain strong and its portfolio’s affinity amongst Hispanic consumers remains the highest relative to other major beer suppliers in the U.S.

    Across Circana U.S. tracked channels, the Company’s Beer Business was the #1 dollar share gainer during the quarter, capturing 0.6 points of dollar share in the total beer category. The Company's Beer Business had 5 of the top 15 dollar share gaining brands across the total beer category and continued to be the #1 high-end beer supplier in the U.S. by dollar sales.

    Depletions declined modestly by 0.3%, as the strong start to the year the Company saw in March was followed by softer volumes during April and May. This was consistent in markets with larger Hispanic populations as well as more general market zip codes, as increasing pressure on the U.S. consumer during the quarter impacted takeaway trends more broadly.

    FIRST QUARTER FISCAL YEAR 2027 HIGHLIGHTS
    • Net sales increased 2% driven by a 1.8% increase in shipment volumes and continued favorable pricing.
    • Operating margin remained relatively flat year-over-year at 39.0% as growth in shipment volumes and favorable pricing were offset by unfavorable mix and higher marketing and other selling, general, and administrative spend.
    • Depletions decreased 0.3% as declines for Modelo Especial of approximately 2% and Corona Extra of over 5% were partially offset by growth from Pacifico, Victoria, and the Modelo Chelada brands of approximately 21%, 14%, and 6%, respectively.
    • The Company’s Beer Business ranked as the #1 dollar share gainer in Circana U.S. tracked channels and had 5 of the top 15 dollar share gaining brands across the entire U.S. beer category:
        • Modelo Especial maintained its position as the #1 brand in dollar sales and was the #7 dollar share gainer, and within the brand family Modelo Chelada Limón y Sal was the #8 dollar share gainer;
        • Corona Extra remains a top 5 brand in dollar sales, and within the brand family Corona Familiar was the #11 dollar share gainer; and
        • Pacifico and Victoria were the #2 and #14 dollar share gainers, respectively.

    WINE AND SPIRITS BUSINESS

    Row Labels Shipments Organic
    Shipments (2)     		Depletions (2) Net Sales (1) Organic
    Net Sales     		Operating
    Income (Loss) (1)
    Three Months Ended | In millions; branded product, 9-liter case equivalents
    May 31, 2026 1.4 1.4 - $149.2 $149.2 $(1.1)
    May 31, 2025 3.9 1.3 - $280.5 $138.5 $(6.0)
    % Change (64.1%) 7.7% 6.6% (47%) 8% (82%)
    (2)Three months ended May 31, 2025, includes adjustments to remove volumes for associated with the 2025 Wine Divestitures.

    WINE AND SPIRITS HIGHLIGHTS - FIRST QUARTER FISCAL YEAR 2027

    The Company’s Wine & Spirits business delivered high-single-digit organic net sales and shipment volume growth, and mid-single-digit depletion growth, as its focused higher-end portfolio continues to display positive momentum. Across Circana U.S. tracked channels, its wine and spirits portfolio outpaced the total wine and spirits category in both dollar and volume sales, and its wine portfolio was the #2 dollar share gainer in the total wine category. Depletions grew by 6.6%, primarily driven by the strength of Kim Crawford and Mi CAMPO.

    FIRST QUARTER FISCAL YEAR 2027 HIGHLIGHTS
    • Net sales declined 47% driven by a 64.1% decrease in shipment volumes reflecting the impact of the 2025 Wine Divestitures, while organic net sales increased 8% driven by a 7.7% increase in organic shipment volumes.
    • Operating margin improved 140 basis points to (0.7%) as growth in organic shipment volumes and favorability from lower marketing and other selling, general, and administrative spend was partially offset by the impact of the 2025 Wine Divestitures.
    • Across Circana U.S. tracked channels, the Company’s wine and spirits portfolio outpaced the total wine and spirits category in both dollar and volume sales, as its wine portfolio was the #2 dollar share gainer in the total wine category.
    To access the full earnings release and CEO and CFO commentary, click here.

    This article contains non-GAAP financial measures. These and other non-GAAP financial measures, the purposes for which management uses them, why management believes they are useful to investors, and reconciliations to the most directly comparable GAAP financial measures may be found in the earnings release and at ir.cbrands.com under the Financial Info/Financial History (Non-GAAP) section. All references to profit measures and earnings per share on a comparable basis exclude items that affect comparability.

    Please see “Forward-Looking Statements” in the earnings release for a discussion of certain of the uncertainties, risks, and assumptions associated with forward-looking statements in the article.