Pacifico is doing a very similar approach. It's the #2 brand in the State of California today. It skews younger relative to our overall portfolio and really has resonated well with consumers. As you know, it's the #1 social media in terms of share of voice, and it has gained 1.5 points in the on-premise.
— William Newlands
03Detailed Report
STZ-B
Company STZ-B
Period
Q3 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 7, 2026
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Executive Summary
Constellation Brands, Inc. posted Q3 FY2026 results (quarter ending November 30, 2025) amid a persistently challenging macro backdrop and ongoing tariff/commodity headwinds. Revenue declined 9.8% year over year to $2.223 billion, with gross profit of $1.183 billion and an EBITDA of $817.9 million. Despite volume deleverage weighing on margins, management highlighted ongoing cost-savings initiatives, favorable pricing actions from the spring and fall pricing moves, and a timing-driven depreciation benefit that supported profitability in the quarter. Fixed overhead absorption in Q4—the seasonally lighter quarter—remains a pressure point, while tariff headwinds (notably aluminum) and a shift in product mix toward aluminum packaging are expected to pressure beer margins further near term.
Key Performance Indicators
Revenue
Decreasing
2.22B
QoQ: -10.41% | YoY: -9.78%
Gross Profit
Decreasing
1.18B
53.23% margin
QoQ: -9.68% | YoY: -7.87%
Operating Income
Decreasing
692.00M
QoQ: -20.82% | YoY: -12.74%
Net Income
Decreasing
502.80M
QoQ: 7.90% | YoY: -18.36%
EPS
Decreasing
2.88
QoQ: 8.68% | YoY: -15.29%
Revenue Trend
Margin Analysis
Financial Highlights
Key QQ3 2026 metrics and insights:
- Revenue: $2.223B; YoY: -9.78%; QoQ: -10.41%
- Gross Profit: $1.183B; Gross Margin: 53.23%; YoY gross profit: -7.87%; QoQ: -9.68%
- Operating Income: $0.692B; Operating Margin: 31.13%; YoY: -12.74%; QoQ: -20.82%
- Net Income: $0.503B; Net Margin: 22.62%; YoY: -18.36%; QoQ: +7.90%
- EPS: $2.88; Diluted EPS: $2.88; YoY: -15.29%; QoQ: +8.68%
- EBITDA: $0.818B; EBITDA Margin (EBITDA/Revenue): ~36.8%
- Free Cash Flow (FCF): $370.9M; Operating Cash Flow: $616.9M; Capex: $246.0M
- Balance sheet highlights: Total assets $21.68B; Total liabilities $13.68B; Total stockholders’ equity $7.71B; Net Debt $10.51B; Cash & cash equivalents $152.4M
- Liquidity and leverage: Current ratio ~1.34x; Net debt to EBITDA approximately 12.9x (using Q3 2026 LTM-like subset)
- Key commentary: Management reiterates long-term beer margin target of 39–40% for FY27/28, with a plan to add ~7 million hectoliters of capacity through FY28; expects Q4 volume to be the weakest quarter seasonally (~20% of annual volume) and notes continued tariff and aluminum-headwind risk; December net sales/outlook were in line with expectations, aided by strong brand health and shopper-first shelf strategy.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.22B
-9.78%
-10.41%
Gross Profit
1.18B
-7.87%
-9.68%
Operating Income
692.00M
-12.74%
-20.82%
Net Income
502.80M
-18.36%
7.90%
EPS
2.88
-15.29%
8.68%
Key Financial Ratios
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