NEW YORK, Jan 8, 2026, 05:32 (EST) — Premarket
Constellation Brands (STZ) fell 2.2% in premarket trading on Thursday to $140.49, after the Modelo beer maker beat Wall Street profit estimates but trimmed its full-year reported earnings outlook. The company said net sales fell 10% to $2.22 billion for the quarter ended Nov. 30, while comparable earnings per share came in at $3.06, topping analysts’ $2.63 estimate, according to LSEG data. The stock had jumped about 3% in after-hours trade on Wednesday, but ended 2025 down 37%.
Investors have been asking whether U.S. beer demand is slowing for good or just pausing after years of growth, and whether price can keep doing the heavy lifting if volumes stay soft. For Constellation, the beer story usually swamps everything else.
Constellation said the operating environment “remained challenged” as consumers stayed cautious, pointing to inflation and broader economic uncertainty. It said its beer business gained share in U.S. tracked channels, citing Circana data, and returned just under $400 million to shareholders through dividends and buybacks during the quarter; cash returned in fiscal 2026 through the first three quarters totaled nearly $1.4 billion, including $824 million of share repurchases through December. Constellation Brands Corporate Website
Beer net sales slipped 1% as shipments dropped 2.2%; depletions — a read on sales from distributors to retailers — fell 3%, the company said. Modelo Especial depletions declined about 4% and Corona Extra nearly 9%, while Pacifico and Victoria rose more than 15% and 13%; beer operating margin still inched up 10 basis points, or one-tenth of a point, to 38% even as aluminum tariffs lifted costs, it said. Wine and spirits net sales fell 51% after divestitures, and Constellation cut its fiscal 2026 reported EPS outlook to $9.72-$10.02 while holding its comparable EPS forecast — an adjusted measure — at $11.30-$11.60; it reiterated an organic net sales decline of 4%-6% (excluding currency and deal effects) for the year ending Feb. 28, including a 2%-4% fall in beer and a 17%-20% drop in wine and spirits.
A filing showed the board declared a quarterly cash dividend of $1.02 per Class A share, payable Feb. 12 to shareholders of record on Jan. 29.
But the beat may not calm investors who want cleaner volume trends, not just price and mix, after a bruising year for the stock. If consumer spending weakens further — or rivals lean harder on promotions — margins could come under fresh pressure just as input costs stay jumpy.
