Constellation Brands (STZ), best known for Corona, Modelo and a premium lineup of wine and spirits, faced a challenging Q1 2026, reflecting broader consumer shifts. Demand softened particularly in its core US market, impacted by reduced social spending and evolving consumer preferences toward non-alcoholic and alternative beverages.
● Net Sales: $2.52 billion, down 6 % YoY.
● Earnings per share (EPS): $3.22, down from $3.57, missing the $3.45 consensus.
● Net Income: $214 million, up from $105.5 million YoY.
● Beer Net Sales: -2 %, with shipment volumes down 3.3 %.
● Wine & Spirits Net Sales: -28 %, reflecting weak demand.
Analysis & Outlook
Despite a mixed performance, Wall Street maintains a generally positive long-term view on STZ, with nearly two-thirds of analysts rating it a Buy and an average price target ranging from $201 to $207, suggesting around 15% upside from current levels. UBS recently raised its target to $205, reinforcing confidence in the company’s premium-focused strategy. Nonetheless, challenges remain, including fewer social occasions and evolving drinking habits. Investors will be monitoring premium and non-alcoholic brand traction, US beer shipment trends, margin performances, and any risks tied to tariffs and currency fluctuations in its peso-based operations.
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** This article was prepared by BROKSTOCK analyst Maboko Seabi
