Constellation Brands Beat Wall Street, but Beer Drinkers Aren’t Showing Up Jeremy Berke Wed, October 7, 2026 at 1:26 PM EDT 2 min read STZ +2.27% NVDA -0.96% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
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Constellation Brands beat Wall Street this quarter. Its two biggest beers are still shrinking.
The Modelo and Corona maker posted adjusted earnings of $3.74 per share, compared with an average estimate of $3.56, on net sales of $2.63 billion, up 6% year over year. Beer depletions, which track what distributors actually sell to stores, fell 0.6%. Modelo Especial dropped about 2% and Corona Extra about 5%. Pacifico and Victoria grew roughly 19% and 15%, which wasn't enough to cover the gap.
Wall Street changed its mind overnight. Shares fell 4.5% to $110.50 in after-hours trading Tuesday, then reversed Wednesday, trading at $118 by early afternoon after touching $120.31. That's about a 2% gain from Tuesday's close of $115.67.
Guidance appears to be what shifted sentiment, as CEO Nick Fink told analysts that he expects earnings per share to land at the "high end" of an upward revised range of $11.20 to $11.90.
But the stock is still down about 16% since January 1. The broader story here is less slumping beer sales, and more about general consumer lethargy to the category.
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Fink said the World Cup "wound up being disappointing from industry expectations." A World Cup co-hosted by the U.S. should have been a layup for beer. Constellation says it won share in bars, but saw "fairly flat" results in stores. In other words, Team USA's run didn't move consumers.
The shoppers still buying are hunting for value. Fink flagged club stores as a standout channel "particularly with fuel prices." Consumers are consolidating trips and buying in bulk.
That's led Fink's team to look outside of beer: It acquired SpikedAde, a vodka-based "Ade" drink, for $75 million at close plus up to $278 million in performance payments over five years. Fink expects the brand to approach 2 million cases this year.
Constellation is the No. 1 share gainer in beverage alcohol, and its beer volumes still fell. When the top share gainer is shrinking, the category is shrinking faster.
Wall Street appears to think Constellation is headed for a turnaround. Has anyone told beer drinkers?
