Revenue declined 3.3% year-over-year in Q1 2027, but gross margin expanded to 54.3% from 50.4% a year ago, reflecting pricing power and cost management.
| Metric | TTM | Feb'26 | Feb'25 | Feb'24 | Feb'23 | Feb'22 | Feb'21 | Feb'20 | Feb'19 | Feb'18 | Feb'17 | Feb'16 | Feb'15 | Feb'14 | Feb'13 | Feb'12 | Feb'11 | Feb'10 | Feb'09 | Feb'08 | Feb'07 | Feb'06 | Feb'05 | Feb'04 | Feb'03 | Feb'02 | Feb'01 | Feb'00 | Feb'99 | Feb'98 | Feb'97 |
|---|
| Sales/Revenue | 9.06B | 9.14B | 10.21B | 9.96B | 9.45B | 8.82B | 8.61B | 8.34B | 8.12B | 7.58B | 7.33B | 6.55B | 6.03B | 4.86B | 2.79B | 2.65B | 3.32B | 3.35B | 3.66B | 3.77B | 5.22B | 4.6B | 4.09B | 3.55B | 2.73B | 2.82B | 2.4B | 2.34B | 1.5B | 1.21B | 1.14B |
| Revenue Growth % | -9.98% | -10.47% | 2.47% | 5.37% | 7.17% | 2.42% | 3.24% | 2.81% | 7.04% | 3.43% | 11.98% | 8.63% | 23.89% | 74.11% | 5.51% | -20.21% | -0.83% | -8.47% | -3.11% | -27.67% | 13.32% | 12.62% | 15.07% | 30.05% | -3.15% | 17.68% | 2.4% | 56.31% | 23.46% | 6.85% | 112.15% |
| Cost of Goods Sold | 4.29B | 4.43B | 5.01B | 5.05B | 4.64B | 4.22B | 4.14B | 4.02B | 4.01B | 3.76B | 3.79B | 3.52B | 3.4B | 2.86B | 1.68B | 1.59B | 2.15B | 2.18B | 2.36B | 2.48B | 3.7B | 3.29B | 2.95B | 2.58B | 1.97B | 1.9B | 1.59B | 1.55B | 1.01B | 830.6M | 812.2M |
| COGS % of Revenue | - | 48.45% | 49.04% | 50.72% | 49.1% | 47.86% | 48.1% | 48.19% | 49.45% | 49.59% | 51.72% | 53.73% | 56.37% | 58.81% | 60.22% | 60.12% | 64.69% | 65.29% | 64.59% | 65.62% | 70.88% | 71.36% | 72.28% | 72.53% | 72.15% | 67.42% | 66.53% | 66.35% | 67.47% | 68.49% | 71.56% |
| Gross Profit | 4.77B | 4.71B | 5.2B | 4.91B | 4.81B | 4.6B | 4.47B | 4.32B | 4.1B | 3.82B | 3.54B | 3.03B | 2.63B | 2B | 1.11B | 1.06B | 1.17B | 1.16B | 1.29B | 1.3B | 1.52B | 1.32B | 1.13B | 975.79M | 760.72M | 919.04M | 802.07M | 787.61M | 487M | 382.2M | 322.8M |
| Gross Margin % | 52.62% | 51.55% | 50.96% | 49.28% | 50.9% | 52.14% | 51.9% | 51.81% | 50.55% | 50.41% | 48.28% | 46.27% | 43.63% | 41.19% | 39.78% | 39.88% | 35.31% | 34.71% | 35.41% | 34.38% | 29.12% | 28.64% | 27.71% | 27.47% | 27.85% | 32.58% | 33.47% | 33.65% | 32.53% | 31.51% | 28.44% |
| Gross Profit Growth % | - | -9.42% | 5.95% | 2.02% | 4.62% | 2.88% | 3.43% | 5.37% | 7.35% | 7.98% | 16.85% | 15.2% | 31.24% | 80.29% | 5.23% | -9.87% | 0.87% | -10.25% | -0.22% | -14.61% | 15.22% | 16.37% | 16.1% | 28.27% | -17.23% | 14.58% | 1.84% | 61.73% | 27.42% | 18.4% | 111.39% |
| Operating Expenses | 1.85B | 1.85B | 1.58B | 1.78B | 1.82B | 1.7B | 1.61B | 1.55B | 1.45B | 1.53B | 1.29B | 1.12B | 1.05B | 842.2M | 555.6M | 524.2M | 665.4M | 652.6M | 749.5M | 770.9M | 739.3M | 606.2M | 525.89M | 488.43M | 355.76M | 576.56M | 1.24B | 547.06M | 338.5M | 265.2M | 241M |
| OpEx % of Revenue | - | 20.23% | 15.5% | 17.82% | 19.28% | 19.22% | 18.72% | 18.61% | 17.86% | 20.22% | 17.61% | 17.17% | 17.47% | 17.31% | 19.89% | 19.8% | 20.05% | 19.5% | 20.5% | 20.43% | 14.17% | 13.17% | 12.87% | 13.75% | 13.02% | 20.44% | 51.91% | 23.37% | 22.61% | 21.87% | 21.23% |
| Selling, General & Admin | 1.84B | 1.85B | 1.58B | 1.78B | 1.82B | 1.7B | 1.61B | 1.55B | 1.45B | 1.38B | 1.29B | 1.12B | 1.05B | 842.2M | 555.6M | 524.2M | 665.4M | 652.6M | 749.5M | 770.9M | 739.3M | 606.2M | 525.89M | 457.28M | 350.99M | 576.56M | 486.59M | 481.91M | 299.5M | 231.7M | 209M |
| SG&A % of Revenue | - | 20.23% | 15.5% | 17.82% | 19.28% | 19.22% | 18.72% | 18.61% | 17.86% | 18.18% | 17.61% | 17.17% | 17.47% | 17.31% | 19.89% | 19.8% | 20.05% | 19.5% | 20.5% | 20.43% | 14.17% | 13.17% | 12.87% | 12.87% | 12.85% | 20.44% | 20.3% | 20.59% | 20% | 19.1% | 18.41% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 31.15M | 4.76M | 0 | -178.52M | 65.15M | 39M | 33.5M | 32M |
| Operating Income | 2.91B | 2.86B | 3.62B | 3.13B | 2.99B | 2.9B | 2.86B | 2.77B | 2.65B | 2.28B | 2.25B | 1.9B | 1.58B | 1.16B | 555.6M | 531.8M | 506.3M | 509M | 544.8M | 526.3M | 779.8M | 712.18M | 607M | 487.36M | 404.96M | 342.48M | 270.87M | 240.55M | 148.5M | 117M | 81.8M |
| Operating Margin % | 32.14% | 31.33% | 35.45% | 31.46% | 31.62% | 32.92% | 33.19% | 33.19% | 32.69% | 30.07% | 30.68% | 29.09% | 26.16% | 23.87% | 19.89% | 20.08% | 15.26% | 15.21% | 14.9% | 13.95% | 14.95% | 15.47% | 14.85% | 13.72% | 14.82% | 12.14% | 11.3% | 10.28% | 9.92% | 9.65% | 7.21% |
| Operating Income Growth % | - | -20.89% | 15.48% | 4.84% | 2.93% | 1.59% | 3.22% | 4.4% | 16.37% | 1.39% | 18.06% | 20.8% | 35.78% | 109% | 4.48% | 5.04% | -0.53% | -6.57% | 3.52% | -32.51% | 9.49% | 17.33% | 24.55% | 20.35% | 18.24% | 26.44% | 12.6% | 61.99% | 26.92% | 43.03% | 209.85% |
| EBITDA | 3.22B | 3.28B | 4.07B | 3.56B | 3.38B | 3.25B | 3.16B | 3.11B | 3.1B | 2.67B | 2.54B | 2.13B | 1.78B | 1.32B | 671M | 642.1M | 640.1M | 664.9M | 701.8M | 692.2M | 919.1M | 840.28M | 710.65M | 589.4M | 465.11M | 427.88M | 341.75M | 305.7M | 187.5M | 150.5M | 113.8M |
| EBITDA Margin % | 35.6% | 35.92% | 39.83% | 35.77% | 35.71% | 36.8% | 36.66% | 37.31% | 38.2% | 35.17% | 34.68% | 32.47% | 29.52% | 27.07% | 24.02% | 24.25% | 19.29% | 19.87% | 19.2% | 18.35% | 17.62% | 18.25% | 17.39% | 16.59% | 17.03% | 15.17% | 14.26% | 13.06% | 12.52% | 12.41% | 10.03% |
| EBITDA Growth % | -19.08% | -19.25% | 14.11% | 5.53% | 4% | 2.81% | 1.45% | 0.41% | 16.27% | 4.87% | 19.61% | 19.5% | 35.11% | 96.2% | 4.5% | 0.31% | -3.73% | -5.26% | 1.39% | -24.69% | 9.38% | 18.24% | 20.57% | 26.72% | 8.7% | 25.2% | 11.79% | 63.04% | 24.58% | 32.25% | 182.38% |
| D&A (Non-Cash Add-back) | 313.5M | 420M | 447M | 429.2M | 387M | 342.4M | 299.1M | 343.2M | 447.1M | 386.5M | 293.9M | 221M | 202M | 155.3M | 115.4M | 110.3M | 133.8M | 155.9M | 157M | 165.9M | 139.3M | 128.1M | 103.66M | 102.05M | 60.15M | 85.4M | 70.89M | 65.15M | 39M | 33.5M | 32M |
| EBIT | 2.87B | 2.73B | 335.6M | 2.66B | 781.4M | 662.6M | 2.93B | -516.5M | 4.56B | 2.67B | 2.42B | 1.81B | 1.51B | 2.54B | 741.8M | 723.3M | 749.8M | 506.7M | 217.4M | -100.2M | 815.3M | 674.74M | 571.95M | 518.51M | 409.72M | 342.48M | 270.87M | 240.55M | 148.5M | 112.1M | 113.1M |
| Net Interest Income | -338.1M | -352.6M | -411.4M | -433.8M | -397.8M | -352.2M | -382.8M | -428.7M | -402.1M | -334.2M | -329.3M | -305.7M | -329.3M | -331.2M | -218.6M | -182.7M | -195.3M | -237M | -320.4M | -334.7M | -274.6M | -193.28M | -137.68M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 6.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12M | 2.3M | 1.8M | 800K | 1.4M | 7.7M | 6.8M | 6.6M | 3.5M | 10.4M | 3.8M | 5.7M | 5.4M | 4.2M | 2.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 344.3M | 352.6M | 411.4M | 433.8M | 397.8M | 352.2M | 382.8M | 428.7M | 414.1M | 336.5M | 331.1M | 306.5M | 330.7M | 338.9M | 225.4M | 189.3M | 198.8M | 247.4M | 324.2M | 340.4M | 280M | 197.48M | 139.97M | 174.11M | 70.02M | 114.08M | 0 | 111.59M | 55.5M | 32.1M | 34M |
| Other Income/Expense | -384.2M | -485.3M | -3.7B | -912.2M | -2.61B | -2.59B | -315.8M | -3.71B | 1.49B | 58.2M | -155.2M | -403.4M | -397.1M | 1.04B | -39.2M | 2.2M | 44.7M | -249.7M | -651.6M | -966.9M | -244.5M | -234.93M | -175.02M | -142.96M | -70.02M | -112.52M | -108.63M | -111.59M | -44.1M | -32.2M | -33.9M |
| Pretax Income | 2.53B | 2.38B | -82.8M | 2.22B | 383.6M | 310.4M | 2.54B | -945.2M | 4.14B | 2.34B | 2.09B | 1.5B | 1.18B | 2.2B | 516.4M | 534M | 551M | 259.3M | -106.8M | -440.6M | 535.3M | 477.26M | 431.97M | 344.4M | 334.94M | 229.96M | 162.24M | 128.96M | 104.4M | 84.9M | 47.8M |
| Pretax Margin % | 27.9% | 26.02% | -0.81% | 22.3% | 4.06% | 3.52% | 29.52% | -11.33% | 51.07% | 30.9% | 28.56% | 22.93% | 19.57% | 45.28% | 18.48% | 20.17% | 16.6% | 7.75% | -2.92% | -11.68% | 10.26% | 10.37% | 10.57% | 9.69% | 12.26% | 8.15% | 6.77% | 5.51% | 6.97% | 7% | 4.21% |
| Income Tax | 621.5M | 621M | -51.7M | 456.6M | 422.1M | 309.4M | 511.1M | -966.6M | 685.9M | 22.7M | 554.2M | 440.6M | 343.4M | 259.2M | 128.6M | 89M | -8.5M | 160M | 194.6M | 172.7M | 203.4M | 152M | 155.51M | 123.98M | 131.63M | 91.98M | 64.89M | 51.58M | 42.5M | 34.8M | 20.1M |
| Effective Tax Rate % | 24.6% | 26.12% | 62.44% | 20.55% | 110.04% | 99.68% | 20.1% | 102.26% | 16.55% | 0.97% | 26.47% | 29.35% | 29.11% | 11.77% | 24.9% | 16.67% | -1.54% | 61.7% | -182.21% | -39.2% | 38% | 31.85% | 36% | 36% | 39.3% | 40% | 40% | 40% | 40.71% | 40.99% | 42.05% |
| Net Income | 1.82B | 1.69B | -81.4M | 1.73B | -71M | -40.4M | 2B | -11.8M | 3.44B | 2.3B | 1.54B | 1.05B | 839.3M | 1.94B | 387.8M | 445M | 559.5M | 99.3M | -301.4M | -613.3M | 331.9M | 325.26M | 276.46M | 220.41M | 203.31M | 136.42M | 97.34M | 77.38M | 50.5M | 50.1M | 27.7M |
| Net Margin % | 20.14% | 18.46% | -0.8% | 17.34% | -0.75% | -0.46% | 23.2% | -0.14% | 42.34% | 30.38% | 20.94% | 16.11% | 13.93% | 39.95% | 13.88% | 16.81% | 16.86% | 2.97% | -8.24% | -16.25% | 6.36% | 7.07% | 6.76% | 6.2% | 7.44% | 4.84% | 4.06% | 3.31% | 3.37% | 4.13% | 2.44% |
| Net Income Growth % | 512.48% | 2172.11% | -104.71% | 2532.96% | -75.74% | -102.02% | 17032.2% | -100.34% | 49.17% | 50.05% | 45.52% | 25.69% | -56.81% | 401.06% | -12.85% | -20.46% | 463.44% | 132.95% | 50.86% | -284.78% | 2.04% | 17.65% | 25.43% | 8.41% | 49.03% | 40.15% | 25.81% | 53.22% | 0.8% | 80.87% | 739.39% |
| Net Income (Continuing) | 1.9B | 1.76B | -31.1M | 1.77B | -38.5M | 1M | 2.03B | 21.4M | 3.46B | 2.32B | 1.54B | 1.06B | 836.2M | 1.94B | 387.8M | 445M | 559.5M | 99.3M | -301.4M | -613.3M | 331.9M | 325.26M | 276.46M | 220.41M | 203.31M | 137.97M | 97.34M | 77.38M | 61.9M | 47.1M | 46.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 294.2M | 304.5M | 252.8M | 321.5M | 320.3M | 315.9M | 330.2M | 342.5M | 286.2M | 16.6M | -6.4M | 132.2M | 110.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 10.58 | 9.61 | -0.45 | 9.39 | -0.37 | -0.21 | 10.23 | -0.06 | 17.57 | 11.55 | 7.52 | 5.18 | 4.17 | 9.83 | 2.04 | 2.13 | 2.62 | 0.41 | -1.38 | -2.80 | 1.38 | 1.36 | 1.19 | 1.03 | 1.10 | 0.78 | 0.65 | 0.52 | 0.34 | 0.31 | 0.30 |
| EPS Growth % | 538.49% | 2235.56% | -104.79% | 2637.84% | -76.19% | -102.05% | 16520.55% | -100.35% | 52.12% | 53.59% | 45.17% | 24.22% | -57.58% | 381.86% | -4.23% | -18.7% | 539.02% | 129.71% | 50.71% | -302.9% | 1.47% | 14.29% | 15.53% | -6.36% | 41.03% | 20% | 25% | 52.94% | 9.68% | 3.33% | 1308.45% |
| EPS (Basic) | - | 9.62 | -0.45 | 9.42 | -0.37 | -0.21 | 10.42 | -0.06 | 18.03 | 11.55 | 7.79 | 5.42 | 4.40 | 10.45 | 2.15 | 2.20 | 2.68 | 0.45 | -1.38 | -2.80 | 1.44 | 1.44 | 1.25 | 1.08 | 1.13 | 0.80 | 0.67 | 0.53 | 0.35 | 0.32 | 0.30 |
| Diluted Shares Outstanding | 172.41M | 175.57M | 181.48M | 183.96M | 192.54M | 190.36M | 195.31M | 189.31M | 195.53M | 200.75M | 204.1M | 203.82M | 201.22M | 197.57M | 190.31M | 208.66M | 213.76M | 244.95M | 217.66M | 218.95M | 239.77M | 238.71M | 233.06M | 213.9M | 185.49M | 175.65M | 149.5M | 147.52M | 150.03M | 152.84M | 155.95M |
| Basic Shares Outstanding | 172.19M | 175.41M | 181.48M | 183.31M | 192.54M | 190.36M | 191.74M | 189.31M | 190.57M | 194.79M | 199.29M | 196.75M | 192.72M | 188.15M | 182.19M | 204.31M | 210.91M | 219.83M | 217.66M | 218.95M | 228.81M | 220.81M | 215.53M | 201.4M | 179.71M | 171.01M | 146.89M | 145.09M | 146.34M | 149.38M | 154.64M |
| Dividend Payout Ratio | - | 42.43% | - | 37.85% | - | - | 28.78% | - | 16.23% | 17.37% | 20.53% | 22.9% | - | - | - | - | - | - | - | - | - | - | - | 1.49% | - | - | - | - | - | - | - |
Water scarcity in Mexico
Reported revenue fell 10.5% year-over-year, but this largely reflects wine brand divestitures; core beer volumes appear stable based on maintained guidance and peer outperformance.
The headline revenue decline is misleading, as the Beer segment likely continues to grow given the EPS beat and maintained guidance. The Wine & Spirits divestitures artificially depress top-line growth while improving margin quality. Investors should monitor depletion rates to confirm underlying consumer demand remains intact.
Gross margin improved to 54.3% in 2027Q1 from 50.4% a year earlier, indicating strong pricing power in the premium beer category despite input cost pressures.
The 390 bps year-over-year gross margin expansion suggests Constellation is successfully passing through cost increases, likely driven by the Modelo brand's pricing power. This outperforms peers like TAP (37.6%) and SAM (45.6%), though DEO's 60.1% margin highlights the premium wine segment's potential. The margin trajectory appears sustainable given the structural moat in Mexican imports.
Operating margin rose to 34.7% in 2027Q1 from 33.1% a year ago, as SG&A grew slower than gross profit, indicating improving overhead efficiency.
Despite a 3.3% revenue decline, operating income grew 5.9% year-over-year, demonstrating positive operating leverage. SG&A as a percentage of revenue fell from 17.3% to 19.0% (though absolute SG&A declined), suggesting disciplined cost control. This efficiency is a key differentiator versus BUD (25.9% op margin) and TAP (-21.0%).
Net income swung from -$1.2B in 2025Q2 to $653.8M in 2027Q1, driven by fair value adjustments on Canopy Growth investment, obscuring underlying operational performance.
The reported net income is heavily distorted by equity method losses and fair value changes from the Canopy Growth stake. For instance, 2025Q2's -$1.2B net loss and 2025Q4's -$375.3M loss are likely due to these non-cash items. Adjusted EPS of $3.79 vs. $3.69 estimate suggests core beer earnings are strong, but investors should focus on comparable operating income to gauge true profitability.
Cost of goods sold declined 10.6% year-over-year in 2027Q1, outpacing the 3.3% revenue drop, indicating improved input cost management or favorable mix.
The COGS decline suggests either lower commodity costs (e.g., aluminum, barley) or a shift toward higher-margin products. Given the gross margin expansion, it appears Constellation is benefiting from hedging or operational efficiencies at its Mexican breweries. This cost discipline is critical given the high fixed-cost base from brewery and glass manufacturing investments.
Despite margin expansion, the persistent revenue decline over five of the last six quarters suggests potential demand softness or channel destocking that warrants scrutiny.
While divestitures explain part of the revenue drop, the -3.3% organic decline in 2027Q1 (vs. -5.5% in 2026Q1) may indicate slowing beer volumes. If depletion rates are not keeping pace with shipments, inventory buildup could pressure future orders. Short-sellers would argue that premiumization cannot offset volume declines indefinitely, especially if consumer spending weakens.
Quick answers to the most common questions about buying STZ stock.
For fiscal year 2026, Constellation Brands, Inc. (STZ) reported total revenue of $9.14B. This represents a 705.2% increase compared to $1.14B in 1997.
Constellation Brands, Inc. (STZ) is profitable, generating $1.69B in net income for the fiscal year ending 2026 with a net profit margin of 18.5%.
Constellation Brands, Inc. (STZ) reported an operating income of $2.86B, resulting in an operating profit margin of 31.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Constellation Brands, Inc. (STZ) generated $4.71B in gross profit for the year, representing a gross profit margin of 51.6%. This demonstrates the company's core pricing power and production efficiency.