Constellation Brands Exceeds Q2 Expectations, Reaffirms Cautious Full-Year Outlook

Constellation Brands, owner of popular brands like Modelo beer, reported stronger-than-expected fiscal second-quarter earnings on Monday, October 6, 2025, beating Wall Street estimates on both the top and bottom lines. Despite the strong performance, the company reiterated its previously lowered full-year guidance, citing persistent macroeconomic headwinds.

Shares of Constellation Brands saw a roughly 3% rise in extended trading following the announcement. For the quarter ending August 31, the company posted adjusted earnings per share of $3.63, surpassing the anticipated $3.38. Revenue also came in higher than expected at $2.48 billion, compared to analysts’ projections of $2.46 billion.

The company recorded a net income of $466 million, or $2.65 per share, a significant turnaround from a $1.2 billion loss in the same period last year. However, net sales for the period dropped 15% year-over-year, and operating margin decreased by 200 basis points, partly attributed to aluminum tariffs.

CEO Bill Newlands acknowledged the challenging environment: “While we continue to navigate a challenging socioeconomic environment that has dampened consumer demand, our teams remain focused on executing against our strategic objectives.”

Constellation Brands had previously cut its full fiscal year comparable earnings per share outlook to a range of $11.30 to $11.60 in September, down from an earlier projection, and reaffirmed this revised outlook in its latest report. The company also maintained its estimate for organic net sales to fall 4% to 6% for fiscal 2026, a notable shift from previous growth expectations. Factors contributing to the cautious outlook include lower demand from Hispanic consumers, linked to concerns over immigration policies and potential job losses.

Constellation executives are scheduled to hold a call with analysts on Tuesday, October 7, at 8 a.m. ET to discuss these results further.

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