$STZ · CONSTELLATION BRANDS, INC.
Constellation Brands filed its 10-Q for Q2 FY2027 (period ended August 31, 2026), reporting net sales of $2.633B (+6.1% YoY), net income attributable to CBI of $565.8M, gross margin of 52.9%, and operating margin of 30.6%. The filing also disclosed the October 2026 acquisition of the SpikedAde spirit-based RTD brand for $75M upfront with up to $278M in contingent consideration over five years.
- Q2 FY2027 net sales of $2.633B, up 6.1% YoY from $2.481B.
- Q2 net income attributable to CBI was $565.8M vs $466.0M in the prior-year quarter.
- Gross margin reached 52.9% and operating margin was 30.6% for the quarter.
- Acquired SpikedAde RTD brand for $75M upfront plus up to $278M in earnouts over five years.
- Six-month share repurchases totaled $454.7M under the $4.0B 2025 Authorization.
STZ is up +2.05% in the regular session to $118.05, adding to a modest +0.05% gain since filing. The market appears to be rewarding the solid top-line growth and margin expansion.
Strong Q2 results with 6%+ revenue growth and expanding margins, plus a strategic RTD acquisition, reinforce Constellation's growth narrative in the high-margin beer and beyond-beer categories.
The SpikedAde acquisition signals continued consolidation in the fast-growing spirit-based RTD category, where Constellation's Beer segment already holds strong distribution. This mirrors broader industry moves by AB InBev and Molson Coors into beyond-beer categories.
The $127.4M in cumulative restructuring costs under the 2025 Restructuring Initiative is nearly fully incurred, but $128.7M in AOCI hedge gains expected to flow through earnings within 12 months could reverse if FX moves unfavorably. The SpikedAde earnout of up to $278M creates contingent liability.
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