Constellation Brands Posts Q3 Declines, Maintains Dividend Payout

Constellation Brands ( (STZ) ) has issued an announcement.

On January 7, 2026, Constellation Brands reported third-quarter fiscal 2026 results showing a 10% year-over-year decline in net sales to $2.22 billion and an 18% drop in net income attributable to the company to $503 million, as diluted EPS fell 15% to $2.88 on a reported basis and 6% to $3.06 on a comparable basis. The company’s beer business continued to outperform the wider U.S. beverage alcohol and beer categories in dollar and volume share despite a 1% net sales decline driven by lower shipment volumes; key brands like Modelo Especial and Corona Extra retained leading dollar sales positions, while Pacifico and Victoria delivered strong growth. In contrast, the wine and spirits segment saw net sales shrink 51% and operating income decline 65%, largely due to the SVEDKA and 2025 wine divestitures and related volume losses, which weighed on margins even as the remaining portfolio outpaced the higher-end wine segment in U.S. tracked channels. Constellation generated year-to-date operating cash flow of $2.1 billion and free cash flow of $1.45 billion, repurchased $824 million of shares year-to-date and $220 million in the quarter, and returned nearly $1.4 billion to shareholders over the first three quarters while maintaining its investment‑grade rating and leverage and payout targets. The board also declared on January 7, 2026 a quarterly cash dividend of $1.02 per Class A common share and $0.92 per Class 1 convertible common share, payable February 12, 2026 to shareholders of record as of January 29, 2026, signaling continued capital returns even as management pursues cost savings, brewery expansion, and efficiency initiatives in what it describes as a challenging operating environment.

The most recent analyst rating on (STZ) stock is a Hold with a $147.00 price target. To see the full list of analyst forecasts on Constellation Brands stock, see the STZ Stock Forecast page.

Spark’s Take on STZ Stock

According to Spark, TipRanks’ AI Analyst, STZ is a Neutral.

Constellation Brands’ overall score reflects strong profitability and efficient operations, but is tempered by challenges in revenue and free cash flow growth. Technical indicators show short-term bullish momentum, while valuation metrics suggest caution. The earnings call and corporate events indicate strategic management but highlight ongoing challenges in volume growth and margin pressures.

To see Spark’s full report on STZ stock, click here.

More about Constellation Brands

Constellation Brands is a major producer and marketer of alcoholic beverages, with a portfolio centered on premium beer, wine, and spirits brands. Its beer business, which includes labels such as Modelo and Corona, is a key growth driver in U.S. tracked channels, while its streamlined wine and spirits segment focuses on higher-end offerings that aim to outperform the broader U.S. wine market.

Average Trading Volume: 2,462,406

Technical Sentiment Signal: Sell

Current Market Cap: $24.81B

For an in-depth examination of STZ stock, go to TipRanks’ Overview page.