Constellation Brands Inc Class A

Constellation Brands, based in Rochester, New York, produces and markets beer, wine and spirits, with operations in the U.S., Mexico, New Zealand and Italy. It is the No. 1 brewer and marketer of imported beer in the U.S. and the second-largest U.S. beer company, with exclusive rights in all 50 states to the Modelo, Corona, Pacifico and Victoria brand families. Its Modelo Especial is the No. 1 U.S. beer brand by dollar sales.

Its customers are mainly wholesale distributors and retailers. In the U.S., distributors carry its products to market, with separate networks for beer and for wine and spirits; where a state government is the distributor, state alcohol agencies fill that role. In the fiscal year ended February 28, 2026, beer brought in $8.32 billion of the company's $9.14 billion in net sales.

Wine and spirits contributed $824 million, down from $1.67 billion a year earlier, after the company sold a group of mainstream wine brands in June 2025. What remains is a higher-priced lineup including Kim Crawford, Ruffino, Robert Mondavi Winery, The Prisoner Wine Company and High West. Beer gets most of the investment: the company spent more than $700 million on brewery expansion in fiscal 2026 and planned about $800 million of capital spending for fiscal 2027, almost all on that work.

• In Q2 FY2027 (ended Aug 31, 2026), revenue was $2.82B, up 6.1% from a year earlier, and net income was $565.8M (+21.4%).
• For fiscal 2026, revenue was $9.76B (-11.0% year over year; +0.8% a year from FY2021 to FY2026) with a 17.3% net margin.

• Over FY2022–FY2026: $5.39B in buybacks and $3.26B in dividends.
• The company pays no regular dividend.
• Dividends took 42.4% of earnings and 39.9% of free cash flow in the latest fiscal year.

Rank among 1514 US companies

Form 4 filings from 2025-10-28 to 2026-10-28 (25 read): 0 open-market purchases and 1 sales ($631K).

Large shareholders (13G filings)

ETFs with the most weight in STZ

1. Almost everything rides on U.S. beer. Beer brought in $8.32 billion of $9.14 billion in net sales in the fiscal year ended February 28, 2026. A slowdown in U.S. beer demand would hit nearly the whole company.
2. Tariffs and taxes on imports. Its leading beer brands are imported. New or higher tariffs, import and excise duties, or taxes on raw and packaging materials could raise costs or reduce sales.
3. Immigration policy and Hispanic consumers. The company warns that changes in immigration laws, policies and enforcement could weigh on its consumers, and it singles out Hispanic consumers as particularly exposed.
4. Wine turnaround may fall short. The wine category kept slowing in fiscal 2026. The company is shifting to higher-end brands and cutting costs, but says the timing and impact of these efforts remain uncertain.
5. New chief executive in charge. Nicholas Fink became President and CEO on April 13, 2026. The company says leadership transitions take time and could change strategy, operations and staffing, and a poorly managed handover could disrupt the business.
6. People drinking less alcohol. Health concerns such as cancer risk warnings, moderation trends, weight-loss drugs like GLP-1s, fewer social occasions and substitution with cannabis or hemp products could all shrink demand for its drinks.

• Oct 6, 2026 Quarterly results released; Investor presentation or announcement
• Sep 18, 2026 Major agreement signed; New debt or financial obligation
• Sep 8, 2026 Investor presentation or announcement
• Jul 24, 2026 Executive or board change; Shareholder vote results
• Jun 30, 2026 Quarterly results released; Investor presentation or announcement
• May 21, 2026 Executive or board change; Investor presentation or announcement
• May 6, 2026 Investor presentation or announcement; Other company announcement
• May 5, 2026 Other company announcement
• May 4, 2026 Investor presentation or announcement
• Apr 8, 2026 Quarterly results released; Investor presentation or announcement; Other company announcement

Constellation Brands pays a cash dividend. Its yield (yearly dividends as a share of the stock price) was 3.16% as of October 28, 2026. In the fiscal year ended February 28, 2026, dividends totaled $716 million, about 42% of net income and 40% of free cash flow (cash left after operating costs and capital spending). Total dividends grew from $575 million in fiscal 2021 to $732 million in fiscal 2025. Share buybacks were larger: $5.39 billion over fiscal 2022 to 2026, against $3.26 billion in dividends. The 10-K warns that dividends and buybacks are subject to uncertainties.

Shares have fallen hard in downturns. They dropped 58% in the 2008 financial crisis and took about 43 months to recover, and fell 49% in the 2020 COVID crash, recovering in about 8 months. They also fell 36% in calendar 2025 and were down 40% over the three years to October 28, 2026. Single stocks carry more risk than diversified funds.