> ## Content Index
> Fetch the complete content index at: https://www.bullished.co/llms.txt
> Use this file to discover other available public pages before exploring further.

# Constellation Brands' Reported EPS Rose 25% To $3.32, Yet Reported Operating Income Fell 8%
- URL: https://www.bullished.co/constellation-brands-reported-eps-rose-25-to-3-32-yet-reported-operating-income-fell-8-1a9503a4/
- Published: 2026-10-06T20:36:42.000Z
- Updated: 2026-10-06T22:45:10.000Z
- Description: The company also bought SpikedAde for $75 million at close and left its comparable EPS forecast of $11.20 - $11.90 unchanged.
- Author: Matteo Parrino
- Tags: Earnings, STZ, Industry: Consumer Staples

Constellation Brands reported earnings of $3.32 a share for its second quarter, up 25%, while reported operating income fell 8% to $805 million, according to an [8-K filed Tuesday](https://www.sec.gov/Archives/edgar/data/0000016918/000001691826000039/stz-20261006.htm?ref=bullished.co). Net sales rose 6% to [$2,633 million](https://www.sec.gov/Archives/edgar/data/0000016918/000001691826000039/stzex991%5F83120268kearnings.htm?ref=bullished.co) in the quarter ended August 31, 2026.

## What the results show

Stripping out one-time items, comparable earnings were $3.74 a share, up 3%. Comparable operating income rose 1% to about $897 million, the company reported.

Beer net sales rose 5% on a 5.5% increase in shipments. Beer operating margin fell 160 basis points (1.6 percentage points) to 39.0%, because heavier marketing and other overhead spending outweighed lower tariff costs and better fixed-cost absorption. Retail depletions, a measure of sales to consumers, slipped 0.6%.

Within beer, Modelo Especial depletions fell about 2% and Corona Extra about 5%. Pacifico grew about 19%, Victoria about 15% and the Modelo Chelada brands about 5%.

Wine and spirits swung to a $6.1 million operating profit from a $19.8 million loss a year earlier. Net sales rose 17% to $159.4 million, and depletions rose 10.2%. The company credited tariff recoveries and savings from restructuring for the margin gain.

CEO Nicholas Fink and CFO Garth Hankinson said in the release that the company is "beginning to see early returns through accelerating dollar and volume share gains."

## SpikedAde deal and the forecast

Constellation bought SpikedAde, a spirit-based ready-to-drink brand, after the quarter ended. It paid $75 million at close for 100% of the business. It could pay up to $278 million more over five years, depending on how the brand performs. The company said the deal does not affect its fiscal 2027 outlook.

The company updated its fiscal 2027 reported EPS forecast to $11.85 - $12.55\. It reaffirmed comparable EPS of $11.20 - $11.90, operating cash flow of $2.4 - $2.5 billion and free cash flow of $1.6 - $1.7 billion.

Through the first half, operating cash flow was $1.5 billion, down 1%, and free cash flow was $1.1 billion, up 4%. The company repurchased $530 million of shares year to date through September.

In after-hours trading Tuesday, shares were at $113.89, down about 2% from the regular close of $115.67 (market data).

## What to watch

The board declared a quarterly dividend of $1.03 a share on Class A stock, payable November 13 to holders of record October 30\. Class 1 shares get $0.93 on the same dates.

The dividend payment on November 13 is the next dated event the filing names.

### Sources

- [8-K Filing — CONSTELLATION BRANDS, INC. (STZ)](https://www.sec.gov/Archives/edgar/data/0000016918/000001691826000039/stz-20261006.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit stzex991\_83120268kearnings.htm — CONSTELLATION BRANDS, INC. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000016918/000001691826000039/stzex991%5F83120268kearnings.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit stzex992\_10620268k.htm — CONSTELLATION BRANDS, INC. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000016918/000001691826000039/stzex992%5F10620268k.htm?ref=bullished.co) — SEC EDGAR