Constellation Brands Q1 Earnings Miss Amid Tariff Pressures, Maintains FY26 Outlook

Constellation Brands, Inc. reported first-quarter fiscal 2026 adjusted earnings of $3.22 per share, falling short of the $3.31 analyst consensus. Revenue declined 5.5% year-over-year to $2.52 billion, missing the $2.55 billion forecast. The beverage giant cited aluminum tariffs and softening beer demand as key headwinds.

Operating margin contracted 150 basis points to 28.4%, with beer shipments dropping 3.3% amid weaker Hispanic consumer spending. Despite the miss, management reaffirmed full-year EPS guidance of $12.60-$12.90 and organic revenue growth between -2% to +1%.

The stock closed 2.3% higher at $166.42 as investors focused on maintained guidance rather than the quarterly miss. Aluminum tariffs of 25% in March and 50% in June significantly impacted costs, with adjusted EBITDA falling to $829.7 million.