Guidance
Beer fiscal year 2027 sales guidance reflects limited visibility.
Guidance tone
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Demand
Capex
STZ
FY2026 Q4
IN LINE
Constellation Brands, Inc. earnings call
Buzzberg read
Beer fiscal year 2027 sales guidance reflects limited visibility.
Constellation Brands reported FY26 Q4 results with solid beer momentum but cautious forward guidance. Beer top-line growth is guided at -1% to +1% for FY27, and beer operating margins are expected to step down to 37-38% due to expansion costs at the new Veracruz brewery and higher SG&A. Management emphasized limited visibility, a volatile consumer environment, and the need for agility, while expressing confidence in long-term brand strength. Beer depletions improved sequentially in Q4 and March is off to a solid start, but overall FY27 revenue growth is guided at -1% to +1%.
Buzzberg read Beer fiscal year 2027 sales guidance reflects limited visibility. Constellation Brands reported FY26 Q4 results with solid beer momentum but cautious forward guidance. Beer top-line growth is guided at -1% to +1% for FY27, and beer operating margins are expected to step down to 37-38% due to expansion costs at the new Veracruz brewery and higher SG&A. Management emphasized limited visibility, a volatile consumer environment, and the need for agility, while expressing confidence in long-term brand strength. Beer depletions improved sequentially in Q4 and March is off to a solid start, but overall FY27 revenue growth is guided at -1% to +1%. Read full analysisCollapse analysis
Constellation Brands reported FY26 Q4 results with solid beer momentum but cautious forward guidance. Beer top-line growth is guided at -1% to +1% for FY27, and beer operating margins are expected to step down to 37-38% due to expansion costs at the new Veracruz brewery and higher SG&A. Management emphasized limited visibility, a volatile consumer environment, and the need for agility, while expressing confidence in long-term brand strength. Beer depletions improved sequentially in Q4 and March is off to a solid start, but overall FY27 revenue growth is guided at -1% to +1%.
- Beer operating margin guidance lowered to 37-38% from prior 39-40% due to fixed-cost absorption from the new Veracruz brewery and higher marketing spend.
- Modelo Especial remains the #1 beer by dollars in the US; Pacifico and Victoria are highlighted as emerging growth drivers with younger demographics.
- Wine & Spirits margins are under pressure from category declines, channel headwinds, and distributor inventory rebalancing; structural target of low-20% margins remains but is pushed out.
Revenue
$1.9202B
-14% QoQ
EPS
$1.90
-38% QoQ
Gross margin
49.56%
reported
Op margin
26%
reported
What changed this quarter
Margins
Beer margins guided lower due to Veracruz startup and higher SG&A.
Reported gross margin was 49.56%, reinforcing the quarter's better-than-guided profitability.
Margins
Wine and spirits margins pressured by category and channel headwinds.
Reported gross margin was 49.56%, reinforcing the quarter's better-than-guided profitability.
Margins
Wine and spirits low-20s margin target remains achievable medium term.
Reported gross margin was 49.56%, reinforcing the quarter's better-than-guided profitability.
Demand & capex
Bookings & conversion
Pacifico and Victoria are emerging as key growth drivers.. Management emphasized limited visibility and a dynamic consumer environment, despite positive momentum and strong brand positions.
Investment and capacity
Management discussed managing capital expenditures with a modular approach to capacity, particularly for the new Veracruz brewery, and noted that FY26 capex was significantly lower than initial expectations, with future spend to be managed or delayed based on business needs.
Tone · Cautious
Management emphasized limited visibility and a dynamic consumer environment, despite positive momentum and strong brand positions.
Forward guidance
In LineGuidance tone
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Op marginBEER | FY2027 | 37%–38% | 37.5% | LOWERED |
| RevenueBEER | FY2027 | -1%–1% | 0% | GUIDED |