Constellation Brands Misses Q1 Earnings but Reaffirms 2026 Outlook Amid Tariff Headwinds

Constellation Brands (NYSE:STZ) shares rose more than 3% intra-day today after the company reported weaker-than-expected first-quarter earnings but reiterated its full-year profit guidance, underscoring confidence in strong beer demand to offset rising tariff-related costs.

For the quarter, net earnings attributable to common shareholders fell to $3.22 per share, missing analysts’ average estimate of $3.41. Net sales climbed 6% year-over-year to $2.52 billion but came in below the $2.56 billion consensus forecast.

Despite the earnings shortfall, Constellation maintained its fiscal 2026 earnings outlook of $12.60 to $12.90 per share, in line with analysts’ average projection of $12.65. Management highlighted robust consumer demand for flagship Modelo Especial and Corona brands as key drivers expected to sustain growth.

The company’s guidance incorporates the expected impact of U.S. tariffs on steel and aluminum—critical materials for beer packaging—which remain in place following delays in broader reciprocal tariff measures announced earlier this year. Constellation also flagged potential headwinds from Canadian duties imposed in March, which could weigh on its wine and spirits segment.