Constellation Brands Q2 Beat, GAAP/Adjusted Guidance Diverge

Constellation Brands reported fiscal Q2 (ended Aug) adjusted EPS of $3.63, beating estimates by roughly $0.15–$0.26 (about a 7.7% earnings surprise) while revenue fell to $2.48 billion from $2.92 billion a year earlier. The company said its beer portfolio saw about a 7% decline in beer sales and higher beer costs, producing mixed results across segments. Management affirmed adjusted FY2026 EPS guidance of $11.30–$11.60 but issued a lower GAAP EPS range of about $9.86–$10.16, creating a notable disparity for investors. Constellation returned nearly $300 million to shareholders through share repurchases and declared a quarterly cash dividend. Shares have underperformed this year (down roughly 35.7% YTD), and the stock’s near-term direction will hinge on management’s commentary on the Oct. 7 earnings call and any ensuing estimate revisions.