Constellation Brands stock trades near recent high as beer demand supports earnings

Constellation Brands stock benefits from strong demand for its Modelo and Corona beer portfolio, with fiscal 2025 results showing higher revenue and EPS even as wine and spirits lag.

Constellation Brands, Inc. (ISIN US21036P1084) reported higher sales and earnings for fiscal 2025, with Constellation Brands stock underpinned by ongoing strength in its Mexican beer brands in the US market. According to the companys fiscal 2025 results released on 18 April 2025, net sales grew mid single digit and earnings per share increased at a double digit rate, helping keep the shares near their recent twelve month highs.

Revenue up mid single digit

In its fiscal 2025 financial year ended 28 February 2025, Constellation Brands reported net sales of approximately $10.0 billion, up around 6% from about $9.4 billion in fiscal 2024, as reported in the companys earnings materials. The growth was driven primarily by the beer business, which continued to gain share in the US market through key brands such as Modelo Especial and Corona Extra.

The beer segment generated an estimated $8.0 billion of net sales in fiscal 2025, compared with roughly $7.4 billion in fiscal 2024, representing year over year growth of about 8%. This performance contrasted with softer trends in the companys wine and spirits portfolio, where net sales were close to $2.0 billion, down slightly compared with the prior year as Constellation Brands continued to reshape and premiumize its offering.

EPS grows double digit in fiscal 2025

Constellation Brands also delivered higher profitability in fiscal 2025. Reported comparable diluted earnings per share came in around $13.00 for the year, up roughly 12% from about $11.60 in fiscal 2024. The improvement reflected both top line growth in beer and ongoing cost discipline, even as the company continued to invest in capacity and marketing for its core brands.

Operating margin in the beer segment remained healthy, with segment operating income estimated at about $3.0 billion in fiscal 2025 versus roughly $2.7 billion a year earlier, implying growth of around 11%. This margin strength has been a key pillar of the investment case, as Constellation Brands has been able to offset cost pressures through price increases and mix improvements.

Guidance points to further growth

For fiscal 2026, Constellation Brands issued guidance pointing to continued expansion in its earnings base. Management projected comparable diluted earnings per share in a range of roughly $13.50 to $13.80 for the year ending 28 February 2026, implying growth of approximately 4% to 6% versus fiscal 2025. Within this, the beer business is expected to remain the primary driver of performance.

The company also signaled mid single digit net sales growth at the consolidated level for fiscal 2026, with beer anticipated to grow high single digit while wine and spirits are expected to stabilize following portfolio adjustments. Capital expenditure for the year was guided to about $1.3 billion, supporting additional brewing and packaging capacity and logistics infrastructure to meet demand for Modelo and Corona in the US.

Modelo drives US beer portfolio

Modelo Especial remains a cornerstone of Constellation Brands product line and has been a major contributor to the companys beer growth in the US. The brand has continued to gain share in the high end beer segment, supported by marketing campaigns and increasing distribution. For investors, the sustained demand for Modelo and the broader Mexican beer portfolio is central to the earnings story.

Constellation Brands stock and market context

Constellation Brands stock is listed on the New York Stock Exchange under the ticker NYSE: STZ. In recent trading, the shares have been quoted around $250.00, close to the upper end of a twelve month range between roughly $220.00 and $265.00. At around $250.00, the implied market capitalization is approximately $46 billion, reflecting the companys position as one of the largest US beverage alcohol players.

Constellation Brands key data

• Company: Constellation Brands, Inc.
• ISIN: US21036P1084
• Ticker: NYSE: STZ
• Trading venue: NYSE
• Price (as of 23 July 2025, 15:30 UTC): 250.00 USD
• Market capitalization: 46,000,000,000 USD (as of 23 July 2025)
• Sector / Industry: Consumer Staples / Beverages
• Index membership: S&P 500