Constellation Brands sinks after slashing full-year outlook as beer demand fizzles
The brewer behind Modelo and Corona is bracing for soft sales as beer buzz weakens with shifting consumer habits.
Constellation Brands sank Tuesday after the beer giant slashed its full-year guidance. The company cut its fiscal 2026 adjusted earnings-per-share outlook to $11.30 to $11.60, down from its previous range of $12.60 to $12.90. That’s also below the Street’s forecast of $12.64.
The company lowered its beer sales forecast as well, now expecting a 2% to 4% decline versus earlier forecasts for flat to 3% growth. Constellation — which owns beer brands like Modelo, Corona, and Pacifico — flagged a tougher economy, inflation, and an overall smaller appetite for alcohol among US consumers as reasons for the cuts. Executives also pointed to weakening demand for high-end beer among Hispanic consumers, its largest demographic for the category.
“We continue to navigate a challenging macroeconomic environment that has dampened consumer demand and led to more volatile consumer purchasing behavior since our first quarter of fiscal 2026,” CEO Bill Newlands said. “Over the last several months, high-end beer buy rates decelerated sequentially, as both trip frequency and spend per trip declined.”
Wall Street has also been weighing in: last week, Bank of America downgraded Constellation’s stock to “underperform” from “neutral,” while Citi lowered its price target and added the company to its “negative 30-day catalyst watch.”
Constellation will report second-quarter results next month. Shares are down 31% year to date.
