Constellation Brands Inc (NYSE:STZ) stock rose 4.65% (As on January 8, 11:11:02 AM UTC-4, Source: Google Finance) after the company reported third-quarter sales and profit above Wall Street estimates, driven by steady demand for its Modelo Especial and Corona beer brands. Constellation Brands has benefited from improving demand for popular beers such as Pacifico, Victoria, Corona Sunbrew and Corona Familiar, helped by lower prices and sharper marketing, defying a challenging U.S. alcohol market backdrop. Beer sales declined 1% during the third quarter, owing to a drop in shipment volumes, but they improved from a 7% drop in the prior three-month period. Depletions decreased 3.0% as declines for Modelo Especial of approximately 4%, Corona Extra of nearly 9%, and the Modelo Chelada brands of approximately 2% were partially offset by strong growth from Pacifico and Victoria of over 15% and 13%, respectively. Alcohol sales have been under pressure as Hispanic consumers pulled back on purchases amid U.S. President Donald Trump’s crackdown on immigration, while economic uncertainty and stretched household budgets tempered demand for higher-priced wine and spirits. Besides, Trump’s decision to double tariffs on aluminum imports to 50% from 25% significantly impacted spirits companies such as Constellation Brands as 41% of its Mexican beer packaging relies on aluminum. Wine and Spirits net sales declined 51% driven by a 70.6% decrease in shipment volumes reflecting the impacts of the SVEDKA Divestiture and the 2025 Wine Divestitures, strategic pricing actions taken on select brands, and changes in distributor contractual obligations.

STZ in the third quarter of FY26 has reported the adjusted earnings per share of $3.06, beating the analysts’ estimates for the adjusted earnings per share of $2.63. The company had reported the adjusted revenue decline of 10 percent to $2.22 billion in the third quarter of FY26, beating the analysts’ estimates for revenue of $2.16 billion, according to data compiled by LSEG.

Additionally, the company declared a quarterly cash dividend of $1.02 per share of Class A Common Stock payable on February 12, 2026, to stockholders of record as of the close of business on January 29, 2026.

The company forecast annual earnings per share to be between $9.72 and $10.02, compared with its prior expectation of $9.86 to $10.16. It reaffirmed organic net sales decline of 4% to 6% for the year ending February 28, including a 2% to 4% drop in beer sales and a steeper 17% to 20% fall in wine and spirits. For fiscal 2026, operating cash flow target is of $2.5 – $2.6 billion, and free cash flow target is of $1.3 – $1.4 billion.