The company maintains resilient pricing power with a 49.6% gross margin in 2026Q4, despite an 11.3% year-over-year revenue decline driven by strategic portfolio pruning.
| Metric | Feb'26 | Feb'25 | Feb'24 | Feb'23 | Feb'22 | Feb'21 | Feb'20 | Feb'19 | Feb'18 | Feb'17 | Feb'16 | Feb'15 | Feb'14 | Feb'13 | Feb'12 | Feb'11 | Feb'10 | Feb'09 | Feb'08 | Feb'07 | Feb'06 | Feb'05 | Feb'04 | Feb'03 | Feb'02 | Feb'01 | Feb'00 | Feb'99 | Feb'98 | Feb'97 |
|---|
| Sales/Revenue | 9.14B | 10.21B | 9.96B | 9.45B | 8.82B | 8.61B | 8.34B | 8.12B | 7.58B | 7.33B | 6.55B | 6.03B | 4.86B | 2.79B | 2.65B | 3.32B | 3.35B | 3.66B | 3.77B | 5.22B | 4.6B | 4.09B | 3.55B | 2.73B | 2.82B | 2.4B | 2.34B | 1.5B | 1.21B | 1.14B |
| Revenue Growth % | -10.47% | 2.47% | 5.37% | 7.17% | 2.42% | 3.24% | 2.81% | 7.04% | 3.43% | 11.98% | 8.63% | 23.89% | 74.11% | 5.51% | -20.21% | -0.83% | -8.47% | -3.11% | -27.67% | 13.32% | 12.62% | 15.07% | 30.05% | -3.15% | 17.68% | 2.4% | 56.31% | 23.46% | 6.85% | 112.15% |
| Cost of Goods Sold | 4.43B | 5.01B | 5.05B | 4.64B | 4.22B | 4.14B | 4.02B | 4.01B | 3.76B | 3.79B | 3.52B | 3.4B | 2.86B | 1.68B | 1.59B | 2.15B | 2.18B | 2.36B | 2.48B | 3.7B | 3.29B | 2.95B | 2.58B | 1.97B | 1.9B | 1.59B | 1.55B | 1.01B | 830.6M | 812.2M |
| COGS % of Revenue | 48.45% | 49.04% | 50.72% | 49.1% | 47.86% | 48.1% | 48.19% | 49.45% | 49.59% | 51.72% | 53.73% | 56.37% | 58.81% | 60.22% | 60.12% | 64.69% | 65.29% | 64.59% | 65.62% | 70.88% | 71.36% | 72.28% | 72.53% | 72.15% | 67.42% | 66.53% | 66.35% | 67.47% | 68.49% | 71.56% |
| Gross Profit | 4.71B | 5.2B | 4.91B | 4.81B | 4.6B | 4.47B | 4.32B | 4.1B | 3.82B | 3.54B | 3.03B | 2.63B | 2B | 1.11B | 1.06B | 1.17B | 1.16B | 1.29B | 1.3B | 1.52B | 1.32B | 1.13B | 975.79M | 760.72M | 919.04M | 802.07M | 787.61M | 487M | 382.2M | 322.8M |
| Gross Margin % | 51.55% | 50.96% | 49.28% | 50.9% | 52.14% | 51.9% | 51.81% | 50.55% | 50.41% | 48.28% | 46.27% | 43.63% | 41.19% | 39.78% | 39.88% | 35.31% | 34.71% | 35.41% | 34.38% | 29.12% | 28.64% | 27.71% | 27.47% | 27.85% | 32.58% | 33.47% | 33.65% | 32.53% | 31.51% | 28.44% |
| Gross Profit Growth % | -9.42% | 5.95% | 2.02% | 4.62% | 2.88% | 3.43% | 5.37% | 7.35% | 7.98% | 16.85% | 15.2% | 31.24% | 80.29% | 5.23% | -9.87% | 0.87% | -10.25% | -0.22% | -14.61% | 15.22% | 16.37% | 16.1% | 28.27% | -17.23% | 14.58% | 1.84% | 61.73% | 27.42% | 18.4% | 111.39% |
| Operating Expenses | 1.85B | 1.58B | 1.78B | 1.82B | 1.7B | 1.61B | 1.55B | 1.45B | 1.53B | 1.29B | 1.12B | 1.05B | 842.2M | 555.6M | 524.2M | 665.4M | 652.6M | 749.5M | 770.9M | 739.3M | 606.2M | 525.89M | 488.43M | 355.76M | 576.56M | 1.24B | 547.06M | 338.5M | 265.2M | 241M |
| OpEx % of Revenue | 20.23% | 15.5% | 17.82% | 19.28% | 19.22% | 18.72% | 18.61% | 17.86% | 20.22% | 17.61% | 17.17% | 17.47% | 17.31% | 19.89% | 19.8% | 20.05% | 19.5% | 20.5% | 20.43% | 14.17% | 13.17% | 12.87% | 13.75% | 13.02% | 20.44% | 51.91% | 23.37% | 22.61% | 21.87% | 21.23% |
| Selling, General & Admin | 1.85B | 1.58B | 1.78B | 1.82B | 1.7B | 1.61B | 1.55B | 1.45B | 1.38B | 1.29B | 1.12B | 1.05B | 842.2M | 555.6M | 524.2M | 665.4M | 652.6M | 749.5M | 770.9M | 739.3M | 606.2M | 525.89M | 457.28M | 350.99M | 576.56M | 486.59M | 481.91M | 299.5M | 231.7M | 209M |
| SG&A % of Revenue | 20.23% | 15.5% | 17.82% | 19.28% | 19.22% | 18.72% | 18.61% | 17.86% | 18.18% | 17.61% | 17.17% | 17.47% | 17.31% | 19.89% | 19.8% | 20.05% | 19.5% | 20.5% | 20.43% | 14.17% | 13.17% | 12.87% | 12.87% | 12.85% | 20.44% | 20.3% | 20.59% | 20% | 19.1% | 18.41% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 31.15M | 4.76M | 0 | -178.52M | 65.15M | 39M | 33.5M | 32M |
| Operating Income | 2.86B | 3.62B | 3.13B | 2.99B | 2.9B | 2.86B | 2.77B | 2.65B | 2.28B | 2.25B | 1.9B | 1.58B | 1.16B | 555.6M | 531.8M | 506.3M | 509M | 544.8M | 526.3M | 779.8M | 712.18M | 607M | 487.36M | 404.96M | 342.48M | 270.87M | 240.55M | 148.5M | 117M | 81.8M |
| Operating Margin % | 31.33% | 35.45% | 31.46% | 31.62% | 32.92% | 33.19% | 33.19% | 32.69% | 30.07% | 30.68% | 29.09% | 26.16% | 23.87% | 19.89% | 20.08% | 15.26% | 15.21% | 14.9% | 13.95% | 14.95% | 15.47% | 14.85% | 13.72% | 14.82% | 12.14% | 11.3% | 10.28% | 9.92% | 9.65% | 7.21% |
| Operating Income Growth % | -20.89% | 15.48% | 4.84% | 2.93% | 1.59% | 3.22% | 4.4% | 16.37% | 1.39% | 18.06% | 20.8% | 35.78% | 109% | 4.48% | 5.04% | -0.53% | -6.57% | 3.52% | -32.51% | 9.49% | 17.33% | 24.55% | 20.35% | 18.24% | 26.44% | 12.6% | 61.99% | 26.92% | 43.03% | 209.85% |
| EBITDA | 3.28B | 4.07B | 3.56B | 3.38B | 3.25B | 3.16B | 3.11B | 3.1B | 2.67B | 2.54B | 2.13B | 1.78B | 1.32B | 671M | 642.1M | 640.1M | 664.9M | 701.8M | 692.2M | 919.1M | 840.28M | 710.65M | 589.4M | 465.11M | 427.88M | 341.75M | 305.7M | 187.5M | 150.5M | 113.8M |
| EBITDA Margin % | 35.92% | 39.83% | 35.77% | 35.71% | 36.8% | 36.66% | 37.31% | 38.2% | 35.17% | 34.68% | 32.47% | 29.52% | 27.07% | 24.02% | 24.25% | 19.29% | 19.87% | 19.2% | 18.35% | 17.62% | 18.25% | 17.39% | 16.59% | 17.03% | 15.17% | 14.26% | 13.06% | 12.52% | 12.41% | 10.03% |
| EBITDA Growth % | -19.25% | 14.11% | 5.53% | 4% | 2.81% | 1.45% | 0.41% | 16.27% | 4.87% | 19.61% | 19.5% | 35.11% | 96.2% | 4.5% | 0.31% | -3.73% | -5.26% | 1.39% | -24.69% | 9.38% | 18.24% | 20.57% | 26.72% | 8.7% | 25.2% | 11.79% | 63.04% | 24.58% | 32.25% | 182.38% |
| D&A (Non-Cash Add-back) | 420M | 447M | 429.2M | 387M | 342.4M | 299.1M | 343.2M | 447.1M | 386.5M | 293.9M | 221M | 202M | 155.3M | 115.4M | 110.3M | 133.8M | 155.9M | 157M | 165.9M | 139.3M | 128.1M | 103.66M | 102.05M | 60.15M | 85.4M | 70.89M | 65.15M | 39M | 33.5M | 32M |
| EBIT | 2.73B | 335.6M | 2.66B | 781.4M | 662.6M | 2.93B | -516.5M | 4.56B | 2.67B | 2.42B | 1.81B | 1.51B | 2.54B | 741.8M | 723.3M | 749.8M | 506.7M | 217.4M | -100.2M | 815.3M | 674.74M | 571.95M | 518.51M | 409.72M | 342.48M | 270.87M | 240.55M | 148.5M | 112.1M | 113.1M |
| Net Interest Income | -352.6M | -411.4M | -433.8M | -397.8M | -352.2M | -382.8M | -428.7M | -402.1M | -334.2M | -329.3M | -305.7M | -329.3M | -331.2M | -218.6M | -182.7M | -195.3M | -237M | -320.4M | -334.7M | -274.6M | -193.28M | -137.68M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12M | 2.3M | 1.8M | 800K | 1.4M | 7.7M | 6.8M | 6.6M | 3.5M | 10.4M | 3.8M | 5.7M | 5.4M | 4.2M | 2.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 352.6M | 411.4M | 433.8M | 397.8M | 352.2M | 382.8M | 428.7M | 414.1M | 336.5M | 331.1M | 306.5M | 330.7M | 338.9M | 225.4M | 189.3M | 198.8M | 247.4M | 324.2M | 340.4M | 280M | 197.48M | 139.97M | 174.11M | 70.02M | 114.08M | 0 | 111.59M | 55.5M | 32.1M | 34M |
| Other Income/Expense | -485.3M | -3.7B | -912.2M | -2.61B | -2.59B | -315.8M | -3.71B | 1.49B | 58.2M | -155.2M | -403.4M | -397.1M | 1.04B | -39.2M | 2.2M | 44.7M | -249.7M | -651.6M | -966.9M | -244.5M | -234.93M | -175.02M | -142.96M | -70.02M | -112.52M | -108.63M | -111.59M | -44.1M | -32.2M | -33.9M |
| Pretax Income | 2.38B | -82.8M | 2.22B | 383.6M | 310.4M | 2.54B | -945.2M | 4.14B | 2.34B | 2.09B | 1.5B | 1.18B | 2.2B | 516.4M | 534M | 551M | 259.3M | -106.8M | -440.6M | 535.3M | 477.26M | 431.97M | 344.4M | 334.94M | 229.96M | 162.24M | 128.96M | 104.4M | 84.9M | 47.8M |
| Pretax Margin % | 26.02% | -0.81% | 22.3% | 4.06% | 3.52% | 29.52% | -11.33% | 51.07% | 30.9% | 28.56% | 22.93% | 19.57% | 45.28% | 18.48% | 20.17% | 16.6% | 7.75% | -2.92% | -11.68% | 10.26% | 10.37% | 10.57% | 9.69% | 12.26% | 8.15% | 6.77% | 5.51% | 6.97% | 7% | 4.21% |
| Income Tax | 621M | -51.7M | 456.6M | 422.1M | 309.4M | 511.1M | -966.6M | 685.9M | 22.7M | 554.2M | 440.6M | 343.4M | 259.2M | 128.6M | 89M | -8.5M | 160M | 194.6M | 172.7M | 203.4M | 152M | 155.51M | 123.98M | 131.63M | 91.98M | 64.89M | 51.58M | 42.5M | 34.8M | 20.1M |
| Effective Tax Rate % | 26.12% | 62.44% | 20.55% | 110.04% | 99.68% | 20.1% | 102.26% | 16.55% | 0.97% | 26.47% | 29.35% | 29.11% | 11.77% | 24.9% | 16.67% | -1.54% | 61.7% | -182.21% | -39.2% | 38% | 31.85% | 36% | 36% | 39.3% | 40% | 40% | 40% | 40.71% | 40.99% | 42.05% |
| Net Income | 1.69B | -81.4M | 1.73B | -71M | -40.4M | 2B | -11.8M | 3.44B | 2.3B | 1.54B | 1.05B | 839.3M | 1.94B | 387.8M | 445M | 559.5M | 99.3M | -301.4M | -613.3M | 331.9M | 325.26M | 276.46M | 220.41M | 203.31M | 136.42M | 97.34M | 77.38M | 50.5M | 50.1M | 27.7M |
| Net Margin % | 18.46% | -0.8% | 17.34% | -0.75% | -0.46% | 23.2% | -0.14% | 42.34% | 30.38% | 20.94% | 16.11% | 13.93% | 39.95% | 13.88% | 16.81% | 16.86% | 2.97% | -8.24% | -16.25% | 6.36% | 7.07% | 6.76% | 6.2% | 7.44% | 4.84% | 4.06% | 3.31% | 3.37% | 4.13% | 2.44% |
| Net Income Growth % | 2172.11% | -104.71% | 2532.96% | -75.74% | -102.02% | 17032.2% | -100.34% | 49.17% | 50.05% | 45.52% | 25.69% | -56.81% | 401.06% | -12.85% | -20.46% | 463.44% | 132.95% | 50.86% | -284.78% | 2.04% | 17.65% | 25.43% | 8.41% | 49.03% | 40.15% | 25.81% | 53.22% | 0.8% | 80.87% | 739.39% |
| Net Income (Continuing) | 1.76B | -31.1M | 1.77B | -38.5M | 1M | 2.03B | 21.4M | 3.46B | 2.32B | 1.54B | 1.06B | 836.2M | 1.94B | 387.8M | 445M | 559.5M | 99.3M | -301.4M | -613.3M | 331.9M | 325.26M | 276.46M | 220.41M | 203.31M | 137.97M | 97.34M | 77.38M | 61.9M | 47.1M | 46.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 304.5M | 252.8M | 321.5M | 320.3M | 315.9M | 330.2M | 342.5M | 286.2M | 16.6M | -6.4M | 132.2M | 110.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 9.61 | -0.45 | 9.39 | -0.37 | -0.21 | 10.23 | -0.06 | 17.57 | 11.55 | 7.52 | 5.18 | 4.17 | 9.83 | 2.04 | 2.13 | 2.62 | 0.41 | -1.38 | -2.80 | 1.38 | 1.36 | 1.19 | 1.03 | 1.10 | 0.78 | 0.65 | 0.52 | 0.34 | 0.31 | 0.30 |
| EPS Growth % | 2235.56% | -104.79% | 2637.84% | -76.19% | -102.05% | 16520.55% | -100.35% | 52.12% | 53.59% | 45.17% | 24.22% | -57.58% | 381.86% | -4.23% | -18.7% | 539.02% | 129.71% | 50.71% | -302.9% | 1.47% | 14.29% | 15.53% | -6.36% | 41.03% | 20% | 25% | 52.94% | 9.68% | 3.33% | 1308.45% |
| EPS (Basic) | 9.62 | -0.45 | 9.42 | -0.37 | -0.21 | 10.42 | -0.06 | 18.03 | 11.55 | 7.79 | 5.42 | 4.40 | 10.45 | 2.15 | 2.20 | 2.68 | 0.45 | -1.38 | -2.80 | 1.44 | 1.44 | 1.25 | 1.08 | 1.13 | 0.80 | 0.67 | 0.53 | 0.35 | 0.32 | 0.30 |
| Diluted Shares Outstanding | 175.57M | 181.48M | 183.96M | 192.54M | 190.36M | 195.31M | 189.31M | 195.53M | 200.75M | 204.1M | 203.82M | 201.22M | 197.57M | 190.31M | 208.66M | 213.76M | 244.95M | 217.66M | 218.95M | 239.77M | 238.71M | 233.06M | 213.9M | 185.49M | 175.65M | 149.5M | 147.52M | 150.03M | 152.84M | 155.95M |
| Basic Shares Outstanding | 175.41M | 181.48M | 183.31M | 192.54M | 190.36M | 191.74M | 189.31M | 190.57M | 194.79M | 199.29M | 196.75M | 192.72M | 188.15M | 182.19M | 204.31M | 210.91M | 219.83M | 217.66M | 218.95M | 228.81M | 220.81M | 215.53M | 201.4M | 179.71M | 171.01M | 146.89M | 145.09M | 146.34M | 149.38M | 154.64M |
| Dividend Payout Ratio | 42.43% | - | 37.85% | - | - | 28.78% | - | 16.23% | 17.37% | 20.53% | 22.9% | - | - | - | - | - | - | - | - | - | - | - | 1.49% | - | - | - | - | - | - | - |
Mexican supply chain dependency
As reported in recent financial statements, Constellation Brands experienced a 11.3% year-over-year revenue decline in 2026Q4, a trend that appears heavily influenced by strategic divestitures of lower-margin wine assets rather than a fundamental erosion of the core Mexican beer import franchise's underlying consumer demand.
The headline revenue decline warrants careful interpretation, as the company is actively pruning its portfolio to focus on premium segments. Investors should monitor whether the stabilization of the beer segment can eventually offset the volume losses associated with exiting commoditized wine categories.
Based on reported figures, the company maintained a gross margin of 49.6% in 2026Q4, demonstrating significant pricing power within the premium beer category despite broader inflationary pressures on raw materials like aluminum and glass that have historically impacted the industry's cost of goods sold.
The ability to sustain margins near the 50% threshold suggests that the brand equity of the Mexican import portfolio remains robust. This pricing power is a critical differentiator compared to peers like Molson Coors, which lack similar structural advantages in the premium import space.
According to recent SEC filings, the company's operating margin fluctuated to 26.0% in 2026Q4, reflecting the inherent seasonality of the beverage business where fixed-cost absorption is optimized during peak summer quarters rather than the winter months represented in the most recent quarterly data.
The variance in operating income suggests that management is effectively managing SG&A expenses, though the high fixed-cost nature of the Mexican brewery infrastructure requires consistent volume to maintain peak efficiency. Analysts should look for margin expansion as brewery utilization rates normalize in upcoming quarters.
As indicated by historical income statements, the company's net income has been subject to significant volatility, with 2026Q4 net income of $201.8M reflecting the ongoing impact of non-operating items and fair value adjustments related to legacy investments in the cannabis sector.
The disparity between operating income and net income highlights the importance of focusing on core beverage operations rather than bottom-line figures, which have been distorted by capital allocation errors. Investors should prioritize adjusted EPS metrics to gauge the true underlying profitability of the beer and spirits business.
Based on an analysis of the company's operational footprint, the heavy concentration of production in Mexico presents a unique risk profile, as water scarcity and potential shifts in trade policy could threaten the long-term cost structure of the core beer segment's manufacturing operations.
While the current moat is protected by legal divestiture mandates, the reliance on a single geographic region for the majority of production creates an idiosyncratic risk that is not present in more diversified global peers. Any regulatory change regarding water rights in northern Mexico could necessitate significant, unforeseen capital expenditures.
Quick answers to the most common questions about buying STZ stock.
For fiscal year 2026, Constellation Brands, Inc. (STZ) reported total revenue of $9.14B. This represents a 705.2% increase compared to $1.14B in 1997.
Constellation Brands, Inc. (STZ) is profitable, generating $1.69B in net income for the fiscal year ending 2026 with a net profit margin of 18.5%.
Constellation Brands, Inc. (STZ) reported an operating income of $2.86B, resulting in an operating profit margin of 31.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Constellation Brands, Inc. (STZ) generated $4.71B in gross profit for the year, representing a gross profit margin of 51.6%. This demonstrates the company's core pricing power and production efficiency.