Constellation Brands Inc. (STZ) Affirms Stock Buybacks as it lowers Guidance

Core Viewpoint - Constellation Brands Inc. has lowered its fiscal 2026 outlook due to challenging macroeconomic conditions, impacting earnings and sales forecasts [1][2]. Financial Outlook - The company now expects comparable earnings per share to be between $11.30 and $11.60, a decrease from the previous guidance of $12.60 to $12.90 [1]. - Enterprise organic net sales are projected to decline by 4% to 6%, influenced by lower volumes and operating deleveraging [2]. - Free cash flow guidance has been reduced to between $1.3 billion and $1.4 billion, down from $1.5 billion to $1.6 billion [2]. Shareholder Commitment - Despite the lowered guidance, Constellation Brands has reaffirmed its commitment to shareholder value with a $4 billion stock repurchase program, having executed $604 million in buybacks in the first half of fiscal 2026 [3]. Market Trends - There has been a deceleration in high-end beer buy rates, particularly among Hispanic consumers, which has a significant impact on the company's Beer Business [4]. Company Overview - Constellation Brands Inc. is a major player in the production and marketing of beer, wine, and spirits, with notable brands such as Corona and Modelo, and is the largest importer and distributor of these beverages in the U.S. [5].