Constellation Brands Inc. reported third-quarter results for fiscal 2026 that exceeded Wall Street expectations despite continued pressure on overall sales.

For the quarter ended November 30, net sales were $2.22 billion, down about 10% year-over-year, while adjusted earnings per share came in at $3.06, beating analyst forecasts. 

The company’s beer business, led by popular brands such as Modelo and Corona, continued to outperform the broader beverage alcohol market, with modest gains in dollar and volume share across U.S. tracked channels.

Wine and spirits results were weaker, reflecting ongoing divestitures and softer demand, with organic sales down notably from a year earlier. 

Despite this, Constellation has maintained strong cash flow and returned significant capital to shareholders through share repurchases and dividends.

Management updated its outlook for fiscal 2026, lowering reported EPS guidance to a range of $9.72 to $10.02 while reaffirming a comparable EPS outlook of $11.30 to $11.60. The company also reiterated targets for operating and free cash flow.

CEO Bill Newlands noted the operating environment remained “challenged” but highlighted progress in strategic priorities, including expanding brewery capacity and disciplined capital allocation.