Constellation Brands Inc. released its first quarter fiscal year 2026 financial results, reporting a low-single digit decline in net sales and a mid-single digit decline in operating income for its beer business. The company also experienced a 150 basis points year-over-year contraction in operating margin, bringing it to 39.1%. Despite these declines, Constellation Brands maintained its fiscal year 2026 outlook, with net sales expected to grow between 0% to 3% and operating income projected to increase by 0% to 2%. The company updated its fiscal year 2026 reported earnings per share $(EPS)$ outlook to a range of $12.07 to $12.37, while maintaining a comparable EPS outlook of $12.60 to $12.90. In terms of capital allocation, the company declared a dividend of $1.02 per Class A share and executed $381 million of share repurchases through June 2025. Capital expenditures amounted to $193 million, primarily directed towards enhancing beer brewing capacity. Constellation Brands also reported maintaining its fiscal year 2026 targets for operating cash flow between $2.7 billion to $2.8 billion and free cash flow of $1.5 billion to $1.6 billion. The net leverage ratio was kept at the target level of approximately 3.0X.