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Exclusive Article Berkshire Bought the Dip—Now Constellation Brands Is ReboundingWritten by Leo Miller. Publication Date: 1/9/2026. 
At a Glance - Constellation Brands is rebounding sharply in early 2026 after a 36% loss last year, with its Q3 earnings beating expectations.
- Berkshire Hathaway increased its stake in STZ despite the stock’s downturn, signaling long-term confidence in its recovery potential.
- Strong beer segment performance, improving margins, and analyst price targets point to upside, even as broader alcohol demand remains uncertain.
After a disastrous 2025, shares of beer giant Constellation Brands (NYSE: STZ) are starting 2026 on a much stronger note. Constellation delivered a total return of -36% last year. Berkshire Hathaway (NYSE: BRK.B) initiated a position in Constellation during Q4 2024; as of September 2025, Berkshire held 13.4 million Constellation shares, valued near $1.8 billion at the time. General weakness in the beer market and among Constellation's customer base contributed to the stock's decline. Constellation lowered its full-year fiscal 2026 (FY2026) guidance in September 2025 because of the difficult environment it faces. Note that the company's fiscal year is several quarters ahead of the calendar year. Wall Street veteran reveals #1 investment trend of 2026 (not AI)
Will you potentially make money or lose money in the U.S. stock market in 2026? According to the 50-year Wall Street legend who invented one of Wall Street's most popular buying and selling indicators – the answer has nothing to do with AI, quantum computing, or cryptos. Instead, it all comes down to the #1 stock he recommends you BUY now… And the #1 stock he recommends you SELL now. However, as of the Jan. 8 close, Constellation shares are up more than 7% in 2026. The stock has now rebounded roughly 16% since hitting a 2025 low near $128 in November. The firm's latest earnings report sent shares up another 5.3%. Below, we break down Constellation's most recent results to provide an updated perspective on the stock. Constellation Delivers an Impressive Bottom-Line Beat In Q3 FY2026, Constellation reported net revenue of $2.22 billion, a 10% decline but about $52 million ahead of analysts' estimates. The consumer staples company reported comparable earnings per share of $3.06, down about 6% year-over-year but well above the consensus of $2.63 (which had implied a 19% decline). Constellation's beer segment, which accounts for roughly 90% of revenue, recorded a 1% sales decline. That modest drop was better than the broader beer industry's performance, allowing Constellation to gain share. Amid a weak backdrop, Constellation's beer business has consistently outperformed: in Q1 and Q2 FY2026 it led the beer category in dollar share gains, a trend that held true in FY2025. Although sales dipped, the beer segment's operating margin expanded by 10 basis points, reflecting effective cost management. The company's Wine & Spirits segment dragged on overall growth with a 51% sales decline, largely the result of divesting SVEDKA vodka and parts of its wine portfolio. Excluding those divestitures, Wine & Spirits sales fell only 7%. Extending those exclusions to the whole company, sales growth would be -2% rather than the reported -10%. On balance, Constellation's performance in the quarter was stronger than headline figures suggested. Coming Off Multi-Year Lows, STZ May Have Room to Run Trading near $148, Constellation has only partially recovered from its 2025 low around $128. That low was the stock's weakest level since April 2020, shortly after the March COVID-19 market crash. In other words, Constellation is rebounding from a historic drawdown rather than a short-term dip, which leaves meaningful upside if the recovery continues. Berkshire's Buying and Analyst Targets Bolster the Bull Case Berkshire bought more than 6 million Constellation shares in Q1 2025. During that quarter the stock's lowest closing price was $158, which is about 7% above its current level—suggesting Berkshire's purchases were made at prices modestly higher than today's price. Berkshire has since increased its stake, indicating ongoing conviction even as the stock fell. That activity suggests Berkshire likely still sees room for Constellation's share price to appreciate. Wall Street analysts also see upside: the MarketBeat consensus price target of roughly $182 implies about 23% upside from current levels. Still, the beer industry faces questions. A recent Gallup survey found just 54% of Americans report drinking alcohol—the lowest level on record. That figure, however, has fallen to similar lows in past cycles and later rebounded, suggesting the trend may be cyclical rather than structural—good news if it reverses. Combined with Constellation's track record of beer segment share gains and its valuation, the company's outlook currently skews to the upside.
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