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Additional Reading from MarketBeat Media Berkshire Bought the Dip—Now Constellation Brands Is ReboundingSubmitted by Leo Miller. First Published: 1/9/2026. 
In Brief - 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 more positive note. To the chagrin of Berkshire Hathaway (NYSE: BRK.B), Constellation delivered a total return of -36% last year. Prior to Warren Buffett's retirement, Berkshire 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. Note that the company's fiscal year is offset from the calendar year. While President Trump's official salary is $400,000 per year... his tax returns reveal he's been collecting up to $250,000 PER MONTH from one hidden source. Until recently, most Americans couldn't touch the type of investment that makes up this investment. But thanks to Executive Order 14330, that just changed. If you love investing in disruptive new companies... Discover how to invest in the fund Trump uses to collect this income >> As of the Jan. 8 close, Constellation shares were up more than 7% year-to-date in 2026. The stock has rebounded roughly 16% since hitting a 2025 low near $128 in November. The firm's latest earnings report also pushed shares up 5.3%. Below is a breakdown of Constellation's most recent results and what they mean for the stock. Constellation Delivers Impressive Bottom-Line Beat In Q3 FY2026, Constellation reported net revenue of $2.22 billion, a 10% year-over-year decline but about $52 million ahead of analysts' estimates. The company reported comparable earnings per share of $3.06, down roughly 6% from a year earlier but well above the consensus estimate of $2.63 (which implied a 19% drop). Constellation's beer segment — roughly 90% of revenue — saw sales decline about 1%. That decline was smaller than the broader beer industry, allowing Constellation to gain market share. Amid a weak category, Constellation's beer business has consistently outperformed: in Q1 and Q2 FY2026 it led the beer category in dollar share gains, and that trend held in FY2025 as well. Despite lower sales, the beer segment's operating margin rose by 10 basis points, signaling solid cost management. The company's Wine & Spirits segment was the primary drag, with reported sales down 51% — largely the result of divesting SVEDKA vodka and portions of its wine portfolio. Excluding those divestitures, Wine & Spirits sales fell about 7%. Extending those exclusions to the whole company, consolidated sales would be down roughly 2%, considerably better than the reported -10%. Coming Off Multi-Year Lows, STZ May Have Room to Run Trading around $148, Constellation has only modestly recovered from its 2025 low near $128. That November low was not just the stock's weakest level last year; it was the lowest closing price since April 2020, which followed the March 2020 COVID-19 market crash. In other words, Constellation isn't simply bouncing from a short-term dip — it's working back from a historic drawdown. That sets up the potential for a more extended rally if the company continues to execute. Berkshire Buys and Price Targets Support Constellation's Upside Berkshire bought more than 6 million Constellation shares in Q1 2025, when the stock's lowest closing price that quarter was about $158. That price is roughly 7% above the stock's current level, suggesting Berkshire acquired shares at a premium to today's trading price. Since then, Berkshire has increased its Constellation stake, signaling continued confidence even as the shares pulled back. That pattern implies Berkshire likely still sees substantial upside potential for the company. Wall Street analysts are also constructive. The MarketBeat consensus price target of roughly $182 implies about 23% upside from current levels. That said, the beer industry faces meaningful questions. A recent Gallup survey found just 54% of Americans reported drinking alcohol — the lowest share on record. However, similar lows have occurred before and were followed by sizable rebounds, suggesting the trend could be cyclical rather than structural. If consumption recovers, it would be a material tailwind for Constellation. Taken together — consistent beer share gains, resilient margins, the potential for industry recovery, and a consensus price target well above current levels — Constellation's outlook leans to the upside.
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