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Tuesday's Exclusive News Berkshire Bought the Dip—Now Constellation Brands Is ReboundingWritten by Leo Miller. Originally Published: 1/9/2026. 
Summary - 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 brighter 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 customers 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 the firm's fiscal year runs several quarters ahead of the calendar year. When a share price changes for a private company, it's not usually breaking news. But it should be. Because in RAD Intel's case, the shift from $0.81/share to $0.85/share signals something much more important than just a few extra cents. It's proof of momentum.
This AI company isn't chasing headlines – it's building the infrastructure layer that drives real business outcomes for global brands. And investors have taken notice.
So ask yourself:
Are you watching the next breakout quietly unfold... or participating in it? You missed the $0.81 round. The good news? The door's still open... for now. Secure Your $0.85 Shares Today – Limited Allocation Still Available However, as of the Jan. 8 close, Constellation shares are up more than 7% 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 the share price higher — up about 5.3%. Let's break down Constellation's latest results to get an updated perspective on the stock. Constellation Delivers Impressive Bottom-Line Beat In Q3 FY2026, Constellation reported net revenue of $2.22 billion. Revenue was down 10% year-over-year but topped analysts' estimates by roughly $52 million. The consumer staples company reported comparable earnings per share of $3.06, a decline of about 6% from a year earlier — materially better than the consensus estimate of $2.63, which had called for a 19% drop. Constellation's beer segment, which accounts for roughly 90% of revenue, saw sales fall 1%. That decline was smaller than the broader beer industry's, allowing Constellation to gain market share. Amid a weak backdrop, Constellation's beer business has consistently outperformed: in Q1 and Q2 FY2026 Constellation led the beer category in dollar share gains, and this trend held true in FY2025. Despite the sales decline, the beer segment's operating margin expanded by 10 basis points, underscoring effective cost management. Pulling down the company's overall growth was the Wine and Spirits segment, where sales fell 51%. That steep drop largely reflects Constellation's divestment of SVEDKA vodka and part of its wine portfolio; excluding those impacts, sales declined about 7%. On a company-wide basis, excluding those divestitures, sales were down roughly 2% — materially better than the reported -10% figure. Overall, Constellation performed better than headline numbers suggest. Coming Off Multi-Year Lows, STZ Could Have Significant Room to Run Trading around $148, Constellation has only partially recovered from its 2025 low near $128. Investors should note that low was the stock's lowest level since April 2020 — just after the March COVID-19 market crash. Put another way, Constellation hasn't just bounced from a short-term trough; it's recovering from a historic drawdown, which suggests meaningful upside if the rally continues. Berkshire Buys and Price Targets Support Constellation's Potential Berkshire bought more than 6 million Constellation shares in Q1 2025. In that quarter the stock's lowest closing price was $158, which is roughly 7% above the current price — implying Berkshire may have purchased shares at higher levels than today's market price. Since initiating the position, Berkshire increased its stake, signaling continued confidence even as the stock tumbled. That buying activity suggests Berkshire still sees meaningful upside for Constellation. Wall Street analysts are also constructive. The MarketBeat consensus price target of about $182 implies roughly 23% upside from current levels. Still, the beer industry faces noteworthy questions. A recent Gallup survey found just 54% of Americans reported drinking alcohol — the lowest level on record. That said, past declines have proved cyclical rather than structural, and consumption has rebounded before, which would be a tailwind for Constellation if it happens again. Combined with the company's consistent beer share gains and an attractive valuation relative to upside estimates, Constellation's outlook currently skews to the upside.
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