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More Reading from MarketBeat.com Berkshire Bought the Dip—Now Constellation Brands Is ReboundingBy Leo Miller. Article 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 off on a much more positive note. Constellation delivered a total return of -36% last year. Berkshire Hathaway 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 challenging backdrop. Note that the firm's fiscal year runs several quarters ahead of the calendar year. If you've built meaningful wealth, capital gains taxes may be quietly taking a larger bite out of your returns than expected.
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SmartAsset offers a free matching tool that helps you find vetted fiduciary financial advisors in your area, each legally required to act in your best interest. See your advisor matches here However, as of the Jan. 8 close, Constellation shares were 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 sent shares up 5.3%. Below, we break down Constellation's latest results to provide an updated perspective on the stock. Constellation Delivers Impressive Bottom-Line Beat In Q3 FY2026, Constellation reported net revenue of $2.22 billion, a decline of 10% but about $52 million ahead of analysts' expectations. The consumer staples company reported comparable earnings per share of $3.06, roughly a 6% year-over-year decrease. That beat consensus of $2.63, which had implied a 19% drop. The company's beer segment, which accounted for around 90% of revenue, saw sales fall 1%. That performance still outpaced the broader beer industry and allowed 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 that trend also held true in FY2025. Although sales declined, the beer segment's operating margin rose by 10 basis points, signaling effective cost management. Pulling down the company's overall growth was its Wine and Spirits segment, where sales fell 51%. That decline was largely driven by Constellation's divestment of SVEDKA vodka and part of its wine portfolio; excluding those impacts, Wine and Spirits sales were down about 7%. On an adjusted basis excluding those divestitures, consolidated sales fell roughly 2% — considerably better than the reported 10% decline. Overall, Constellation's quarter was stronger than headline figures suggested. 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. That low was not just a one-year trough; it was the stock's lowest level since April 2020, shortly after the March COVID-19 market crash. In other words, Constellation isn't simply bouncing off a near-term bottom — it's recovering from a historic drawdown. That increases the potential for the rally to continue if underlying fundamentals stabilize. Berkshire Buys and Price Targets Support Constellation's Upside 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 share price — suggesting Berkshire purchased a material stake at prices modestly higher than today's levels. Berkshire later increased its stake, signaling continued confidence in the business even as the stock declined. That voting-with-its-wallet behavior suggests the firm still sees meaningful upside for Constellation. Wall Street analysts also see upside. The MarketBeat consensus price target of about $182 implies roughly 23% upside from current levels. Still, the beer industry faces important questions. A recent Gallup survey found that just 54% of Americans reported drinking alcohol — the lowest reading on record. That share has fallen to similar lows before and later rebounded, suggesting recent trends may be more cyclical than structural. If consumption recovers, it would be a meaningful tailwind for Constellation. Coupling the company's track record of beer share gains with an attractive valuation, Constellation's outlook currently skews to the upside.
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