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This Month's Bonus 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 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. 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. Note that the company's fiscal year runs several quarters ahead of the calendar year. However, as of the Jan. 8 close, Constellation shares were up more than 7% in 2026. The stock has now rebounded about 16% since hitting a 2025 low near $128 in November. The firm's latest earnings report lifted shares roughly 5.3%. Below we break down Constellation's most recent results to update the outlook for the stock. Constellation Delivers Impressive Bottom-Line Beat In Q3 FY2026, Constellation reported net revenue of $2.22 billion. Revenue declined about 10% year over year, but beat analysts' estimates by roughly $52 million. The consumer staples company reported comparable earnings per share of $3.06, down about 6% from a year earlier but well above the consensus estimate of $2.63 (which had implied a 19% drop). Constellation's beer segment, which accounted for roughly 90% of revenue, saw sales fall 1%. That decline was smaller than the broader beer industry's, allowing Constellation to gain share. Across a weak backdrop, Constellation's beer business has consistently outperformed: in Q1 and Q2 FY2026 the company led the beer category in dollar share gains, a trend that also held through FY2025. Even with lower sales, the beer segment's operating margin rose 10 basis points, signaling effective cost management. The company's Wine & Spirits segment weighed on overall growth, with reported sales down 51%. That decline largely reflected Constellation's divestiture of SVEDKA vodka and portions of its wine portfolio; excluding those impacts, wine and spirits sales fell about 7%. On a company-wide basis, excluding those divestitures, sales declined roughly 2% versus the reported -10% figure. Taken together, Constellation's quarterly performance was stronger than headline numbers suggested. Coming Off Multi-Year Lows, STZ Could Have Room to Run Trading around $148, Constellation has only partially recovered from its 2025 low near $128. That November low was not only the stock's weakest level last year; it was the lowest since April 2020 — shortly after the March 2020 COVID-19 market crash. In other words, Constellation isn't merely bouncing from a short-term dip; it's recovering from a multi-year drawdown. That dynamic suggests meaningful upside potential if the recovery continues. Berkshire Buys and Price Targets Support the Case Berkshire bought more than 6 million Constellation shares in Q1 2025. In that quarter the stock's lowest closing price was $158, roughly 7% above the current price, implying Berkshire's purchases were at levels modestly higher than today's market. Since then, Berkshire has increased its Constellation stake, signaling continued conviction despite the stock's decline. That activity supports the view that Berkshire still sees room for appreciation. 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 questions. A recent Gallup survey found just 54% of Americans reported drinking alcohol, the lowest share ever recorded. Historically, that share has dipped similarly and later rebounded, suggesting recent trends may be cyclical rather than structural — a potential tailwind if drinking rates recover. Combined with the company's track record of beer share gains and its valuation, Constellation's outlook currently skews to the upside.
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