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Additional Reading from MarketBeat Media Berkshire Bought the Dip—Now Constellation Brands Is ReboundingAuthored by Leo Miller. Date Posted: 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 brighter note. To the surprise of Berkshire Hathaway (NYSE: BRK.B), Constellation delivered a total return of -36% last year. During Q4 2024, Berkshire initiated a position in Constellation. As of September 2025, Berkshire held 13.4 million Constellation shares, valued at roughly $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 firm's fiscal year is several quarters ahead of the calendar year. A growing number of investors are paying attention to developments around private space companies and potential future public listings.
In a recent briefing, one research publisher outlines how some investors are seeking early exposure to the space economy through publicly traded assets — without waiting for a formal IPO. The presentation walks through the structure, risks, and mechanics behind this approach for those who want to understand how it works. Read the full sponsor briefing here 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 another 5.3%. Here's a closer look at that report to update the outlook for the stock. Constellation Delivers Impressive Bottom-Line Beat In Q3 FY2026, Constellation reported net revenue of $2.22 billion, a 10% decline year-over-year but about $52 million above analysts' expectations. The consumer staples company reported comparable earnings per share of $3.06, down roughly 6% from a year earlier but well ahead of the consensus estimate of $2.63 (which implied a 19% decline). The company's beer segment, which accounted for about 90% of revenue, saw sales fall 1%. That decline was smaller than the broader beer industry's, allowing Constellation to gain share. Amid a weak backdrop, the company's beer business has consistently outperformed peers. In Q1 and Q2 FY2026, Constellation led the beer category in dollar share gains, and the trend held in FY2025 as well. Even though sales slipped, the beer segment's operating margin rose by 10 basis points, indicating disciplined cost management. The company's Wine and Spirits segment weighed on overall growth, with reported sales down 51%—largely because Constellation divested SVEDKA vodka and portions of its wine portfolio. Excluding those divestitures, sales in the segment fell about 7%. On a pro forma basis (excluding those impacts company-wide), sales were down roughly 2% rather than the reported 10%. Overall, Constellation's performance in the quarter was stronger than the headline figures suggest. Coming Off Multi-Year Lows, STZ Could Have Room to Run Trading near $148, Constellation has only recovered modestly from its 2025 low around $128. That November low was not just last year's nadir — it was the stock's lowest level since April 2020, shortly after the COVID-19 market crash in March of that year. Put differently, Constellation is rebounding from a multi-year drawdown rather than a short-term dip, which leaves meaningful upside if the recovery continues. Berkshire's Buying and Street Price Targets Support the Bull Case Berkshire bought more than 6 million Constellation shares in Q1 2025; the lowest closing price that quarter was about $158. That price is roughly 7% above the current trading level of approximately $148, suggesting Berkshire bought at higher levels than today's market price. Since initiating the position, Berkshire has increased its Constellation holdings, signaling continued confidence even as the stock declined. That institutional support suggests the firm's investors may still see substantial upside. Wall Street analysts also see upside. The MarketBeat consensus price target of about $182 implies roughly 23% upside from current levels. That said, the beer industry faces notable questions. A recent Gallup survey found just 54% of Americans reported drinking alcohol—the lowest figure on record. However, similar lows have occurred before and subsequently rebounded, which suggests recent declines may be cyclical rather than structural. A recovery in consumption would be a tailwind for Constellation. Given the company's track record of beer share gains, solid margin management and the current valuation, Constellation's outlook currently skews to the upside.
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