Constellation Brands, Inc. ( STZ ) shares are trading lower Tuesday after the company cut its fiscal year 2026 outlook, citing macroeconomic headwinds affecting consumer demand.

What To Know: The company lowered its comparable earnings per share outlook to $11.30 to $11.60, down from prior guidance of $12.60 to $12.90.

Constellation now expects enterprise organic net sales to decline 4% to 6%, compared with earlier guidance for a decline of 2% to a gain of 1%. Enterprise operating income growth is projected at 666% to 686%, versus prior guidance of 742% to 760%.

Beer net sales are forecast to fall 2% to 4%, with beer operating income down 7% to 9%. Previous guidance called for flat to 3% growth in beer net sales.

Free cash flow is now expected at $1.3 billion to $1.4 billion, compared with the prior range of $1.5 billion to $1.6 billion.

“We continue to navigate a challenging macroeconomic environment that has dampened consumer demand and led to more volatile consumer purchasing behavior since our first quarter of fiscal 2026,” said Constellation Brands ( STZ ) President and CEO Bill Newlands.

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STZ Price Action: At the time of writing, Constellation stock is trading 6.99% lower at $150.61, according to data from Benzinga Pro.

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