STZ · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

CONSTELLATION BRANDS, INC. · 2026-10-07 · Importance 63 · Surprise 64 · In source text

Second-quarter income tax provision fell to $147.1 million from $296.8 million, and the effective tax rate declined to 20.2% from 37.9%; a net tax benefit from valuation-allowance changes was partly offset by resolutions of prior-period tax examinations and assessments. For the first six months, the provision declined to $235.2 million from $384.4 million and the effective rate fell to 15.8% from 27.6%. Constellation expected its Fiscal 2027 reported effective tax rate to be 11%–13%, including an estimated $100 million–$150 million tax benefit in the quarter ending November 30, 2026, from foreign tax reform enacted in September 2026. Lower taxes were a primary contributor to net income growth of 21% in the quarter and 24% for the six-month period.

Key facts

• Constellation Brands expects its reported effective tax rate for Fiscal 2027 to be 11% to 13%, including an estimated $100 million to $150 million tax benefit in the three months ending November 30, 2026, from foreign tax reform enacted in September 2026. source
• Second Quarter 2027 net income attributable to Constellation Brands increased 21% to $565.8 million from $466.0 million, primarily due to lower income tax provision and shipment volume growth. source
• Six Months 2027 net income attributable to Constellation Brands increased 24% to $1,219.6 million from $982.1 million, primarily due to lower income taxes and shipment volume growth. source
• Second Quarter 2027 income tax provision was $147.1 million, down from $296.8 million in Second Quarter 2026; the effective tax rate was 20.2% versus 37.9%. source
• Six Months 2027 income tax provision was $235.2 million, down from $384.4 million in Six Months 2026; the effective tax rate was 15.8% versus 27.6%. source

Impact estimates