Constellation Brands, Inc. stock research
FY2026 Q1
Constellation Brands (STZ) Gross Margin — Quarter Ended May 31, 2025
Revenue, gross profit, and cost of revenue all decreased compared to both the prior quarter and the same quarter last year. Gross margin weakened sequentially and year-over-year, as cost of revenue declined at a slower rate than revenue.
Gross margin takeaway
Quarter ended May 31, 2025 · FY2026 Q1
Revenue, gross profit, and cost of revenue all decreased compared to both the prior quarter and the same quarter last year. Gross margin weakened sequentially and year-over-year, as cost of revenue declined at a slower rate than revenue.
- The strongest observable margin driver is the relative movement between revenue and cost of revenue; revenue fell more sharply than cost of revenue, compressing gross margin.
- Compared to the prior quarter, revenue and gross profit were higher, but cost of revenue increased proportionally more, leading to a slightly weakened gross margin. Year-over-year, all metrics were lower and gross margin contracted further.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
50.4%
Gross profit
$1.3B
Revenue
$2.5B
Cost of revenue
$1.2B
Quarter-over-quarter change
-1.8 pts
Year-over-year change
-2.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| May 31, 2024 | $2.7B | $1.4B | $1.3B | 52.7% |
| Aug 31, 2024 | $2.9B | $1.5B | $1.4B | 51.8% |
| Nov 30, 2024 | $2.5B | $1.3B | $1.2B | 52.1% |
| May 31, 2025 | $2.5B | $1.3B | $1.2B | 50.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 30, 2024
-1.8 pts
Year-over-year change
May 31, 2024
-2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relative movement between revenue and cost of revenue; revenue fell more sharply than cost of revenue, compressing gross margin.
Compared to the prior quarter, revenue and gross profit were higher, but cost of revenue increased proportionally more, leading to a slightly weakened gross margin. Year-over-year, all metrics were lower and gross margin contracted further.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether margin pressure continues.