Constellation Brands, Inc. stock research
FY2026 Q2
Constellation Brands (STZ) Gross Margin — Quarter Ended Aug 31, 2025
Revenue and cost of revenue were stable sequentially, while gross profit held flat, resulting in a slight improvement in gross margin. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all lower, yet gross margin strengthened modestly.
Gross margin takeaway
Quarter ended Aug 31, 2025 · FY2026 Q2
Revenue and cost of revenue were stable sequentially, while gross profit held flat, resulting in a slight improvement in gross margin. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all lower, yet gross margin strengthened modestly.
- The gross margin improved from the prior quarter even though revenue and cost of revenue were essentially unchanged, indicating a favorable shift in the composition of revenue or cost of revenue. The year-over-year comparison shows that gross margin rose despite lower absolute revenue and gross profit.
- Against the prior quarter, revenue and gross profit were stable, cost of revenue was stable, and gross margin improved. Versus the same quarter a year ago, all three absolute metrics—revenue, gross profit, and cost of revenue—were lower, while gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
52.8%
Gross profit
$1.3B
Revenue
$2.5B
Cost of revenue
$1.2B
Quarter-over-quarter change
+2.4 pts
Year-over-year change
+1.0 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 |
|---|---|---|---|---|
| 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% |
| Aug 31, 2025 | $2.5B | $1.3B | $1.2B | 52.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 31, 2025
+2.4 pts
Year-over-year change
Aug 31, 2024
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved from the prior quarter even though revenue and cost of revenue were essentially unchanged, indicating a favorable shift in the composition of revenue or cost of revenue. The year-over-year comparison shows that gross margin rose despite lower absolute revenue and gross profit.
Against the prior quarter, revenue and gross profit were stable, cost of revenue was stable, and gross margin improved. Versus the same quarter a year ago, all three absolute metrics—revenue, gross profit, and cost of revenue—were lower, while gross margin was higher.
Monitor whether the cost of revenue continues to decline relative to revenue, as this would further support gross margin.