Constellation Brands, Inc. stock research
FY2026 Q3
Constellation Brands (STZ) Gross Margin — Quarter Ended Nov 30, 2025
Revenue decreased compared to both the prior quarter and the same quarter last year. Gross profit also declined, but cost of revenue decreased more sharply, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Nov 30, 2025 · FY2026 Q3
Revenue decreased compared to both the prior quarter and the same quarter last year. Gross profit also declined, but cost of revenue decreased more sharply, resulting in an improved gross margin.
- The gross margin improvement was accompanied by a cost of revenue reduction that outpaced the decline in revenue.
- Compared to the immediately preceding quarter, gross margin was higher, while revenue and gross profit were lower. Compared to the same quarter one year earlier, gross margin was also higher, with revenue and gross profit lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
53.2%
Gross profit
$1.2B
Revenue
$2.2B
Cost of revenue
$1.0B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+1.1 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 |
|---|---|---|---|---|
| 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% |
| Nov 30, 2025 | $2.2B | $1.2B | $1.0B | 53.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 31, 2025
+0.4 pts
Year-over-year change
Nov 30, 2024
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was accompanied by a cost of revenue reduction that outpaced the decline in revenue.
Compared to the immediately preceding quarter, gross margin was higher, while revenue and gross profit were lower. Compared to the same quarter one year earlier, gross margin was also higher, with revenue and gross profit lower.
The company's share repurchase program, with substantial remaining authorization, is a key capital allocation item to monitor.