Constellation Brands, Inc.

Read together, the numbers and scores show a mixed picture. Fiscal 2026 operating income rose to $2.72 billion from $354.9 million, and net income moved from a loss of $81.4 million to $1.69 billion, yet revenue fell 10.5% to $9.14 billion and operating cash flow fell to $2.67 billion from $3.15 billion. The Beneish M-Score of -2.743 is below the -1.78 threshold and is not in the elevated zone, so this screen did not flag manipulation risk; it is a screening tool, not proof either way. The Altman Z″-Score of 3.55 falls in the safe zone, meaning the distress model does not place the company in its distress range. The Piotroski F-Score is 6 of 9 computable signals, a middling result on the signals that could be computed. The Fog Index of 16.00 is in the hard-to-read band, so readers may want to work through the segment tables and the liquidity section directly rather than relying on summaries. Operating cash flow divided by net income is 1.58, meaning cash generation exceeded reported earnings in fiscal 2026, though that ratio says nothing about why the net income swing occurred. Management points to the 2025 Restructuring Initiative, premiumization in Beer, the higher-end Wine and Spirits portfolio, and the Veracruz Brewery timeline. The 2025 Authorization permits up to $4.0 billion in share repurchases, and the 2025 Credit Agreement provides a $2.25 billion revolving facility. The filing also notes Sands Family ownership of Class A Stock and a CEO transition, both of which readers may want to examine in the governance sections. Finally, the MD&A excerpt comes from a quarterly 10-Q for the period ended August 31, 2026, while the financial facts and scores are annual figures, so readers may want to keep those periods distinct when comparing them.

Catalyst.Management's MD&A centers on premiumization: Modelo Especial is described as the #1 beer brand by U.S. dollar sales, the company says it is the #1 dollar share gainer in the overall U.S. beer market, and its Wine and Spirits portfolio has been repositioned to exclusively higher-end brands. Management also cites its 2025 Restructuring Initiative and says commercial production at the Veracruz Brewery is now expected to begin at the start of Fiscal 2028. In the reported numbers, fiscal 2026 operating income rose to $2.72 billion from $354.9 million in fiscal 2025, while revenue declined to $9.14 billion from $10.21 billion.

Hidden risk.Revenue fell 10.5% and operating cash flow dropped to $2.67 billion from $3.15 billion, a decline of about 15.2%. The swing from a fiscal 2025 net loss of $81.4 million to fiscal 2026 net income of $1.69 billion is large, and the excerpts provided do not explain its drivers, so a reader should not assume the improvement reflects the same underlying trend. The filing's forward-looking list also names dependence on beer brands, reliance on limited brewery facilities, tariffs on aluminum and Canadian and other retaliatory tariffs, and possible goodwill or trademark impairments. Long-term debt rose to $9.69 billion from $9.29 billion.