Constellation Brands is expected to report second-quarter fiscal 2027 earnings on Tuesday that fall short of the prior year, as softening beer demand and tariff-driven input costs squeeze the US maker of Modelo and Corona. Wall Street analysts have trimmed estimates ahead of the report.

The Victor, New York-based company has warned repeatedly in 2026 that its core beer business faces a weaker backdrop, citing cautious spending among Hispanic consumers who account for a large share of its volumes. Management previously lowered full-year guidance, pointing to immigration-related anxiety and broader cost-of-living pressure dampening on-premise and retail sales.

Tariffs on imported aluminium and the company's reliance on Mexican-brewed beer have added further margin strain. Constellation imports its flagship brands from Mexican breweries, leaving it directly exposed to trade measures and packaging costs that executives flagged on prior earnings calls as a headwind to operating margins.

Investors will focus on whether chief executive Bill Newlands reaffirms or again cuts the full-year outlook, and on commentary about depletion trends heading into the autumn. The wine and spirits division, which the company has been restructuring through divestitures, is expected to remain a drag on overall growth.

Constellation shares have underperformed the broader consumer-staples sector over the past year. A further guidance cut would likely pressure the stock, and analysts have questioned whether the long-held narrative of unstoppable Modelo growth is now facing genuine demand limits.