Beverages
STZ delivered strong Q1 FY2027 results with net income surging 26.7% YoY to $653.8M, driven by a 390 bps gross margin expansion to 54.3% and significant cost discipline, even as revenue dipped 3.3% to $2.43B.
Key risk: High Leverage and Debt Burden
STZ carries $10.20B in long-term debt against $8.26B in stockholders' equity, resulting in a debt-to-equity ratio of 1.64. While debt has been reduced 8.9% YoY, the elevated leverage leaves the company exposed to interest rate fluctuations and limits financial flexibility in a downturn.
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