CONSTELLATION BRANDS, INC. (STZ)

Consumer Staples · Food & Beverages · Price $131.43
Updated: Aug 28, 2026
Operating Income (TTM)
$2.9B
Trailing 12 Months
Growth Rate
-1.71%
Log-Linear Regression (16Q)
Operating Margin
31.50%
Operational Efficiency
EV/Operating Income
20.9x
Valuation Multiple
Net Income
$1.8B
After Interest & Taxes

📈 Operating Income History (16 Quarters)

🧮 STZ Operating Income Breakdown

Operating Income = Gross Profit - Operating Expenses (SG&A, R&D, etc.)
Revenue (Top Line) $9.1B
Less: Cost of Revenue → Gross Profit $4.8B
Equals: Operating Income (EBIT) $2.9B
Then: Less Interest & Taxes → Net Income $1.8B

Understanding Operating Income

Operating Income, also known as EBIT (Earnings Before Interest and Taxes), measures a company's profit from its core business operations before financing costs and taxes. For STZ, the trailing twelve month operating income is $2.9B.

Why Operating Income Matters

Operating income isolates business performance from capital structure decisions (debt vs equity financing) and tax strategies. This makes it ideal for comparing companies with different debt levels or tax situations. It shows how efficiently management runs the core operations.

STZ's operating income growth rate of -1.71% (based on log-linear regression of 16 quarters) indicates relatively flat or slightly declining operational performance.

Operating Income vs Other Profitability Metrics

Net Income: $1.8B →

The bottom line after interest and taxes. Net income shows the final profit, while operating income excludes financing decisions.

Free Cash Flow: $1.8B →

Actual cash generated after capital expenditures. FCF can differ significantly from operating income due to working capital and capex.

Owner Earnings: $2.3B →

Buffett's measure of true cash generation. Adds back depreciation and subtracts only maintenance capex.

Revenue: $9.1B →

The top line that operating income is derived from. Operating margin shows what percentage becomes operational profit.

Operating Margin Analysis

STZ's operating margin of 31.50% shows what percentage of revenue converts to operating profit after all operating expenses. Operating margins above 25% are excellent and indicate strong pricing power or operational efficiency.

EV/Operating Income Valuation

The EV/Operating Income ratio of 20.9x shows how the market values STZ's operational earnings. Ratios between 15-25x suggest investors expect continued growth.

Summary: STZ Operating Income Trend

CONSTELLATION BRANDS, INC. (STZ) has an operating margin of 31.50%, which Zyberno classifies as excellent — above the 20% threshold Zyberno applies to businesses across industries, signaling significant pricing power and operational efficiency. Operating income grew at -1.71% annually — a negative trend — revenue erosion that warrants monitoring. For complete financial analysis, view the full STZ stock report on Zyberno.

Frequently Asked Questions

What is STZ's current operating income?

CONSTELLATION BRANDS, INC.'s TTM operating income is $2.9B, growing at -1.71% annually — a negative trend — revenue erosion that warrants monitoring.

Is STZ's operating income growing?

CONSTELLATION BRANDS, INC. (STZ) has an operating margin of 31.50%, which Zyberno classifies as excellent — above the 20% threshold Zyberno applies to businesses across industries, signaling significant pricing power and operational efficiency. Operating income grew at -1.71% annually — a negative trend — revenue erosion that warrants monitoring.

What is STZ's operating margin?

CONSTELLATION BRANDS, INC. (STZ) has an operating margin of 31.50%, which Zyberno classifies as excellent — above the 20% threshold Zyberno applies to businesses across industries, signaling significant pricing power and operational efficiency. Operating income grew at -1.71% annually — a negative trend — revenue erosion that warrants monitoring.

What is the difference between operating income and EBIT?

Operating income and EBIT (Earnings Before Interest and Taxes) are generally the same metric - both measure profit from core operations before financing costs and taxes. STZ's EBIT/Operating Income is $2.9B.

How does operating income differ from net income?

Operating income excludes interest expense and income taxes, while net income includes them. STZ's operating income is $2.9B versus net income of $1.8B. The difference reflects financing costs and tax burden.

📊 Valuation Trilogy
Three interconnected metrics built on Owner Earnings
💎
Intrinsic Value
DCF Fair Value
🛡️
Margin of Safety
Valuation Gap
🎯
Expected Return
Projected Annual
Click any metric for full methodology and detailed analysis

📊 Full STZ Stock Report

See STZ's intrinsic value, margin of safety, DCF valuation, and complete financial analysis with 250+ metrics.

💵 STZ Free Cash Flow

Compare to Free Cash Flow which subtracts all capital expenditures, not just maintenance CapEx.

💰 STZ Owner Earnings

Compare to Buffett's Owner Earnings metric which uses maintenance CapEx instead of total capital expenditures.

📈 STZ Earnings Per Share

Analyze EPS trends, P/E ratio, earnings yield, and per-share profitability metrics.

🎯 STZ Earnings Surprise (SUE)

See whether STZ is beating or missing its own earnings trend — Standardized Unexpected Earnings and post-earnings drift.

📊 STZ Revenue

Analyze revenue trends, growth rate, P/S ratio, and top-line sales performance.

💰 STZ Net Income

Analyze the bottom-line profit, P/E ratio, and net profit margin trends.

🔶 STZ Operating Income

Analyze EBIT, operating margin, and core business profitability before interest and taxes.

💜 STZ Gross Profit

Analyze gross margin, pricing power, and profitability before operating expenses.

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