Shares of Constellation Brands Inc. (NYSE: STZ) climbed more than 2% intra-day on Tuesday after the company reported quarterly earnings that topped Wall Street estimates, even as beer sales declined.

The maker of Modelo and Corona posted second-quarter earnings of $3.63 per share for the period ended August 31, exceeding analyst expectations of $3.35. Revenue fell 2% to $2.48 billion, slightly below the consensus forecast of $2.51 billion.

Beer sales dropped 7% year-over-year, driven by an 8.7% decrease in shipment volumes as distributors reduced inventories and consumers cut back on spending.

Constellation reaffirmed its fiscal 2026 outlook, projecting overall earnings per share between $11.30 and $11.60. The company continued to expect beer net sales to decline 2-4% and beer operating income to decrease 7-9%.