Canopy Growth Gets a Shot in the Arm From Both Washington and Its Own Books

Canopy Growth shareholders have had little to cheer about this year, but the past few days delivered two distinct catalysts — one from the highest court in the United States and another straight from the company’s own income statement. The stock edged up 3.51% on Monday to €0.85, reflecting a rare combination of regulatory progress and solid operational numbers that have so far failed to reverse the broader downtrend. Since the start of 2026, the equity has lost 17.43%, and it remains a long way from its 52-week high of €2.00 hit last December.

The U.S. Supreme Court handed down a unanimous decision in United States v. Hemani that effectively bars federal authorities from banning occasional cannabis users from owning firearms. Writing for the 9-0 majority, Justice Neil Gorsuch argued that applying a firearm possession ban to non-habitual cannabis consumers violates the Second Amendment. The ruling is narrow — it does not cover people under the influence or those with dependency — but it chips away at the federal stigma around cannabis use and signals a shift in how courts view the plant’s legal status.

That same week, the Drug Enforcement Administration kicked off formal hearings in Arlington, Virginia, to consider reclassifying marijuana from Schedule I to Schedule III under the Controlled Substances Act. The Trump administration already moved FDA-approved, state-licensed medical cannabis into Schedule III in April 2026. The hearings are scheduled to run until July 15, 2026, with a final ruling expected later this year. Bipartisan signals from Congress suggest legislative meddling is unlikely, even though a handful of House members have attempted to defund the process.

Should investors sell immediately? Or is it worth buying Canopy Growth?

On the corporate front, Canopy Growth reported its fiscal fourth-quarter results, and the medical cannabis business stole the show. Revenue from that segment jumped 27% in the quarter, pushing full-year medical sales up 17%. The company now claims the top spot in the Canadian medical cannabis market by revenue. The recently completed acquisition of MTL Cannabis contributed to the momentum, already yielding C$6 million in cost savings, with a target of C$10 million on an annualized basis. Canopy is also expanding its footprint in Australia and tightening its European supply chain.

Total revenue for the quarter rose 10% to C$71.2 million, while cannabis sales specifically climbed 20%. The headline financial improvement came from a sweeping recapitalization completed in January 2026, which flipped the company from net debt to a net cash position of C$131.3 million. Yet the gross margin for the full year slipped to 24%, a reminder that profitability remains elusive. Management has set a target of positive adjusted EBITDA for fiscal 2027.

Despite the encouraging developments, the market remains skeptical. The stock trades at roughly C$0.82 — equivalent to about €0.59 from the 52-week high. The relative strength index sits at 37, indicating selling pressure has not fully abated. DA Davidson kept its rating at “Neutral” without a price target. With an annualized 30-day volatility near 38%, cannabis equities continue to swing wildly on every regulatory whisper. The real test will come with the first quarter of fiscal 2027, when investors will see if the company can deliver on its EBITDA promise — and whether the DEA’s final decision provides the lasting tailwind the market has been waiting for.