Revenue growth has stalled into near-stagnation with a -1.4% decline in 2027Q1, while operating margin has compressed significantly from a peak of 38.9% to 27.7%, indicating eroding operating leverage as the post-pandemic consumption cycle normalizes.
Brown-Forman Corporation (BF-B) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Apr'26 | Apr'25 | Apr'24 | Apr'23 | Apr'22 | Apr'21 | Apr'20 | Apr'19 | Apr'18 | Apr'17 | Apr'16 | Apr'15 | Apr'14 | Apr'13 | Apr'12 | Apr'11 | Apr'10 | Apr'09 | Apr'08 | Apr'07 | Apr'06 | Apr'05 | Apr'04 | Apr'03 | Apr'02 | Apr'01 | Apr'00 | Apr'99 | Apr'98 | Apr'97 |
|---|
| Sales/Revenue | 3.92B | 3.93B | 3.98B | 4.18B | 4.23B | 3.93B | 3.46B | 3.36B | 3.32B | 3.25B | 2.99B | 3.09B | 3.13B | 2.99B | 2.85B | 2.72B | 2.59B | 2.47B | 2.48B | 2.58B | 2.22B | 1.98B | 2.31B | 2.21B | 2.06B | 1.96B | 1.92B | 1.88B | 1.78B | 1.67B | 1.58B |
| Revenue Growth % | -0.84% | -1.18% | -4.86% | -1.18% | 7.5% | 13.64% | 2.91% | 1.17% | 2.34% | 8.48% | -3.08% | -1.44% | 4.78% | 4.98% | 4.61% | 5.29% | 4.76% | -0.49% | -3.91% | 16.41% | 12.25% | -14.53% | 4.47% | 7.43% | 5.21% | 1.77% | 2.5% | 5.69% | 6.41% | 5.37% | 2.59% |
| Cost of Goods Sold | 1.54B | 1.55B | 1.63B | 1.65B | 1.73B | 1.54B | 1.37B | 1.24B | 1.16B | 1.05B | 973M | 945M | 951M | 913M | 894M | 928.4M | 862.1M | 857.6M | 904M | 887M | 737M | 655M | 912M | 915M | 878M | 825M | 718M | 712M | 676M | 639M | 630M |
| COGS % of Revenue | - | 39.46% | 41.06% | 39.54% | 41.01% | 39.21% | 39.5% | 36.75% | 34.84% | 32.2% | 32.5% | 30.59% | 30.34% | 30.52% | 31.38% | 34.09% | 33.33% | 34.74% | 36.44% | 34.35% | 33.23% | 33.15% | 39.45% | 41.35% | 42.62% | 42.13% | 37.32% | 37.93% | 38.06% | 38.29% | 39.77% |
| Gross Profit | 2.38B | 2.38B | 2.34B | 2.53B | 2.49B | 2.39B | 2.09B | 2.13B | 2.17B | 2.2B | 2.02B | 2.14B | 2.18B | 2.08B | 1.96B | 1.79B | 1.72B | 1.61B | 1.58B | 1.7B | 1.48B | 1.32B | 1.4B | 1.3B | 1.18B | 1.13B | 1.21B | 1.17B | 1.1B | 1.03B | 954M |
| Gross Margin % | 60.66% | 60.54% | 58.94% | 60.46% | 58.99% | 60.79% | 60.5% | 63.25% | 65.16% | 67.8% | 67.5% | 69.41% | 69.66% | 69.48% | 68.62% | 65.91% | 66.67% | 65.26% | 63.56% | 65.65% | 66.77% | 66.85% | 60.55% | 58.65% | 57.38% | 57.87% | 62.68% | 62.07% | 61.94% | 61.71% | 60.23% |
| Gross Profit Growth % | - | 1.49% | -7.24% | 1.28% | 4.31% | 14.18% | -1.55% | -1.8% | -1.63% | 8.96% | -5.74% | -1.79% | 5.05% | 6.29% | 8.91% | 4.09% | 7.02% | 2.17% | -6.96% | 14.45% | 12.11% | -5.64% | 7.86% | 9.81% | 4.32% | -6.05% | 3.52% | 5.91% | 6.8% | 7.97% | 3.02% |
| Operating Expenses | 1.25B | 1.27B | 1.18B | 1.38B | 1.37B | 1.19B | 928M | 1.04B | 1.02B | 1.15B | 1.01B | 611M | 1.16B | 1.11B | 1.06B | 1.01B | 869M | 901M | 916M | 1.01B | 879M | 745M | 711M | 654M | 808M | 779M | 832M | 817M | 778M | 723M | 667M |
| OpEx % of Revenue | - | 32.31% | 29.58% | 33.01% | 32.33% | 30.18% | 26.81% | 30.81% | 30.75% | 35.53% | 33.77% | 19.78% | 36.89% | 37.01% | 37.1% | 36.98% | 33.6% | 36.49% | 36.92% | 39.12% | 39.63% | 37.7% | 30.75% | 29.55% | 39.22% | 39.79% | 43.24% | 43.53% | 43.81% | 43.32% | 42.11% |
| Selling, General & Admin | 1.27B | 1.27B | 1.23B | 1.35B | 1.25B | 1.13B | 1.07B | 1.02B | 1.04B | 1.17B | 1.03B | 1.1B | 1.13B | 1.12B | 1.06B | 1B | 940M | 889M | 931M | 1.01B | 898M | 792M | 713M | 650M | 812M | 772M | 779M | 755M | 723M | 672M | 617M |
| SG&A % of Revenue | - | 32.31% | 30.89% | 32.43% | 29.52% | 28.68% | 30.92% | 30.48% | 31.2% | 36.02% | 34.37% | 35.77% | 36.18% | 37.51% | 37.14% | 36.9% | 36.34% | 36.01% | 37.53% | 39% | 40.49% | 40.08% | 30.84% | 29.37% | 39.42% | 39.43% | 40.49% | 40.22% | 40.71% | 40.26% | 38.95% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -3M | 0 | -52M | 24M | 119M | 59M | -142M | 11M | -15M | -16M | -18M | -494M | 22M | -15M | -1M | 2M | -71M | 12M | -15M | 3M | -19M | -47M | -2M | 4M | -4M | 7M | 53M | 62M | 55M | 51M | 50M |
| Operating Income | 1.12B | 1.11B | 1.17B | 1.15B | 1.13B | 1.2B | 1.17B | 1.09B | 1.14B | 1.05B | 1.01B | 1.53B | 1.03B | 971M | 898M | 788M | 855M | 710M | 661M | 685M | 602M | 563M | 445M | 381M | 372M | 353M | 374M | 348M | 322M | 307M | 287M |
| Operating Margin % | 28.61% | 28.23% | 29.36% | 27.45% | 26.66% | 30.61% | 33.69% | 32.44% | 34.42% | 32.27% | 33.73% | 49.63% | 32.77% | 32.46% | 31.52% | 28.93% | 33.06% | 28.76% | 26.64% | 26.53% | 27.14% | 28.49% | 19.25% | 17.22% | 18.06% | 18.03% | 19.44% | 18.54% | 18.13% | 18.39% | 18.12% |
| Operating Income Growth % | - | -4.97% | 1.74% | 1.77% | -6.4% | 3.26% | 6.87% | -4.63% | 9.16% | 3.76% | -34.12% | 49.27% | 5.77% | 8.13% | 13.96% | -7.84% | 20.42% | 7.41% | -3.5% | 13.79% | 6.93% | 26.52% | 16.8% | 2.42% | 5.38% | -5.62% | 7.47% | 8.07% | 4.89% | 6.97% | 4.74% |
| EBITDA | 1.19B | 1.11B | 1.25B | 1.23B | 1.21B | 1.28B | 1.24B | 1.17B | 1.22B | 1.11B | 1.07B | 1.59B | 1.08B | 1.02B | 949M | 791.5M | 860.1M | 715M | 716M | 737M | 646M | 607M | 503M | 437M | 427M | 408M | 438M | 410M | 377M | 358M | 337M |
| EBITDA Margin % | 30.37% | 28.23% | 31.55% | 29.54% | 28.55% | 32.62% | 35.91% | 34.64% | 36.58% | 34.24% | 35.67% | 51.44% | 34.4% | 34.14% | 33.31% | 29.06% | 33.25% | 28.96% | 28.86% | 28.54% | 29.13% | 30.72% | 21.76% | 19.75% | 20.73% | 20.84% | 22.77% | 21.84% | 21.23% | 21.45% | 21.28% |
| EBITDA Growth % | -4.34% | -11.56% | 1.62% | 2.24% | -5.92% | 3.22% | 6.7% | -4.19% | 9.35% | 4.12% | -32.79% | 47.4% | 5.58% | 7.59% | 19.9% | -7.98% | 20.29% | -0.14% | -2.85% | 14.09% | 6.42% | 20.68% | 15.1% | 2.34% | 4.66% | -6.85% | 6.83% | 8.75% | 5.31% | 6.23% | 5.31% |
| D&A (Non-Cash Add-back) | 69M | 0 | 87M | 87M | 80M | 79M | 77M | 74M | 72M | 64M | 58M | 56M | 51M | 50M | 51M | 3.5M | 5.1M | 5M | 55M | 52M | 44M | 44M | 58M | 56M | 55M | 55M | 64M | 62M | 55M | 51M | 50M |
| EBIT | 1.12B | 1.11B | 1.2B | 1.43B | 1.11B | 1.2B | 1.16B | 1.09B | 1.13B | 1.04B | 992M | 1.53B | 1.03B | 973M | 901M | 791M | 858M | 713M | 667M | 693M | 602M | 563M | 445M | 381M | 372M | 353M | 427M | 348M | 322M | 307M | 287M |
| Net Interest Income | -90M | -89M | -105M | -113M | -81M | -77M | -79M | -77M | -80M | -62M | -56M | -44M | -25M | -24M | -33M | -28M | -26M | -28M | -31M | -41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 10M | 0 | 17M | 14M | 9M | 5M | 2M | 5M | 8M | 6M | 3M | 2M | 2M | 2M | 3M | 3M | 3M | 0 | 6M | 8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 100M | 89M | 122M | 127M | 90M | 82M | 81M | 82M | 88M | 68M | 59M | 46M | 27M | 26M | 36M | 31M | 29M | 28M | 37M | 49M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -226M | -224M | -86M | 151M | -110M | -90M | -85M | -82M | -102M | -71M | -77M | -44M | -25M | -24M | -33M | -28M | -26M | -28M | -31M | -41M | -16M | -4M | 87M | 7M | 1M | -5M | -8M | -5M | -4M | -11M | -14M |
| Pretax Income | 894M | 885M | 1.08B | 1.3B | 1.02B | 1.11B | 1.08B | 1.01B | 1.04B | 977M | 933M | 1.49B | 1B | 947M | 865M | 760.1M | 828.6M | 682M | 630M | 644M | 586M | 559M | 476M | 388M | 373M | 348M | 366M | 343M | 318M | 296M | 273M |
| Pretax Margin % | 22.84% | 22.53% | 27.2% | 31.07% | 24.05% | 28.32% | 31.23% | 30% | 31.35% | 30.08% | 31.16% | 48.2% | 31.97% | 31.66% | 30.36% | 27.91% | 32.04% | 27.62% | 25.39% | 24.94% | 26.42% | 28.29% | 20.59% | 17.53% | 18.11% | 17.77% | 19.02% | 18.27% | 17.91% | 17.74% | 17.23% |
| Income Tax | 173M | 170M | 212M | 274M | 234M | 276M | 178M | 182M | 207M | 260M | 264M | 422M | 318M | 288M | 274M | 246.9M | 257M | 232.8M | 195M | 204M | 186M | 164M | 168M | 130M | 128M | 120M | 133M | 125M | 116M | 111M | 104M |
| Effective Tax Rate % | 19.35% | 19.21% | 19.61% | 21.11% | 23.01% | 24.78% | 16.47% | 18.04% | 19.87% | 26.61% | 28.3% | 28.34% | 31.74% | 30.41% | 31.68% | 32.48% | 31.02% | 34.13% | 30.95% | 31.68% | 31.74% | 29.34% | 35.29% | 33.51% | 34.32% | 34.48% | 36.34% | 36.44% | 36.48% | 37.5% | 38.1% |
| Net Income | 721M | 715M | 869M | 1.02B | 783M | 838M | 903M | 827M | 835M | 717M | 669M | 1.07B | 684M | 659M | 591M | 513.2M | 571.6M | 449.2M | 435M | 440M | 389M | 320M | 308M | 258M | 245M | 228M | 233M | 218M | 202M | 185M | 169M |
| Net Margin % | 18.42% | 18.2% | 21.86% | 24.51% | 18.52% | 21.31% | 26.09% | 24.59% | 25.12% | 22.08% | 22.34% | 34.54% | 21.83% | 22.03% | 20.74% | 18.84% | 22.1% | 18.19% | 17.53% | 17.04% | 17.54% | 16.19% | 13.32% | 11.66% | 11.89% | 11.64% | 12.11% | 11.61% | 11.37% | 11.08% | 10.67% |
| Net Income Growth % | -14.57% | -17.72% | -15.14% | 30.78% | -6.56% | -7.2% | 9.19% | -0.96% | 16.46% | 7.17% | -37.3% | 55.99% | 3.79% | 11.51% | 15.16% | -10.22% | 27.25% | 3.26% | -1.14% | 13.11% | 21.56% | 3.9% | 19.38% | 5.31% | 7.46% | -2.15% | 6.88% | 7.92% | 9.19% | 9.47% | 5.63% |
| Net Income (Continuing) | 721M | 715M | 869M | 1.02B | 783M | 838M | 903M | 827M | 835M | 717M | 669M | 1.07B | 684M | 659M | 591M | 513M | 572M | 449M | 435M | 440M | 400M | 395M | 339M | 242M | 242M | 228M | 233M | 218M | 202M | 185M | 169M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.57 | 1.53 | 1.84 | 2.15 | 1.63 | 1.74 | 1.88 | 1.72 | 1.73 | 1.48 | 1.37 | 2.09 | 1.28 | 1.22 | 1.10 | 0.95 | 1.04 | 0.81 | 0.77 | 0.76 | 0.67 | 0.55 | 0.54 | 0.42 | 0.35 | 0.35 | 0.36 | 0.34 | 0.31 | 0.28 | 0.26 |
| EPS Growth % | -14.53% | -16.85% | -14.42% | 31.9% | -6.32% | -7.45% | 9.3% | -0.58% | 16.89% | 8.03% | -34.45% | 63.28% | 4.92% | 10.91% | 15.79% | -8.65% | 28.4% | 5.19% | 1.32% | 13.43% | 21.82% | 1.85% | 28.57% | 20% | 0% | -2.78% | 5.88% | 9.68% | 10.71% | 7.69% | 4% |
| EPS (Basic) | - | 1.53 | 1.84 | 2.15 | 1.63 | 1.75 | 1.89 | 1.73 | 1.74 | 1.49 | 1.38 | 2.10 | 1.29 | 1.23 | 1.11 | 0.96 | 1.05 | 0.81 | 0.77 | 0.77 | 0.68 | 0.56 | 0.54 | 0.43 | 0.35 | 0.36 | 0.36 | 0.34 | 0.31 | 0.28 | 0.26 |
| Diluted Shares Outstanding | 459.31M | 466.73M | 472.95M | 477.22M | 480.56M | 480.56M | 480.68M | 480.41M | 482.07M | 484.25M | 488.08M | 510.7M | 532.71M | 537.71M | 537.47M | 540.21M | 549.43M | 557.16M | 567.75M | 579.38M | 582.19M | 578.44M | 574.22M | 571.88M | 687.5M | 651.68M | 643.13M | 643.13M | 644.06M | 647.15M | 646.88M |
| Basic Shares Outstanding | 458.7M | 466.33M | 472.65M | 476.39M | 479.15M | 478.88M | 478.53M | 477.76M | 478.96M | 480.32M | 484.63M | 507.44M | 528.98M | 533.63M | 533.42M | 536.32M | 546.01M | 554.38M | 564.38M | 574.13M | 576.09M | 572.34M | 570.47M | 569.06M | 687.5M | 641.72M | 642.19M | 642.19M | 643.13M | 646.07M | 642.86M |
| Dividend Payout Ratio | - | 59.72% | 48.33% | 39.45% | 48.28% | 99.16% | 37.43% | 39.3% | 37.13% | 107.81% | 40.96% | 24.93% | 37.43% | 35.36% | 179.86% | 37.41% | 57.03% | 38.74% | 38.85% | 82.27% | 36.76% | 40% | 36.04% | 37.6% | 40.41% | 41.23% | 37.34% | 38.07% | 39.11% | 41.08% | 43.2% |
Quick answers to the most common questions about buying BF-B stock.
For fiscal year 2026, Brown-Forman Corporation (BF-B) reported total revenue of $3.93B. This represents a 148.0% increase compared to $1.58B in 1997.
Brown-Forman Corporation (BF-B) is profitable, generating $715.0M in net income for the fiscal year ending 2026 with a net profit margin of 18.2%.
Brown-Forman Corporation (BF-B) reported an operating income of $1.11B, resulting in an operating profit margin of 28.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Brown-Forman Corporation (BF-B) generated $2.38B in gross profit for the year, representing a gross profit margin of 60.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Post-pandemic demand normalization
Metrics are mathematically derived from official filings.
Revenue Growth Stalls Post-Pandemic
Brown-Forman's revenue trajectory has shifted from contraction to near-stagnation, with the most recent quarter showing a -1.4% year-over-year decline, suggesting the post-2021/2022 consumption super-cycle has definitively peaked.
The company's revenue growth has been negative or flat for eight of the last ten quarters, indicating a sustained period of demand normalization. This deceleration appears driven by a mix shift toward lower-margin Ready-to-Drink products and potential consumer trading down, rather than a loss of core brand equity. The lack of consistent positive growth suggests the business is now in a volume-challenged environment where pricing power will be the primary lever for top-line expansion.
Gross Margin Resilience Amid Mix Shift
Despite a challenging revenue environment, Brown-Forman's gross margin has demonstrated resilience, recovering to 60.3% in the latest quarter from a low of 57.4% in 2025Q4, indicating effective pricing and cost management.
The gross margin's recovery to the 60% level, even as revenue growth remains negative, suggests the company is successfully implementing price increases to offset volume declines and input cost pressures. This structural margin strength, which is on par with global peer Diageo, appears to be supported by the premium positioning of its core whiskey portfolio. However, the continued growth of the lower-margin RTD segment presents a long-term headwind that could pressure this structural advantage if not managed carefully.
Operating Leverage Erodes with Volume
Operating margin has compressed significantly from a peak of 38.9% in 2024Q4 to 27.7% in the latest quarter, indicating that the company's high fixed-cost base is now acting as a drag on profitability as revenue stagnates.
The 1,120 basis point decline in operating margin over the last six quarters reveals a lack of positive operating leverage in the current environment. While SG&A has been managed down from its peak, it has not fallen enough to offset the gross profit decline from lower volumes. This suggests the company's cost structure is not sufficiently flexible to maintain profitability during periods of revenue contraction, a key risk if the current demand softness persists.
Net Income Volatility from Non-Operating Items
The quality of Brown-Forman's reported earnings is questionable, as evidenced by the extreme volatility in net income, which swung from $267M in 2026Q3 to just $54M in 2026Q4 despite similar revenue levels.
The massive discrepancy between operating income and net income in certain quarters, particularly the 2026Q4 period where net income was only 25% of operating income, points to significant non-operating items or tax anomalies impacting the bottom line. This volatility makes it difficult for investors to assess the underlying earnings power of the business. The minimal stock-based compensation expense suggests this is not the primary driver, warranting further investigation into the specific non-recurring items affecting reported EPS.
Margin Compression Risk from Portfolio Shift
The strongest challenge to the investment thesis is that Brown-Forman's strategic pivot toward high-volume, lower-margin RTDs may be permanently compressing its consolidated margin profile, undermining its historical premium valuation.
While management frames the RTD expansion as a volume and consumer recruitment play, the financial data shows operating margin has fallen by over 1,100 basis points from its recent peak. If this mix shift continues, the company's structural gross margin advantage over peers like Constellation Brands could erode, making its premium P/E multiple difficult to justify. The market may be underappreciating that the growth engine of the future (RTDs) is fundamentally less profitable than the legacy business it is supplementing.