Diageo faces a deteriorating fundamental outlook as revenue growth has reversed to -2.6% in 2026Q4, with operating margins compressing to 25.2% from peak levels, suggesting weakening consumer demand and eroding pricing power. The company's balance sheet carrie...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Diageo's revenue momentum has shifted to contraction with a -2.6% YoY decline in 2026Q4, while gross margins have compressed to 57.7% from a peak of 62.9% in 2022, indicating input cost pressures and less favorable product mix.
Diageo boasts over 200 premium brands sold globally, reinforcing its leadership in the spirits and beer industry.
The company's premium brand positioning allows it to maintain resilient margins through pricing power.
With operations in nearly 180 countries, Diageo benefits from geographic diversification and reduced market-specific risks.
Trailing total returns as of 9/24/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 6, 2026 | $2.80+9.8% vs $2.55 | $9.2B+0.4% vs $9.1B |
Q1 2026 Feb 25, 2026 | $3.80+3.5% vs $3.67 | $10.5B-0.6% vs $10.5B |
Q3 2025 Aug 5, 2025 | $2.64+6.5% vs $2.48 | $9.3B+0.1% vs $9.3B |
Q1 2025 Feb 4, 2025 | $3.91-8.0% vs $4.25 | $10.9B+1.4% vs $10.7B |
Jefferies has thrown its weight behind Diageo PLC's (LSE:DGE) plan to fix its ailing US business, telling clients the shares could climb 35% as the turnaround takes hold. The investment bank kept its 'buy' rating on Diageo, the FTSE 100 drinks giant behind Johnnie Walker, Guinness and Smirnoff, with a price target of 2,200p against a current 1,626p.
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Diageo remains a 'Buy' despite sector headwinds, with a revised price target of $90/share reflecting updated risks and valuation assumptions. Operational improvements include $800M+ in restructuring savings, headcount reduction, and solid free cash flow, supporting earnings resilience even as organic sales decline. North America remains a key weakness, with double-digit sales declines in spirits and persistent challenges expected through 2027; other geographies show growth.
Benchmark DEO against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Diageo plc (DEO)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $86.11 | $47.87B | 20.31 | -0.12% | 11.63% | 18.65% | 4.79% | |
| $116.57 | $19.91B | 12.13 | -10.47% | 20.14% | 22.3% | — | |
| $24.37 | $2.51B | -30.09 | 120.01% | -54.75% | -7.7% | — | |
| $167.69 | $1.75B | 16.96 | 3.69% | -3.36% | -8.89% | — | |
| $12.94 | $277.1M | -2.59 | -23.77% | -48.4% | -35.32% | — | |
| $1.89 | $9.42M | -2.95 | 53.74% | -5.92% | -3.34% | — |
Diageo plc (DEO) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Diageo plc (DEO) stock FAQ — growth, dividends, profitability & financials explained
Diageo plc (DEO) reported $39.91B in revenue for fiscal year 2025. This represents a 197% increase from $13.44B in 1997.
Diageo plc (DEO) saw revenue decline by 0.1% over the past year.
Yes, Diageo plc (DEO) is profitable, generating $4.08B in net income for fiscal year 2025 (11.6% net margin).
Yes, Diageo plc (DEO) pays a dividend with a yield of 4.79%. This makes it attractive for income-focused investors.
Diageo plc (DEO) has a return on equity (ROE) of 18.6%. This is reasonable for most industries.
Diageo plc (DEO) generated $6.79B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
